Why Abercrombie & Fitch Shares Are Soaring Tuesday

Abercrombie & Fitch Co ANF shares are trading higher Tuesday after the company reported better-than-expected financial results.

Abercrombie & Fitch said third-quarter revenue was down 3% year-over-year to $880 million, which beat average analyst estimates of $831.13 million, according to Benzinga Pro. The company reported quarterly adjusted earnings of 1 cent per share, which beat estimates for a loss of 15 cents per share.

"While net sales were down 3% as compared to last year on a reported basis, net sales were flat on a constant currency basis. Results were driven by Abercrombie brands where we delivered the highest Q3 net sales since 2014 and the tenth consecutive quarter of average unit retail growth," said Fran Horowitz, CEO of Abercrombie & Fitch.

Abercrombie & Fitch ended the quarter with $257 million in cash and equivalents. The company now expects full-year revenue to be down 2% to 3%. It previously guided for full-year revenue to decline in the mid single-digits. 

"We are cautiously optimistic as the holiday season kicks into high gear. While the environment remains dynamic, we are focused on what we can control," Horowitz added.

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ANF Price Action: Abercrombie & Fitch has a 52-week high of $42.23 and a 52-week low of $14.02.

The stock was up 15.4% at $21.50 at time of publication. 

Photo: Phillip Pessar from Flickr.