(News Bulletin 247) – Abercrombie & Fitch Co announced on Wednesday that it has revised its annual objectives sharply up after posting much better than expected results in its second quarter.
The clothing specialist now says it expects net sales to grow by around 10% for the full year, compared to a previous estimate of between 2% and 4%.
The clothing manufacturer – very popular among teenagers – also plans to post an operating margin of between 8% and 9%, instead of a previous estimate ranging from 5% to 6%.
In the past quarter, which ended at the end of July, its net sales rose 16% to $935 million, well above Wall Street estimates, which forecast sales of $842 million.
In detail, sales of Abercrombie brands jumped 26% while those of Hollister rose 8%.
The Ohio-based group also posted an operating profit of $89.8 million, or a margin of 9.6%, compared with a loss of $2.2 million (-0.3%) one year earlier.
Following this publication, Abercrombie stock was expected to rise 15% on Wednesday morning at the opening of Wall Street.
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