Abercrombie & Fitch (ANF) shares jumped over 25% Wednesday morning after the company reported first-quarter results that beat analysts’ forecasts.
The apparel retailer posted earnings per share (EPS) of $1.59, higher than the $1.41 expected by analysts surveyed by Visible Alpha. Sales rose 8% year-over-year to a record $1.10 billion, surpassing the $1.06 billion estimate.
Comparable store sales increased 4%, well above the 2.3% growth predicted. Sales grew in all three geographic regions. While the Abercrombie brand saw a 4% sales decline, this was offset by a strong 22% increase at the Hollister brand.
Abercrombie & Fitch raised the top end of its full-year sales growth forecast to 6%, up from the previous 5%. The new range is 3% to 6% growth, compared to the earlier 3% to 5%.
However, the company lowered its full-year EPS forecast to between $9.50 and $10.50, down from $10.40 to $11.40. This revision reflects an expected $50 million cost from tariffs, which equals about 1% of net sales.
For the second quarter, the company expects sales growth between 3% and 5%, and EPS between $2.10 and $2.30. Analysts had forecast sales growth of 4.1% and EPS of $2.56.
Shares opened up 27% on Wednesday, recovering from a nearly 50% drop since the start of the year.
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