Abercrombie & Fitch is going nuts after crushing earnings

pulse

November 29, 2018 2:31 PM

Abercrombie & Fitch beat on the top and bottom lines, and delivered strong same-store sales for the third quarter.

null

Shares surged more than 25% early Thursday.

Abercrombie & Fitch surged more than 25% early Thursday after reporting strong third-quarter results.

The teen retailer earned an adjusted $0.33 a share on revenue on revenue of $861.2 million, easily beating the $0.21 and $853 million that analysts surveyed by Bloomberg were expecting. Same-store sales jumped 3% versus a year ago, outpacing the 1.7% gain that Wall Street was looking for. Abercrombie said that both its flagship business and its Hollister brand had solid quarters.

"We are pleased with our third quarter performance, our fifth consecutive quarter of positive comparable sales, with growth across both of our brands," CEO Fran Horowitz said in the earnings release.

"Our strong U.S omnichannel business, and 16% global digital sales growth, confirm that our playbooks are working."

Looking ahead, Abercrombie maintained its fiscal year 2018 same-store sales forecast of between 2% and 4%, and said that it expects to close 40 stores by year-end — down from its previous estimate of up to 60.

Abercrombie was down 3.28% this year through Wednesday, trading at $17.12 a share.