Abercrombie & FitchMonday’s statement stated that while there was strong consumer demand over the holidays, it did not have sufficient inventory to sell it. This is especially true for its Hollister line and Gilly Hicks line.

The release was followed by extended trading that saw shares rise nearly 7 percent despite Abercrombie’s lower guidance regarding fourth-quarter sales. Closed the day at $32.35, the stock was down 2.5%

In a press release, Chief Executive Fran Horowitz stated that “We believe, if the inventory had been on-hand,” he said. We have seen a significant increase in our sales since the inventory has arrived after holiday.

Abercrombie indicated that it expects to see fourth quarter revenues rise by 4% to 66% from 2020 levels. This is a flat rate to down 2% over 2019, but this was a change from its previous forecast. The company had been calling for holiday sales to rise by between 3% and 5% in comparison to 2019. However, it didn’t release any earnings figures.

In 2020, the company had sales of $1.12 trillion and in 2019 $1.19 billion.

According to Refinitiv estimates, analysts had expected fourth quarter earnings of $1.59 per shares, and sales would increase 10.7% over the previous year.

Although the retailer claimed it had been subject to more severe Covid-related consequences and restrictions, it did not detail exactly what they were. The retailer stated earlier in the day that it had faced heightened Covid-related impacts and restrictions. LululemonAccording to the company, fourth quarter sales will be come in on the low end of previous guidance due to staffing shortages and shortened store hoursThis has been made worse in recent weeks. omicron.

Abercrombie anticipates that sales will rise by 19% to 20% in the current year compared with year-ago. Analysts expected a 21.2% rise.

Additionally, the company stated that it will reduce its capital expenditures by $90 to $95 million for this year. This is a decrease of $100 million.

Abercrombie’s complete release here.