The Business of Fashion
Agenda-setting intelligence, analysis and advice for the global fashion community.
Agenda-setting intelligence, analysis and advice for the global fashion community.
Abercrombie & Fitch Co forecast first-quarter net sales above estimates on Tuesday after tightened costs and surging online sales of sweaters, fleece tops and knit bottoms helped it report a better-than-expected quarterly profit.
The company, which said it would resume share buybacks, also benefited from increased prices during the holidays as it reined in promotions and tightened inventory.
The teen- and millenial-focused retailer has partnered with TikTok influencers Charli and Dixie D’Amelio and ramped up investments in its online business to combat declining store traffic as customers shift to online shopping due to the pandemic.
It projected a 30 percent to 40 percent increase in net sales in the first quarter versus an average analysts’ estimate for a 32.8 percent jump to $644.62 million.
ADVERTISEMENT
Demand for its loungewear and Gilly Hicks brand’s activewear drove digital sales 34 percent higher, as customers staying at home turned to comfortable clothing.
“Our distribution centres remained operational, enabling us to fulfil digital customer demand globally, partially mitigating lost sales from temporary store closures,” said Chief Executive Officer Fran Horowitz.
Net sales fell 5 percent during the quarter.
In a bid to rein in costs, the Ohio-based company reduced payroll expenses, suspended dividend and closed 137 stores last year, including eight larger format flagships, as it pivots toward smaller, newly remodelled stores to draw in customers.
Excluding one-time items, the company reported a profit of $1.50 per share in the fourth quarter, beating analysts’ average estimate of $1.22 per share.
By Aditi Sebastian; Editor: Devika Syamnath.
Antitrust enforcers said Tapestry’s acquisition of Capri would raise prices on handbags and accessories in the affordable luxury sector, harming consumers.
As a push to maximise sales of its popular Samba model starts to weigh on its desirability, the German sportswear giant is betting on other retro sneaker styles to tap surging demand for the 1980s ‘Terrace’ look. But fashion cycles come and go, cautions Andrea Felsted.
The rental platform saw its stock soar last week after predicting it would hit a key profitability metric this year. A new marketing push and more robust inventory are the key to unlocking elusive growth, CEO Jenn Hyman tells BoF.
Nordstrom, Tod’s and L’Occitane are all pushing for privatisation. Ultimately, their fate will not be determined by whether they are under the scrutiny of public investors.