Abercrombie & Fitch re-iterated its guidance for its fiscal fourth quarter ending in February.
In the retailer’s reaffirming projections, comparable-store sales is in a range of flat to up +2%. In the year-ago quarter, it increased +3%.
Net sales guidance is in a range of flat to up +2% (which includes adverse currency impact of about $5 million).
As for gross profit re-iteration, the company expects about -150 basis points decline in the gross profit rate from 59.1% in the year-earlier period. Seventy basis points of that decline is attributed to currency fluctuations and expected China tariffs.
CEO Fran Horowitz said that the company experienced record revenues in the U.S. over Black Friday week ( including the Tuesday before Thanksgiving through Cyber Monday).
In a separate event, Chief Financial Officer Scott Lipesky indicated at the ICR Conference in Orlando, Florida, that the company is willing to exit even the top-notch shopping centers if it wants to reduce its physical presence. “We’re willing to walk away from any mall at this point,” he said . “For us, it’s about getting the right store in the right location at the right size.” (as mentioned in Bloomberg).