NEW YORK (TheStreet) --Shares of Abercrombie & Fitch Co. (ANF) are rising higher by 4.74% to $29.16 in mid-afternoon trading on Wednesday, as the teen apparel retailer's CEO Michael Jefferies commented on the company's plan to win back its shoppers, MarketWatch reports.
The company's third quarter 2014 earnings results were disappointing, with earnings and revenue declining year over year, and comparable store sales falling 10%, as Abercrombie is downsizing its logo merchandise.
Watch the video below for a closer look at Abercrombie & Fitch's adjusted Q3 results:
However, Abercrombie said its non-logo apparel and jeans sales yielded positive results for the quarter, MarketWatch added.STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.
Jefferies said the company is testing price cuts of close to 15% in the U.K. and will then expand that practice throughout Europe, as comparable store sales dropped in Europe for the most recent quarter, MarketWatch said.
The company's has also added more new fashion more frequently, cut costs, and closed underperforming stores, MarketWatch noted.
For the 2014 third quarter Abercrombie said its non-GAAP net earnings were 42 cents per diluted share, a decline from the 52 cents per diluted share reported for the year ago quarter, but higher than analysts' forecasts of 41 cents per share.
For the most recent quarter Abercrombie & Fitch reported revenue of $911 million, compared to $1.03 billion for the 2013 third quarter.
Analysts polled by Thomson Reuters expected the company to post earnings of $916.03 million.
Abercrombie & Fitch slashed its full year adjusted earnings guidance to a range between $1.50 to $1.65 per share, compared to a previous range of $2.15 to $2.35 per share.
Separately, TheStreet Ratings team rates ABERCROMBIE & FITCH as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate ABERCROMBIE & FITCH (ANF) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its good cash flow from operations, growth in earnings per share and increase in net income. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself and disappointing return on equity."
You can view the full analysis from the report here: ANF Ratings ReportANF data by YCharts