Abercrombie shares soar after boosting full-year outlook

Abercrombie & Fitch Co. soared after raising its full-year guidance, pointing to strength at the Abercrombie namesake brand and a return to net sales growth at Hollister.

The company also posted second-quarter earnings that exceeded expectations and double-digit growth in comparable sales. Abercrombie is continuing to open stores and is making long-term investments in technology to keep customers engaged, the company said.

“While the macro environment remains dynamic, our first half results give us confidence to stay on offense for the second half,” Chief Executive Officer Fran Horowitz said in a statement. 

The shares were up 16.2% in early trading in New York.

Hollister, a brand that caters to teens, had been a drag on Abercrombie’s overall performance until this quarter. “Our efforts to evolve Hollister brands’ positioning and assortment are paying off,” Horowitz said.

While some retailers like Kohl’s Corp. and Macy’s Inc. have been struggling to keep sales afloat as shoppers shift their spending away from goods and toward travel and entertainment, brands that are resonating with customers are still doing well. In a separate report on Tuesday, Urban Outfitters Inc. also reported better-than-expected growth in comparable sales in the most recent quarter.