Preppy teen-clothing retailer
Abercrombie & Fitch
posted a 43% rise in third-quarter earnings Tuesday and backed its profit target for the remainder of the year.
The New Albany, Ohio-based company reported a third-quarter profit of $102 million, or $1.11 a share, up from $71.6 million, or 79 cents a share, a year ago.
Analysts polled by Thomson First Call expected earnings of $1.10 a share.
Abercrombie's sales increased 22% to $863.4 million. Same-store sales, or sales at stores open at least a year, rose 5%. Analysts predicted revenue of $853.8 million.
"I am pleased with our accomplishments for the third quarter," said Mike Jeffries, chairman and chief executive in a statement. "We performed well from a financial standpoint while enhancing the long term positioning of our brands."
The company's sales were buoyed by its smaller brands, like the abercrombie kids' clothing chain, Hollister surf-wear chain and Ruehl accessories chain. Same-store sales increased 8% at abercrombie and Hollister, and 20% at Ruehl.
Meanwhile, same-store sales at the core Abercrombie & Fitch chain increased only 1%.
The company reiterated its earnings forecast for the second-half net income of $3.25 to $3.30 a share. Based on this projection, Abercrombie expects net income for the full year to be $4.59 to $4.64 a share. Wall Street targets fiscal-year earnings of $4.63 a share.
In after-hours trading, shares of Abercombie were down $2.45, or 3.2%, to $74.16.