Abercrombie & Fitch raises sales forecast amid strong demand

Abercrombie & Fitch raised its annual sales growth forecast and surpassed first-quarter estimates on Wednesday, driven by high demand for its trendy apparel and accessories at Abercrombie and Hollister.

The company saw robust demand for its products, including popular baggy jeans and shorts, as customers continued to prioritise shopping for fashion items despite budget constraints.

"We successfully navigated seasonal transitions with relevant assortments and compelling marketing, leveraging agile chase capabilities and inventory discipline, driving sales above our expectations," said CEO Fran Horowitz.

For the quarter ending May 4, Abercrombie & Fitch reported net sales of $1.02 billion, beating analysts' average estimate of $963.3 million according to LSEG data. The company posted an adjusted profit of $2.14 per share, exceeding analysts' expectations of $1.74 per share.

Looking ahead, Abercrombie & Fitch now expects fiscal 2024 net sales to increase by 10 per cent, up from its previous forecast of a 4 to 6 per cent rise.

(With Reuters inputs)