US teen apparel retailer Abercrombie & Fitch posted its third quarter results with a slight increase in revenues and a 10 percent growth in earnings. This is much better than expectations of a 0.6% drop in sales and a 33% decline in earnings and was fuelled by growth of its Hollister label and momentum in the US.
Strong sales growth and a cheery view of the holiday season has encouraged the retailer to close fewer stores this year than previously thought.
The apparel retailer said it plans to close 40 stores by the end of 2018, rather than 60, “based on improved performance and successful lease renegotiations”.
Abercrombie & Fitch Chief Executive Fran Horowitz also said the retailer had a “solid start” to the critical holiday shopping season.
“We saw a solid start to the holiday season in November, with strong double-digit growth on Singles Day on Tmall and a record performance over the peak Holiday period from Thanksgiving Day through Cyber Monday.” – Fran Horowitz, Chief Executive, Abercrombie & Fitch
The news sent its share prices jumping 27.5 percent to US $ 21.82, up from US $ 17.12, and has risen 14.8 percent on the year.