Abercrombie & Fitch shares soar 20% on record sales

By Ovunc Kutlu

ISTANBUL (AA) - Abercrombie & Fitch saw its shares soar almost 20% on Wednesday as the US-based global clothing retailer posted record sales in the most recent quarter.

The company's stock price climbed to as high as $182.56 around 11.15 a.m. EDT on the New York Stock Exchange, adding 19.8% from its previous close of $152.39.

The spike came after the company's net sales came in more than $1 billion for the first time in a single quarter in the firm's history.

Net sales totaled $1.02 billion for the quarter ended May 4 -- a 22% increase from approximately $836 million recorded in the quarter that ended April 29 last year, according to its financial results statement released Wednesday.

"We successfully navigated seasonal transitions with relevant assortments and compelling marketing, leveraging agile chase capabilities and inventory discipline, driving sales above our expectations," said CEO Fran Horowitz.

"Growth was broad-based across regions and brands with Abercrombie brands registering 31% growth and Hollister brands delivering growth of 12%. Strong top-line growth, along with gross profit rate expansion, led to record first quarter operating income and an operating margin of 12.7%," she added.