11:31 AM EDT, 08/28/2024 (MT Newswires) -- Abercrombie & Fitch ( ANF ) reported stronger-than-expected fiscal second-quarter results while raising its full-year sales growth target, though Chief Executive Fran Horowitz said the apparel retailer is facing an "increasingly uncertain environment."

Revenue rose to $1.13 billion for the three months ended Aug. 3 from $935.3 million a year earlier and topped the $1.09 billion average analyst estimate on Capital IQ. Adjusted earnings per share advanced to $2.50 from $1.08 and beat the $2.22 analysts' view.

"We remain steadfast in executing our global playbook and maintaining discipline over inventory and expenses," Horowitz said in a statement. Shares of Abercrombie & Fitch ( ANF ) tumbled 17% in Wednesday trade.

Comparable store sales were up 18% during the quarter, fueled by a 21% increase at Abercrombie stores and a 15% improvement at Hollister that was buoyed by better-than-expected summer and back-to-school selling, according to the company. Comparable sales increased by double digits across all of Abercrombie & Fitch's ( ANF ) geographic regions.

"The strength of our brand portfolio and improvements we've made in global capabilities resulted in broad-based growth across regions, brands and channels," Horowitz said. "We delivered a strong first half of the year, and we are increasing our full-year outlook."

The retailer now expects full-year sales growth of 12% to 13%. In May, management guided for around 10% growth, which had itself been increased from 4% to 6%. The Capital IQ-polled consensus is for revenue of $4.77 billion in the ongoing year.

For the third quarter, the retailer expects sales to increase by a low double digit from $1.06 billion it reported for the year-ago period. Analysts are modeling for revenue of $1.15 billion for the current period.

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