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Abercrombie & Fitch updates Q4 outlook

By Prachi Singh

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Business

Updating its outlook for the fourth quarter of fiscal 2017, Abercrombie & Fitch Co. said that the company now expects comparable sales to be up high-single digits, compared to the previous outlook of up low-single digits. Net sales are now expected to be up low-teens, compared to the previous outlook of up mid- to high-single digits, including benefits from the 53rd week and changes in foreign currency exchange rates and a gross profit rate in line with the previous outlook of down approximately 100 basis points from last year's rate of 59.3 percent.

Commenting on the update, Fran Horowitz, the company’s Chief Executive Officer, said in a statement: "We are pleased by our performance across all brands and channels during the holiday season, with continued strength at Hollister, and the Abercrombie brand on track to deliver positive comparable sales for the quarter."

The company added that it is currently assessing the impact of the Tax Cuts and Jobs Act of 2017, but expects to recognize a significant income tax charge in the fourth quarter primarily related to the one-time deemed repatriation tax on accumulated foreign earnings.

Picture:Hollister website

Abercrombie & Fitch