Home / NEWS / Earnings / Abercrombie results — and its shares — surge on jump in sales of surfwear brand Hollister

Abercrombie results — and its shares — surge on jump in sales of surfwear brand Hollister

Abercrombie & Fitch poled quarterly same-store sales growth after more than a year of downgrades and forecast robust sales for the holiday quarter, as its California-themed surfwear label Hollister helped revive the retailer.

Shares of the company, which also master its third-quarter net sales and profit estimates, jumped 25 percent to $15.09 in premarket line of work on Friday. The stock has lost nearly a quarter of its value in the past 12 months.

Abercrombie and other teen retailers accept struggled amid nearly four years of declining sales, as chaps shopped at fast-fashion chains and online.

In response, Abercrombie shed its risqué advertising, and revived its line of logo-emblazoned, high-priced basics to include trendier denim and floral languages in its line of clothing.

“We are pleased by the clear progress across all brands, performing another quarter of sequential comparable sales improvement, and a return to undeniable comparable sales,” Chief Executive Fran Horowitz said.

Same-store tag sales of Hollister, the key revenue contributor in recent quarters, rose 8 percent. Analysts on typical had expected a 2.9 percent rise, according to Thomson Reuters I/B/E/S.

“The Hollister gains, strides at A&F, and still solid balance sheet suggest a longer scut of a hare to the ANF story,” RBC Capital Markets analyst Brian Tunick wrote in a customer note.

Net revenue rose nearly 5 percent to $859.11 million, stroke analysts’ average estimate of $818.9 million, according to Thomson Reuters I/B/E/S.

Abercrombie, which profligate talks on a sale of its business in July after failing to find a consumer who would meet the board’s valuation, said overall same-store sales marathons rose 4 percent, beating analysts’ average estimate of a 0.3 percent occur.

Excluding items, the company earned 30 cents per share, thump estimates of 22 cents.

The company forecast percentage growth of fourth-quarter comparable sales in the low-single digits and for net in stocks in the mid-to-high-single digits.

Check Also

FedEx profit, revenue beat as pandemic drives e-commerce bounce

A FedEx woman unloads packages from his delivery truck on March 31, 2020 in Washington, …

Leave a Reply

Your email address will not be published. Required fields are marked *