Abercrombie & Fitch shares soar after unexpected profit and sales beat

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Abercrombie & Fitch Co. stock soared 9.2% in Thursday premarket trading after the clothing retailer swung to a surprise second-quarter profit and beat sales expectations. Net income totaled $5.5 million, or 9 cents per share, after a loss of $31.1 million, or 48 cents per share, last year. Adjusted EPS was 23 cents. The FactSet consensus was for a loss of 83 cents per share. Sales of $698.3 million were down from $841.1 million last year but also ahead of the FactSet consensus for $658 million. Digital sales rose 56% to $386 million. As of August 1, Abercrombie & Fitch had cash and equivalents of $767 million, and $295 million under a senior-secured asset-based revolving credit facility. Abercrombie & Fitch expects third-quarter net sales to decline in the range of 15% to 20% compared with last year. The company did not provide additional guidance due to the uncertainty associated with COVID-19. Abercrombie & Fitch shares have tumbled 35.6% for the year to date while the S&P 500 index has gained 7.7% for the period.
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