10:50 AM EST, 11/25/2025 (MT Newswires) -- Abercrombie & Fitch ( ANF ) is projecting holiday-quarter growth after results in the just-ended three-month period topped Wall Street's expectations, with the retailer planning for a record in 2025 sales.

Adjusted earnings in the most recent quarter to Nov. 1 fell to $2.36 a share from $2.47 a year earlier, but that topped the consensus among analysts polled by FactSet for $2.17. Sales were up 7% to $1.29 billion, ahead of analysts' views for $1.28 billion.

Abercrombie & Fitch's ( ANF ) stock surged 29% in Tuesday trading as the company said third-quarter Hollister brand sales jumped 16% to $673.3 million, offsetting a 2% decline in the Abercrombie brand to $617.3 million. The Abercrombie decrease, though, wasn't as steep as the 5% fall in the fiscal second quarter.

"We are fully prepared for the holiday season, having used these past months and quarters to test and learn and build confidence in our assortment and brand positioning," Chief Executive Fran Horowitz said on a call with analysts, according to a FactSet transcript. "We've also continued to keep inventory tight with the goal of reducing promotions and clearance selling to mitigate some portion of the tariff cost."

The retailer narrowed its full-year sales growth outlook to a 6% to 7% range from a 5% to 7% view given previously. Abercrombie & Fitch ( ANF ) expects EPS between $10.20 and $10.50, lifting the bottom end of its prior range from $10. The company is "in reach of record sales for fiscal 2025," Chief Financial Officer Robert Ball told analysts.

In the current quarter, which includes the key holiday season, the company sees net sales growing 4% to 6% from a year earlier, and earnings of $3.40 to $3.70 a share.

Abercrombie & Fitch's ( ANF ) holiday views come even as consumers are expected to take a cautious approach to spending this season, according to the National Retail Federation. The industry group said on Nov. 6 it sees spending this month and the next growing as much as 4.2% over 2024, but that would be slightly slower than the year-ago pace of 4.3% growth.

"We entered the fourth quarter ready to compete with inventory aligned with trend and the right composition," Ball said. "Our brands are in great shape with Abercrombie brands making sequential improvement and Hollister brands taking share with impressive growth."

Price: 82.60, Change: +16.99, Percent Change: +25.89