Consumer
Abercrombie Sales Beat Underwhelms After Big Run-Up in Stock
- Retailer ‘held to a higher standard’ than others: analyst
- CEO highlights increasingly uncertain consumer environment
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Abercrombie & Fitch Co. beat analysts’ sales expectations for the sixth consecutive quarter, but it wasn’t enough to impress investors who have grown accustomed to the ’90s fashion comeback.
The retailer said comparable sales rose 18% in the second quarter, exceeding the 15% growth that analysts had projected. The outperformance was driven by the Hollister chain, while sales at namesake Abercrombie stores were roughly in-line with estimates. Gross margin was also slightly below expectations.