Abercrombie & Fitch Q3 Sales Surge 20%, Raises Full-Year Outlook

Despite strong quarter, holiday season forecast fails to impress Wall Street, leading to stock price drop.

Abercrombie & Fitch's Q3 sales surge 20% due to a strong back-to-school shopping season and growth at both its Abercrombie and Hollister brands.
The company raises its full-year outlook, expecting net sales to grow between 12% to 14%, up from a previous outlook of around 10%.
Abercrombie's operating margin is expected to be around 10%, up from its previous range of 8% to 9%.
Despite the strong quarter, Abercrombie's forecast for the holiday season failed to impress Wall Street, leading to a drop in its stock price.
Abercrombie's transformation into an inclusive retailer continues to resonate with consumers, leading to its stock soaring this year.