Abercrombie: stock soars as results beat expectations

(CercleFinance.com) - The US clothing brand Abercrombie & Fitch's share jumped on Thursday after the group announced a return to profit for its second fiscal quarter.


The clothing brand, which remains very popular with young Americans, posted a net profit of 5.5 million dollars for the quarter ended early August, compared to a loss of 31.1 million dollars a year ago.

Sales fell 17% to 698 million dollars due to the Covid-19 crisis, but this performance is better than the consensus of 650 million dollars.

Another bit of good news, its online sales have climbed 56%, now representing 386 million dollars.

The group, which says that it has 1.1 billion dollars in cash, nevertheless refused to provide any forecasts for the third quarter or the entire fiscal year, citing the uncertainty around the health situation.

At around 10 am (New York time), the stock was up almost 15%. Note that since January it has fallen by 35%.



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