Mar 2, 2016
Abercrombie & Fitch posts unexpected rise in comparable sales
Mar 2, 2016
Teen apparel retailer Abercrombie & Fitch Co reported a surprise increase in quarterly sales at established stores due to demand for its Hollister branded clothing and strong online sales in the holiday shopping season.
The retailer's shares rose about 6 percent to $31.14 in premarket trading on Wednesday.
Abercrombie said sales at stores open at least 12 months rose 1 percent in the fourth quarter ended Jan. 30, breaking a streak of more than 3 years of decline.
Analysts on average were expecting comparable sales to decline 0.10 percent, according to research firm Consensus Metrix.
The company has been offering trendier clothing such as floral prints, aiming to win back customers who shunned its once-popular preppy, logo-centric apparel.
Abercrombie said it expected comparable sales to be flat to slightly positive in fiscal 2016. Analysts on average had expected a rise of 0.8 percent.
Net income attributable to the company rose 30.1 percent to $57.7 million in the latest fourth quarter. Excluding items, it earned $1.08 per share.
Net sales fell 0.6 pct to $1.11 billion, shy of analysts average estimate of $1.10 billion, according to Thomson Reuters I/B/E/S.
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