Abercrombie & Fitch has reduced the number of stores it was due to close by a third, sending share prices soaring.
The fashion retailer said it was due to see low single-digit comparable sales growth for its fourth quarter in a “solid start” to the holiday season, coming well above analysts’ predictions of 0.1 per cent growth.
Meanwhile, comparable sales in its third quarter to November 3 rose three per cent, nearly doubling estimates of a 1.6 per cent increase.
In light of the better-than-expected sales, Abercrombie & Fitch said it would now shut 40 stores by the end of the year instead of 60, thanks to “improved performance and successful lease renegotiations”.
The news sent its share prices jumping 27.5 per cent to $21.82, up from $17.12, and has risen 14.8 per cent on the year.
“We saw a solid start to the holiday season in November with strong double-digit growth on Singles Day on Tmall and a record performance over the peak holiday period from Thanksgiving Day through Cyber Monday,” chief executive Fran Horowitz said during an earnings call with analysts.