Shares of Abercrombie & Fitch (NYSE:ANF) soared Wednesday, after the retailer crushed Wall Street’s earnings and sales expectations for the quarter and raised its forecast for the year.
In a news release, CEO Fran Horowitz said global growth accelerated in the three-month period. She said the company is seeing “strong customer receptivity of our brands and product,” especially at its namesake stores.
She added the retailer will keep opening stores and investing in its digital experience — even as the economic backdrop remains uncertain.
Second-quarter earnings per share measured $1.10 vs. 17 cents expected, on revenue of $935.3 million vs $842.4 million expected
Net income for the three-month period rose to $56.9 million, or $1.10 per share, from a loss of $16.8 million, or 33 cents a share, in the year-ago period.
Net sales rose from $805.1 million in the year prior.
Abercrombie said it now anticipates net sales will rise by about 10% for the full fiscal year, up from $3.7 billion in the prior year. It had previously expected growth of between 2% and 4%.
It said it expects operating margins to improve, too, as costs of freight and raw materials fall. It anticipates operating margins to be in the range of 8% to 9%, compared with prior expectations of 5% to 6%.
The retailer’s sales and its stock price have shot up, as Abercrombie has reinvented its image from a mall store known for shirtless models and a strong scent of cologne to a retailer that resonates with a broader audience.
ANF shares opened Wednesday up $7.33, or 17.8%, to $48.50.