(Reuters) -Abercrombie & Fitch raised annual profit forecast on Tuesday, betting on strong demand for its Hollister dresses, jeans and jackets, as shoppers snap up in-trend apparel at deeper discounts during early holiday promotions.
Shares of the company jumped 16% in premarket trading, after it also beat third-quarter sales estimates.
The clothing retailer, whose denim jeans average around $100, has benefited from resilient spending among affluent consumers, strong digital strategy and growing demand from young shoppers for outerwear and dresses.
Attractive deals and discounts, combined with its partnership with the NFL as the league’s first official fashion collaborator, has also boosted its popularity.
The company expects net income per share for fiscal 2025 to be between $10.20 and $10.50, the midpoint of which is higher than its previous range of $10.00 to $10.50.
Abercrombie’s net sales rose 7% to $1.29 billion for the quarter ended November 1. Analysts on average estimated $1.28 billion, according to data compiled by LSEG.
(Reporting by Prerna Bedi in Bengaluru; Editing by Shilpi Majumdar)
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