Abercrombie&Fitch Maintains The Four Quarter Expected Government Shutdown To Cause Price Shocks

Abercrombie & Fitch Co. (NYSE:ANF), on Monday, updated its fourth quarter performance expectations. It is expected that the four quarter sales will have a low single digit declines, the same store sales have a low single digit increase, and gross margin will maintain 58.4% level.

In the context of lower US stock index and the continued closure of the US government, the Abercrombie & Fitch Co. share price volatility was high before and after, and the fluctuation was as high as 5%.

Fran Horowitz, the group's chief executive, said that the company is expected to achieve a low single digit SSS growth in the four quarter, which is a positive performance in the six quarter. The fast track fashion brand Hollister continued to grow, while Abercrombie recorded a decrease in women's clothing and skirt performance, but the group's new design team is working hard to correct it.

There is no doubt that the market volatility is also around the group's fourth quarter SSS expectations, as well as the negative performance of Abercrombie. At the end of November, when the three quarter results were released, the Group expects to achieve a low single digit sales growth in the fourth quarter. The latest performance also shows that Abercrombie brand has lost kinetic energy again after four consecutive quarters of growth.

In the earnings report, the US youth Apparel Group also expects a four decrease in operating costs in the 561 million quarter, with an estimated operating cost of $561 million after adjustment.

Fran Horowitz, which led the group to recover from the worst, said Monday that in the 2018 fiscal year, the group is expected to achieve its expected growth, including $1 billion in online sales and gross margin improvement.

Fran Horowitz has led the group to reform in the past few years, including investing heavily in supply chains and product portfolios. It has successfully improved product supply and shortened product cycles, so that performance has been fundamentally improved.