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Abercrombie Misses Holiday Quarter Sales Estimates on Omicron, Supply Chain Affected

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March 2 (Reuters)Clothing retailer Abercrombie & Fitch Co ANF.N missed quarterly sales estimates on Wednesday with product shortages and Omicron-induced COVID-19 restrictions tarnishing holiday season business, sending shares down 7%.

Abercrombie’s sales were weaker than expected as factory closures in Vietnam and shipping delays led to product shortages during the peak shopping season as the retailer struggled to secure seasonal items important items such as outerwear.

Abercrombie has also been hit with new pandemic-related restrictions in some parts of the world due to an increase in the Omicron variant at the end of the year, forcing the company to reduce its outlet opening hours. of sale.

The Ohio-based company’s net sales hit $1.16 billion in the fourth quarter from $1.12 billion a year earlier, but missed analysts’ estimates of $1.18 billion, according to IBES data from Refinitiv.

Net income attributable to Abercrombie fell to $65.5 million, or $1.12 per share, from $82.4 million, or $1.27 per share, a year earlier.

Urban Outfitters Inc Teen Clothing Pair URBN.O also saw a drop in in-store traffic ahead of Christmas, while American Eagle Outfitters Inc INFINITE TIME reported a hit to holiday sales due to supply chain grunts and disruptions from Omicron.

(Reporting by Deborah Sophia in Bengaluru; Editing by Krishna Chandra Eluri)


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