Abercrombie & Fitch announced Monday that it saw strong demand from consumers over the holiday period but that it didn’t have enough inventory to sell, particularly at its Hollister and Gilly Hicks lines.
Shares rose nearly 7% in extended trading following the release, despite Abercrombie lowering its guidance for fourth-quarter sales.
“We believe that, if we had the inventory on-hand, we would have delivered sales within our previous outlook range,” said Chief Executive Fran Horowitz, in a press release.
Abercrombie said it expects fourth-quarter revenue up 4% to 6% from 2020 levels, or flat to down 2% compared with 2019.
The company reported sales of $1.12 billion in 2020 and $1.19 billion in 2019.
The apparel retailer said it has faced significant Covid-related impacts and restrictions, without detailing exactly what those are.
For the year, Abercrombie sees sales up 19% to 20% from year-ago levels. Analysts had been looking for a 21.2% increase.
The company also said it’s trimming its planned capital expenditures for the year to a range of $90 million to $95 million, down from $100 million.
Find the full release from Abercrombie here.