Retail Winners: Abercrombie, J.C. Penney - TheStreet

NEW YORK (

TheStreet

) - Retailers are gaining Tuesday afternoon on some better-than-expected earnings reports.

Most notably, teen retailer

Abercrombie & Fitch

(ANF) - Get Report

is rising 4.4% to $35.34, after the company reported adjusted fourth-quarter earnings that topped Wall Street's forecast.

Excluding charges related to the closure of its Ruehl chain, Abercrombie & Fitch earned 91 cents, higher than the 87 cents a share analysts predicted.

Abercrombie is also targeting extensive international growth

, which is expected to offset weak sales at home.

As a result, Wall Street Strategies analyst Brain Sozzi upgraded Abercrombie & Fitch to hold from sell and raised his price target on the stock to $37 from $26.

Despite begin downgraded by Morgan Stanley,

J.C. Penney

(JCP) - Get Report

is advancing 2.4% to $25.51 in afternoon trading.

Morgan Stanley cut J.C. Penney to equal weight from overweight, citing margin concerns. The broken said margins at the department store have most likely peaked.

Department store rivals are following J.C. Penney's lead, with

Macy's

(M) - Get Report

up 2.1% to $17.48,

Sears

(SHLD)

increasing 1.5% to $91.86 and

Kohl's

(KSS) - Get Report

climbing 2.3% to $50.59.

Other significant gainers include

Bebe

(BEBE)

, which is spiking 8.9% to $8.44,

eBay

(EBAY) - Get Report

, which is jumping 2.6% to $22.34, and

Office Depot

(ODP) - Get Report

, which is surging 9.8% to $6.39.

But there were several losers, including

Gap

(GPS) - Get Report

, which is losing 2.5% to $19.63, after also being downgraded by Morgan Stanley.

Blockbuster

(BBI) - Get Report

is also falling, by 2.9% to 37 cents in afternoon trading.

-- Reported by Jeanine Poggi in New York.

RELATED STORIES:

>>Abercrombie & Fitch Not a Buy Yet

Follow TheStreet.com on

Twitter

and become a fan on

Facebook.

Copyright 2009 TheStreet.com Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.