Abercrombie & Fitch shares jumped on Wednesday after the company reported second-quarter earnings and a profit outlook that beat Wall Street’s expectations, despite ongoing pressure on comparable sales.
The stock was on track for its biggest one-day gain in over nine months, according to Dow Jones Market Data. Shares have risen this month but were still down for the year as of Tuesday’s close.
For the quarter ending August 2, the company posted adjusted earnings of $4.17 per share, a big jump from $2.32 last year and much higher than Wall Street’s $1.99 estimate. Net sales increased 5% to $1.27 billion, just above the $1.25 billion consensus from FactSet. The quarterly profit also included a $1.75 per share benefit from tariff refunds.
Company leaders said growth was steady across different brands and regions, with stronger momentum in the Americas and better trends in Europe, the Middle East, and Africa. Comparable sales were flat compared to last year, which was an improvement from the previous quarter’s decline and better than Wall Street expected. Same-store sales for the main Abercrombie brand rose 4%, while Hollister’s same-store sales fell 3%.
Looking forward, the company expects third-quarter net income of $2.90 to $3.20 per share and net sales growth of 5% to 6%, both higher than Wall Street’s $2.82 estimate. For the full year, Abercrombie & Fitch now predicts about 5% sales growth and net income between $13.10 and $13.60 per share, well above analyst estimates and up from its earlier forecast of $10.20 to $11 per share on 3% to 5% sales growth.
