Shares of Abercrombie & Fitch shot up 9 percent Wednesday, after the beleaguered teen retailer reported same-store sales that improved from the first quarter.
The company's better-than-expected results, which beat on both the top and bottom lines, were driven by progress in its California-centric Hollister brand and Abercrombie kids.
Overall, Abercrombie's same-store sales declined 4 percent, compared to an 8 percent drop in the first quarter. Management said it expects sales improvement to continue into the second half of the year—particularly in the fourth quarter—as more fashion-forward merchandise continues to flow through the stores.
"Our results exceeded what we signaled in our first-quarter earnings call and give us confidence that we are on the right track, although we recognize that we still have much to achieve," Executive Chairman Arthur Martinez said.