Benzinga | Jan 10, 2022 04:28PM EST

Abercrombie & Fitch Sees Prelim. FY21 Net Sales Up 19-20% From 2020, Sees Q4 Net Sales Up 4-6% From 2020

NEW ALBANY, Ohio, Jan. 10, 2022 (GLOBE NEWSWIRE) -- Abercrombie & Fitch Co. (NYSE:ANF) today provided an update on its outlook for the 2021 fiscal year and the fourth quarter of fiscal 2021.

For Fiscal 2021 the company expects:

* Net sales up in the range of 19% to 20% compared to 2020 net sales of $3.125 billion and up 2% to 3% compared to 2019 net sales of $3.623 billion.

* Operating margin of 9% to 10%, in-line with previous outlook, compared with adjusted non-GAAP operating margins of 1.7% and 2.3% in fiscal 2020 and fiscal 2019, respectively.

* Capital expenditures of $90 million to $95 million versus previous outlook of $100M.

For the fourth quarter of Fiscal 2021, the company expects:

* Net sales up in the range of 4% to 6% compared to 2020 net sales of $1.122 billion and flat to down 2% compared to 2019 net sales of $1.185 billion, reflecting ongoing U.S. and digital momentum. Prior outlook of up 3% to 5% to 2019 was impacted by additional unexpected and uncontrollable inventory receipt delays and increased COVID-related impacts and restrictions.

* Gross profit rate to be approximately flat to 2019 levels of 58.2%, in line with previous outlook, reflecting double-digit AUR improvement relative to 2019 and 2020 on reduced depth and breadth of promotions and markdowns, offset by approximately $75 million of freight cost pressure, equating to roughly 650 basis points in gross profit rate, due to rising ocean and air rates and increased air deliveries related to Vietnam factory closures.

* Operating expense, excluding other operating income, to be up low-to-mid single digits from 2019 adjusted non-GAAP operating expense of $565 million, in line with previous outlook, reflecting store occupancy savings due to closures offset by higher fulfillment costs and marketing investments.

* An effective tax rate in the low to mid 20's, compared to previous outlook of low 20s.

* Stock repurchases of at least $125 million pending market conditions and share price, inclusive of approximately $115 million repurchased quarter-to-date.