Abercrombie raises full-year sales forecast on robust apparel demand; shares surge

Aug. 26 (Reuters) - Abercrombie & Fitch raised its full-year sales and profit forecasts on Wednesday as resilient demand for its apparel brands offset weakness in its international markets, sending the retailer's shares up 22% in early trading.

New Albany, Ohio-based Abercrombie entered the crucial school reopening shopping season with momentum at Hollister, its teen-focused brand, which has historically benefited from seasonal spending.

Hollister's back-to-school season continued to build as the company exited the second quarter, CEO Fran Horowitz said in a post-earnings call.

Sales beat expectations on improving Abercrombie trends and easing EMEA pressure at Hollister, said Telsey Advisory Group analyst Dana Telsey.

The company now expects full-year net sales to grow 5%, compared with its earlier forecast of 3% to 5%.

Abercrombie & Fitch is the official fashion partner of the NFL for the 2026 season, underscoring the company's push into branded and cultural partnerships.

It also raised its annual earnings per share forecast to $13.10 to $13.60, from $10.20 to $11.00 per share, after considering tariff refunds of $120 million under International Emergency Economic Powers Act for the fiscal year.

Abercrombie & Fitch, whose denim jeans are priced at an average of $100, operates a portfolio of apparel brands including Abercrombie, Hollister, abercrombie kids and Gilly Hicks.

The company reported quarterly earnings per share of $4.17, beating analysts' estimate of $1.99 per share.

Abercrombie brand sales rose 8% in the quarter while sibling brand Hollister's sales rose 2%.

Quarterly revenue came in at $1.27 billion, slightly above analysts' expectation of $1.25 billion, according to data compiled by LSEG.