Abercrombie & Fitch (NYSE: ANF), the clothing retailer, narrowed its net loss in its fiscal first quarter to beat Wall Street pessimistic estimates, helped by sales of its Hollister clothing line.
The hip retailer posted a net loss of US$0.56 per share, which was better than Wall Street’s average estimate of a loss of US$0.77 and also lower than its US$0.91 loss in the year-ago quarter.
Net sales in the quarter ending on May 5 came to US$730.9mln, which zipped past analysts’ expectations of US$696.65mln.
In pre-market trade, Abercrombie shares jumped 6.5% to US$25.40.
Hollister contributed US$423.6mln to the net sales figure while Abercrombie’s net sales accounted for US$307.3mln of the total. Comparable sales figures were up 6% at Hollister and 3% at Abercrombie in the quarter.
The company plans to open 13 Hollister and nine Abercrombie stores during this fiscal year. It is also set to shut up to 60 stores in the US over the same period.
Abercrombie ended the quarter with US$592mln in cash and cash equivalents and gross borrowings under its term loan agreement of US$253.3mln. Total inventory amounted to US$405.1mln.