NEW YORK (TheStreet) -- Abercrombie & Fitch (ANF) shares are up by 8.04% to $21.23 in early market trading on Thursday, after the apparel retailer reported a net loss that was wider than analysts expected but also said that it expects see improved sales in the next year.
The New Albany, OH-based company reported a first quarter net loss of $63.2 million, or a loss of 53 cents per diluted share that missed analyst estimates of a loss of 34 cents per share by 19 cents.
Revenue for the period fell 14% year over year to $709.4 million, also short of analysts' consensus guidance of $733.7 million.
The teen apparel retailer said that it plans to reboot its image amid flagging sales, moving away from the shirtless models and "sexualized" ads that the company has previously relied on for its brand image.
The company said it expects comparable store sales to improve during the second half of the year despite a dollar that continues to gain strength and hurt its revenues. The company gets over 35% of its revenue from its overseas business.
"We knew the first quarter was going to be difficult due to a number of factors, both internal and external and, most significantly, because many of the actions we are taking to improve our business are in the early stages of implementation and have not yet been fully realized," said executive chairman Arthur Martinez.
However, we did see sequential improvements in a number of areas during the quarter, most notably within Hollister, and our comparable sales trend has continued to improve in May. While our turnaround won`t be accomplished overnight, we believe the changes we are making will reinvigorate our iconic brands and lead to meaningful and lasting improvement," said Martinez.