**Abercrombie & Fitch** shares surged in after-hours trading on Tuesday after the struggling retailer raised its full-year outlook on the back of strong first-quarter results.
The teen retailer said first-quarter sales rose 7% to $792 million, driven by a 6% increase in comparable sales. Analysts had expected sales of $758 million and comparable sales growth of 1.7%, according to Consensus Metrix.
Abercrombie & Fitch also said it now expects full-year sales to rise 2% to 4%, up from its previous forecast of a 1% to 3% sales increase. The company also raised its full-year earnings outlook to a range of $1 to $1.10 per share, up from its previous guidance of 90 cents to $1 per share.
The company’s shares rose more than 10% in after-hours trading following the news. The stock has now gained more than 50% year-to-date.
Abercrombie & Fitch has been struggling in recent years as it has lost market share to fast-fashion retailers like H&M and Zara. However, the company has been taking steps to turn around its business, including closing stores, cutting costs, and revamping its product line.
The company’s first-quarter results show that these efforts are starting to pay off. Abercrombie & Fitch is now reporting positive comparable sales growth for the first time in several quarters.
The company’s raised full-year outlook is a sign that it is becoming more confident in its turnaround plan. If Abercrombie & Fitch can continue to execute on its plan, it could be poised for a strong recovery.
**Key Insights:**
* Abercrombie & Fitch’s first-quarter sales rose 7% to $792 million, driven by a 6% increase in comparable sales.
* The company raised its full-year sales outlook to 2% to 4%, up from its previous forecast of 1% to 3%.
* Abercrombie & Fitch also raised its full-year earnings outlook to a range of $1 to $1.10 per share, up from its previous guidance of 90 cents to $1 per share.
* The company’s shares rose more than 10% in after-hours trading following the news.
* Abercrombie & Fitch has been struggling in recent years but is taking steps to turn around its business, including closing stores, cutting costs, and revamping its product line.
* The company’s first-quarter results show that these efforts are starting to pay off, and the raised full-year outlook is a sign that it is becoming more confident in its turnaround plan..
