Abercrombie & Fitch Lifts FY Outlook; Shares Surge

(RTTNews) - Abercrombie & Fitch Co. (ANF) Thursday lifted its earnings outlook for the full year based largely on better than expected sales during the holiday season and cost cuts. Shares of the teen clothing retailer surged 14 percent, following the news.

The New Albany, Ohio-based company now expects full year adjusted earnings of $1.55 to $1.65 per share for the full year, up from prior guidance of $1.40 to $1.50 per share. Analysts polled by Thomson Reuters currently estimate earnings of $1.47 per share for the full year. Analysts estimates typically exclude one-time items.

Abercrombie lifted its outlook based on higher than expected sales for the fourth quarter-to-date and ongoing cost reduction efforts.

Total comparable sales for the nine weeks ended January 4, 2014, including direct-to-consumer sales, fell 6 percent with U.S. decreasing 4 percent and international sales down 10 percent. Direct-to-consumer comparable sales increased 25 percent.

Chief Executive Mike Jeffries said, "Given the challenging and promotional retail environment, we are pleased that our quarter-to-date performance has exceeded expectations."

ANF closed Thursday's trading at $33.21, up $0.29 or 0.88%, on the NYSE. The stock further gained $4.64 or 13.97% in after-hours trade.