Abercrombie and Fitch tops analyst estimates with Q3 revenue

Abercrombie and Fitch soared the most in three years after third-quarter revenue topped analyst estimates, helped by rebounding sales at its Hollister unit. Revenue in the quarter was $878.6 million, the Ohio-based company said in a statement. While that was down 3.6 per cent from a year earlier, it topped analysts' $862.8 million average projection. The results show Abercrombie's turnaround strategy is starting to gain traction, especially at its younger, Southern California-inspired Hollister brand.

At both the Hollister and Abercrombie units, the company has introduced new, stylish products and updated stores to bring customers back. Comparable sales at Hollister, which accounts for more than half of Abercrombie’s revenue, rose 3 per cent during the third quarter. Analysts had estimated a 1.1 percent decline. – (Bloomberg)