The New Albany, Ohio-based retailer said it expects comparable-store sales to increase in the low-single digits with a gross profit rate flat to up slightly from last year's rate of 58.4%. The company also said that it expects net sales to decline in the mid-single digits.
Analysts polled by FactSet were expecting the company to report a 1.2% increase in comps with $1.14 billion, implying a 4.8% year-over-year decline. Operating expenses, meanwhile, are expected to decline between 1% and 2% year over year.
"We were pleased with our performance in the competitive holiday season. We remain on track to deliver a low-single digit comp for the fourth quarter, representing our sixth consecutive quarter of positive comparable sales," CEO Fran Horowitz said. "For the full year, we remain on track to deliver top-line growth including over $1 billion in digital sales, gross profit rate expansion and operating expense leverage. We are excited to continue evolving our brands and transforming our operating model as we move into 2019."
Abercrombie & Fitch is scheduled to release its fourth-quarter and full-year results on March 6.