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NEW ALBANY, United States — Abercrombie & Fitch Co. soared as much as 22 percent in early trading after third-quarter revenue topped analysts' estimates, helped by rebounding sales at its Hollister unit.
Revenue in the quarter was $878.6 million, the New Albany, Ohio-based company said Friday in a statement. While that was down 3.6 percent from a year earlier, it topped analysts’ $862.8 million average projection.
The results show Abercrombie’s turnaround strategy is starting to gain traction, especially at its younger, Southern California-inspired Hollister brand. At both the Hollister and Abercrombie units, the company has introduced new, stylish products and updated stores, turning down the music and raising the lights to bring customers back.
Comparable sales at Hollister, which accounts for more than half of Abercrombie’s revenue, rose 3 percent during the third quarter. Analysts had estimated a 1.1 percent decline. Comparable sales include online revenue and sales from stores open at least a year while excluding the effects of currency fluctuations.
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Abercrombie’s adjusted third-quarter profit was 48 cents a share. Analysts estimated 22 cents, on average.
The shares rose as much as $4.31 to $23.80 before the start of regular trading in New York. Abercrombie had slid 32 percent this year through Thursday.
By Lindsey Rupp; editors: Nick Turner, Kevin Orland, Paul Jarvis.
