Abercrombie news business 2023

Abercrombie Shares Soar with Raised Full-Year Guidance

The company cites strong performances from both Abercrombie and Hollister brands in their positive outlook

Abercrombie & Fitch Co. updated its full-year guidance, indicating a strong performance from the Abercrombie brand and renewed growth in net sales at Hollister.

The company’s second-quarter earnings surpassed expectations, accompanied by a significant increase in comparable sales. In a move to enhance customer engagement, Abercrombie is not only opening new stores but is also investing heavily in technology.

“Our first half results provide us the confidence to maintain a proactive stance for the second half of the year, despite the fluctuating macro environment,” stated Chief Executive Officer Fran Horowitz. The company’s shares experienced a 16.2% increase in early New York trading.

For some time, Hollister, which targets the teen demographic, had been impacting Abercrombie’s collective performance. Horowitz commented on the brand’s resurgence, saying, “Our initiatives to reposition Hollister’s brand and product assortment are yielding positive results.”

It’s noteworthy that while certain retail brands like Kohl’s Corp. and Macy’s Inc. grapple with maintaining sales due to a shift in consumer expenditure towards travel and entertainment, those brands that continue to resonate with their audience are witnessing success. In line with this trend, Urban Outfitters Inc. also announced an encouraging growth in its comparable sales for the recent quarter in a separate release on Tuesday.