Abercrombie & Fitch Shares Surge on Upbeat Outlook and Profitability

**Abercrombie & Fitch Shares Surge on Upbeat Outlook and Profitability**.

Abercrombie & Fitch Co. (NYSE: ANF) shares surged 25% in premarket trading on Thursday after the American Eagle Outfitters Inc (NYSE: AEO)-owned retailer raised its full-year outlook and reported better-than-expected quarterly profit..

**Key Takeaways from Abercrombie & Fitch’s Earnings Report:**.

**Financial Performance:**.

* Net sales increased by 3% year-over-year to $1.14 billion, beating analysts’ estimates of $1.12 billion..

* Comparable sales rose by 2%, driven by growth in both stores and digital channels..

* Gross profit margin improved by 120 basis points to 60.6%, primarily due to lower promotional activity..

* Net income surged by 80% to $66.8 million, resulting in diluted earnings per share of $0.86, exceeding consensus estimates of $0.80..

**Outlook:**.

* Abercrombie & Fitch raised its full-year net sales growth guidance to a range of 2%-4%, up from its previous estimate of 1%-3%..

* The company expects comparable sales to increase by 2%-4%, indicating sustained momentum in its core business..

* Gross profit margin is projected to be approximately 60.5%, reflecting the company’s ongoing focus on profitability..

**Management’s Commentary:**.

Chief Executive Officer, Fran Horowitz, expressed optimism about the company’s performance and future prospects:.

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