Abercrombie & Fitch Inc. stock ANF rose 5% in premarket trade Monday, after the clothing retailer raised its guidance for sales and operating margin following better-than-expected holiday sales. The company is now expecting fourth-quarter sales to rise 1% to 2%, up from prior guidance of down 2% to 4%. It expects its operating margin to range from 6% to 8% for the quarter, compared with prior guidance of 5% to 7%. For the full year, it expects sales to be down about 1%, compared with prior guidance of down 2% to 3%. It expects its operating margin to range from 2.5% to 3.0%, compared with prior guidance of 2% to 3%. Chief Executive Fran Horowitz said the women’s business was on track for a record fourth quarter, while the men’s has risen from the third quarter. “For Hollister, while we expect to finish the fourth quarter with sales below 2021 levels, the sales trend improved nicely from third quarter as we have begun to realize initial benefits from assortment adjustments and personnel changes,” said the CEO. For 2023, the company will “continue to balance playing both offense and defense in this evolving macroeconomic environment.” The stock is down 24% in the last 12 months, while the S&P 500 SPX has fallen 17%.
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