Abercrombie & Fitch Beats Forecast

(Updated with stock price.)

NEW ALBANY, Ohio (TheStreet) -- Abercrombie & Fitch(ANF Quote) posted a 39% plunge in third-quarter earnings, but easily surpassed expectations, sending shares rising in morning trading.

During the quarter, the company earned $38.8 million, or 44 cents a share, compared with $63.9 million, or 72 cents, in the year-ago period.

Excluding charges, the company would have earned 30 cents a share, easily topping Wall Street's forecast.

Sell Abercrombie!: Against the Grain

Sales dropped 15% to $765.4 million, while same-store sales tumbled 22%. The company reported declines across all of its chains, including its Ruehl chain, which it is in the process of shuttering.

The company said the closure of the contemporary concept will cost $60 million, $5 million less than originally anticipated.

One of the only bright spots for Abercrombie & Fitch was its direct-to-consumer sales, which includes Web sales, and which shot up 11% to $63.9 million.

As sales remain sour at home and as shoppers turn to lower-priced rivals like Aeropostale(ARO Quote), the company is focusing its attention internationally. It opened a namesake store and abercrombie flagship in Milan, and two Hollister stores in the U.K.

Abercrombie & Fitch also plans on opening a flagship in Tokyo in December and five Hollister mall-based stores in Europe in the fourth quarter. Next year it will look to Copenhagen, Denmark; and Fukuoka, Japan.

Shares of the retailer are gaining 5.6% to $38.80 in early trading.

-- Reported by Jeanine Poggi in New York

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