Abercrombie & Fitch Posts Surprise Quarterly Profit

This week, Abercrombie & Fitch posted a surprise quarterly profit and increased the full-year sales forecast as the company leans into current trends. Yahoo Finance reported that shares are up by 29%.

“(Abercrombie) is no longer just a jeans and T-shirt business,” said CEO Fran Horowitz. The retailer has stepped up its stock across all labels and become a go-to place for American to purchase clothing items like dresses, cargos and formal pants. Abercrombie has also embraced the “non-denim bottom trend” according to Horowitz.

Abercrombie’s positive report also proves that despite economic uncertainty, Americans are still willing to spend money on discretionary items, CNN reported. Additionally, “The company reported a net income of $16.57 million in the first quarter. That’s an improvement on a loss of $16.46 million a year earlier. Sales also rose to $836 million, up from $812.8 million a year ago.

It has also been reported that Abercrombie expects net sales to keep growing this year, increasing between 2% and 4%.