Shares of Abercrombie & Fitch surged 11% in premarket trading on Wednesday after the retailer raised its full-year outlook, citing resilient demand for apparel despite broader international weakness.
The company now projects full-year net sales growth of 5%, up from its prior guidance of 3% to 5%. Quarterly revenue totaled $1.27 billion, exceeding analyst expectations of $1.25 billion, according to LSEG data.
Abercrombie’s namesake brand reported an 8% increase in sales for the quarter, while its Hollister brand, which targets younger consumers, posted a 2% rise. The company attributed the performance to strong back-to-school demand and sustained appeal among millennial shoppers for Abercrombie’s offerings.
Earnings guidance was also revised upward, with the annual EPS range now set at $13.10 to $13.60, compared with the previous forecast of $10.20 to $11.00. The update reflects continued confidence in the company’s pricing power and inventory management amid shifting consumer spending patterns.
Abercrombie & Fitch, based in New Albany, Ohio, operates under two primary brands and competes in a retail sector facing mixed signals from global markets.
