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Investing.com -- Abercrombie & Fitch Co. (NYSE: ANF) shares soared more than 16% premarket after the apparel retailer posted better-than-expected third-quarter earnings and raised its full-year outlook, driven by strong performance from its Hollister brand.
The company reported adjusted earnings of $2.36 per share for the third quarter, comfortably beating analyst estimates of $2.20. Revenue reached a record $1.3 billion, up 7% YoY and ahead of the $1.28 billion consensus estimate. This marks the company’s 12th consecutive quarter of growth.
Hollister brands led the growth with a 16% increase in sales, while Abercrombie brands saw a 2% decline. By region, both Americas and EMEA segments grew 7%, while APAC declined 6%. The company achieved a 12% operating margin despite facing a 210 basis point adverse impact from tariffs.
"We achieved three years of consecutive quarterly sales growth, delivering record third quarter net sales, with 7% growth to last year," said CEO Fran Horowitz. "Hollister brands grew 16% on a strong finish to back-to-school and fall seasonal transition."
The company narrowed its full-year outlook, now expecting net sales growth of 6% to 7% (up from 5% to 7% previously) and earnings per diluted share of $10.20 to $10.50, above the analyst consensus of $10.06. For the fourth quarter, Abercrombie projects revenue growth of 4% to 6% with earnings per share between $3.40 and $3.70.