Shares of Abercrombie & Fitch (NYSE:ANF) jumped in Wednesday trading after the company announced second-quarter earnings that exceeded its own previously lowered forecast.
The clothing chain announced income of $15.5 million during the quarter, down more than 50% from $32 million in the same period last year.
Sales increased to $951.4 million, up 4% from 2011.
EPS for the quarter was 19 cents, down from 35 cents last year, but beating the high end of the diminished forecast it issued two weeks ago by a penny.
Investors liked the news. Abercrombie & Fitch shares rose about 10%.
The company said that same-store sales fell 11% at its main stores, and 10% at its children’s outlets. Sales were also off 10% at its Hollister stores.
Company officials maintained their earlier, already reduced, profit outlook for the year. They predict earnings of between $2.50 and $2.75 a share for 2012. The company also warned that same-store sales would decline 10% during the remainder of the year.
Analysts say teen shoppers have turned to clothing rivals like Gap (NYSE:GPS), American Eagle Outfitters (NYSE:AEO) and Aeropostale (NYSE:ARO), hurting Abercrombie sales.