Shares of Abercrombie & Fitch surged 22% on Tuesday after the U.S. apparel retailer raised its full-year outlook, citing robust demand from millennials and back-to-school shoppers.
The Columbus, Ohio-based company now expects full-year revenue growth of 5%, up from its prior guidance of 3% to 5%. Earnings per share are projected to reach between $13.10 and $13.60, compared with the previous range of $10.20 to $11.00.
Abercrombie attributed the improved outlook to strong demand for its Abercrombie brand among millennials and increased sales at Hollister, which has attracted younger shoppers preparing for the back-to-school season. The company reported a strong second quarter, which provided the foundation for the upgraded guidance.
Abercrombie & Fitch’s shares closed 22% higher at $124.70 on the New York Stock Exchange, marking one of the largest single-day gains in recent months for the retailer.
