Surprise! Aeropostale and Abercrombie Are Hot Again

Better-than-expected results and an acquistion send shares soaring

   

Surprise! Aeropostale and Abercrombie Are Hot Again

AbercrombieFitch Exterior 300x225 Surprise! Aeropostale and Abercrombie Are Hot AgainShares of Abercrombie & Fitch (NYSE:ANF) and Aeropostale (NYSE:ARO) rose sharply on Wednesday as the two teen apparel makers each reported good news.

Investors sent Abercrombie shares surging more than 27% after it announced quarterly results that exceeded estimates. The retailer posted earnings of $71.5 million during the third quarter, up from $50.9 million in the same period last year. EPS came in a 87 cents, topping the 59 cents that Wall Street was expecting, Reuters noted.

retail shopping display1 Surprise! Aeropostale and Abercrombie Are Hot Again
Blame Sandy for Sagging Retail Sales

The company reported quarterly sales of $1.17 billion, up 9% over last year as international sales soared 37%.

Abercrombie also said it expects a profit of between $2.85 and $3 a share for 2012. That easily beat the $2.48 a share that analysts had forecast for the year.

Shares of Aeropostale climbed more than 6% on news that the apparel maker had acquired online women’s shoe and clothing retailer GoJane.com. Aeropostale did not reveal financial details of the transaction.


Article printed from InvestorPlace Media, http://investorplace.com/2012/11/surprise-aeropostale-and-abercrombie-are-hot-again/.

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