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Shares of Abercrombie & Fitch
soared 16% in premarket trading on Tuesday after the company posted 7% growth in quarterly sales and issued its holiday guidance.
Abercrombie, which runs its namesake brand and Hollister, is expecting fourth-quarter sales to climb between 4% and 6%, which is largely below Wall Street expectations of 5.6% growth, according to LSEG. It anticipates earnings per share will be between $3.40 and $3.70, roughly in line with expectations of $3.55 per share.
The company’s namesake banner has fueled its comeback in recent years, but now that the Abercrombie brand’s growth has started to moderate, Hollister has picked up the baton. CEO Fran Horowitz said sales at Abercrombie are expected to be flat in the current quarter, indicating growth at Hollister is set to drive the company’s holiday shopping season.
