Teen apparel retailer Abercrombie & Fitch trimmed its annual sales growth forecast on Tuesday, blaming political issues from Brexit to the Hong Kong protests for keeping customers away from its stores outside the US.
Abercrombie & Fitch Co missed Wall Street estimates for quarterly same-store sales due to slowing demand for its surf-themed Hollister apparel and forecast second-quarter sales below estimates on Wednesday.
The Ohio-based lifestyle retailer has beaten out analysts’ estimates to report $96.9 million in Q4 earnings, or $1.42 per diluted share, shooting the company’s shares up approximately 22% in morning trading on Wednesday.
A recent study of teenagers’ conversations by Engagement Labs has found that they are moving away from traditional youth brands such as Abercrombie & Fitch, as Nike continues to cement its position as a Gen-Z favorite.
Abercrombie & Fitch’s Hollister brand has announced a partnership with musicians Khalid and Noah Cyrus for the upcoming fall season, joining the brand’s Carpe Now campaign which will run throughout the year.