(CercleFinance.com) – The American fashion brand Abercrombie & Fitch announced Thursday that it has revised its annual sales and margin forecasts downwards due to uncertainty surrounding the strength of the global economy in the second half.
The Ohio-based apparel maker now says it expects revenue to decline around 5% for the full year, down from a previous estimate of between 0% and 2% increase.
In its press release, the group explains that this objective takes into account the prospect of a weakening of consumer demand in the coming months, against a backdrop of soaring inflationary pressures.
Its operating margin should be between 1% and 3% at the end of the financial year, and not between 5% and 6% as initially envisaged.
In its second quarter, which ended at the end of July, its operating loss reached two million dollars, against a profit of 115 million dollars during the same quarter of the previous financial year.
Net sales totaled $805 million, down 7%, as sales growth at the Abercrombie brand failed to offset a decline at Hollister.
Fran Horowitz, the company’s chief executive, says he saw a deterioration in the global economic environment during the second quarter.
Following these remarks, the action Abercrombie showed a decline of more than 13% in pre-market quotations.
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