Teen retailer’s sales strengthen
Abercrombie & Fitch Co. delivered a pleasant surprise to investors: the teen retailer raised its full-year earnings guidance on a strong third-quarter performance. The Ohio-based company reported a 41 percent increase in net income for the third quarter as international, US, and direct-to-consumer sales strengthened. The retailer, which cut prices during the recession, has been working hard to fix problems amid a shifting buying environment. The company has reacted more quickly to runway trends, a move that has resonated with shoppers. It is also cutting back on expansion plans and in June said it was closing 180 US stores.