12:28 PM EDT, 05/29/2024 (MT Newswires) -- Shares of Abercrombie & Fitch ( ANF ) soared intraday Wednesday after the company raised its fiscal 2024 revenue and margin guidance following stronger-than-expected top- and bottom-line gains in the first quarter.

The apparel retailer lifted its full-year sales growth guidance to 10% over the $4.3 billion it reported for fiscal 2023. That's up from a prior view of 4% to 6% growth. It now sees operating margin around 14%, an increase from 12% previously expected.

For the second quarter, Abercrombie & Fitch ( ANF ) expects sales to grow in the mid-teens over the $935 million it reported in the same period last year. Shares of the retailer jumped 20% in midday trade.

"We have plenty of hard work ahead, but we believe each of our brands is in a position to deliver for our customers in the summer selling season, keeping us on track to deliver sustainable, profitable growth this year," Chief Financial Officer Scott Lipesky told analysts on a conference call, according to a Capital IQ transcript. In the second quarter, Abercrombie & Fitch ( ANF ) will focus on debt and share repurchases as the primary way to put excess cash to work, he said.

For the fiscal first quarter, revenue advanced to $1.02 billion from $836 million the year earlier and surpassed the $965 million estimate seven analysts surveyed by Capital IQ were modeling for. Comparable sales climbed 21% in the three months ended May 4, reflecting growth of 29% at its namesake Abercrombie brand and 13% at Hollister.

Adjusted earnings per share rose to $2.14 from $0.39 year over year and beat the $1.72 view among eight analysts. Profitability was buoyed by lower cotton and freight costs, as well as reduced discounts and clearance selling, Lipesky said on the call.

"Our outstanding first quarter results reflect the power of our brands and strong execution of our global playbook," Chief Executive Fran Horowitz said in a statement. "We successfully navigated seasonal transitions with relevant assortments and compelling marketing, leveraging agile chase capabilities and inventory discipline, driving sales above our expectations."

The second quarter began with "inventory flexibility and momentum" while the company builds to the back-to-school season later in the quarter, Horowitz said on the call.

Price: 183.26, Change: +30.87, Percent Change: +20.26