Business

Market Movers

Teen retailer’s sales strengthen

The retailer has been working to fix problems amid a shifting buying environment.

Ross D. Franklin/Associated Press/File 2011

The retailer has been working to fix problems amid a shifting buying environment.

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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 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 fashion runway trends, which has resonated with shoppers. It is also cutting back on expansion plans and in June said it was closing 180 US stores.

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