Home News Abercrombie cut its full-year sales forecast as inflation hit

Abercrombie cut its full-year sales forecast as inflation hit

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News Tech: Aug 25 (Reuters) – Apparel retailer Abercrombie & Fitch Co on Thursday cut its full-year sales forecast after falling short of Wall Street estimates for quarterly sales, underscoring increasing competition for consumer dollars amid surging inflation.

Soaring inflation is eroding consumer spending power at a greater pace than seen in decades, prompting Americans to curb spending on apparel and other discretionary purchases and prioritize essentials.

Shares of the Ohio-based retailer, which have shed more than 46% this year, were down about 11% in premarket trading.

The company now expects net sales to decline mid single digits in fiscal 2022, compared with its earlier forecast of flat to 2% growth.