More importantly — in a sign that consumers are responding to its redesigned merchandise and new brand positioning — the company's sales improved despite fewer and less aggressive promotions during the quarter.
"We believe Abercrombie & Fitch's momentum is sustainable," said Stifel Nicolaus analyst Richard Jaffe, following the report.
Both the Abercrombie and Hollister labels have been making big changes as they fight to get teens back into their stores. The strategy includes reducing the amount of its assortment, making its stores brighter and easier to navigate. Its marketing plan is also less driven by sex appeal.
Abercrombie & Fitch Executive Chairman Arthur Martinez said the company's third-quarter results are the "strongest validation yet" that these initiatives are taking hold.