Abercrombie & Fitch reaffirms Q4 SSS up low single digits
Abercrombie & Fitch announced that it is reaffirming its previously issued outlook for the fourth quarter of fiscal 2018 as follows: Driven by the loss of fiscal 2017's 53rd week and adverse impacts from both the calendar shift and changes in foreign currency exchange rates, net sales to decrease mid-single digits; Comparable sales to be up low-single digits on top of 9% last year A gross profit rate flat to up slightly from last year's rate of 58.4%; GAAP operating expense, excluding other operating income, to be down in the range of 1% - 2% from last year's adjusted non-GAAP operating expense of $561 million. Fran Horowitz, CEO, said: "We were pleased with our performance in the competitive holiday season. We remain on track to deliver a low-single digit comp for the fourth quarter, representing our sixth consecutive quarter of positive comparable sales. From a regional perspective, comp trends remain directionally consistent with the third quarter. Hollister continues its momentum with strength across genders. At Abercrombie, weakness in Women's tops and dresses is driving a projected negative brand comp for the quarter, which the brand's new leadership team is actively addressing."