On Wednesday, apparel retailer Abercrombie & Fitch (ANF) topped Wall Street estimates despite a sharply lower quarterly profit, sending ANF stock up almost 6% in morning trading.
Abercrombie & Fitch said it earned $66.1 million during the fourth quarter, a drop of 58% from $157.2 million during the year-ago period. Adjusted EPS came in at $1.34 a share, easily exceeding the adjusted earnings of $1.03 a share that analysts had forecast, the Wall Street Journal notes.
During the quarter, Abercrombie & Fitch reported sales of $1.3 billion, down 12% from the prior-year quarter. Same store sales dropped 8% during the quarter.
Abercrombie & Fitch said the implementation of its cost-savings program would result in cost reductions of at least $175 million during the current fiscal year.
The retailer also authorized a $150 million share buyback that will occur during the first quarter.
ANF stock closed at $35.99 on Tuesday. Abercrombie & Fitch stock has sunk about 20% over the past year due to disappointing sales and a loss of popularity among young consumers.