Abercrombie & Fitch’s stock soars 16% after earnings trounce estimates and company raises guidance

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Abercrombie & Fitch Co.’s stock soared 16% in premarket trade Wednesday, after the teen clothing retailer blew past estimates for the second quarter and...

Abercrombie & Fitch Co.’s stock ANF, -1.41% soared 16% in premarket trade Wednesday, after the teen clothing retailer blew past estimates for the second quarter and raised guidance. The New Albany, Ohio-based company had net income of $56.9 million, or $1.10 a share, after a loss of $16.8 million, or 33 cents a share, in the year-earlier period. Adjusted per-share earnings also came to $1.10, well ahead of the 17 cent FactSet consensus. Sales rose to $935.3 million from $805.

0 million FactSet consensus. Same-store sales rose 13%, while FactSet expected a 4.3% rise. “We continue to see strong customer receptivity of our brands and product, led by 26% net sales growth in Abercrombie brands,” CEO Fran Horowitz said in a statement. The company raised its full-year guidance and now expects sales to grow 10%, up from prior guidance of up 2% to 4%. It expects third-quarter sales to rise by low double-digits.

 

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