Surprise! Aeropostale and Abercrombie Are Hot Again

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

   

Shares 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.

Blame Sandy for Sagging Retail Sales
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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