**Abercrombie & Fitch shares soared 20% in premarket trading on Wednesday after the retailer raised its full-year outlook, citing strong demand for its casual apparel.**.
The company now expects net sales for the full year to be in the range of $3.625 billion to $3.675 billion, up from its previous forecast of $3.575 billion to $3.625 billion. Comparable sales are now expected to increase 2% to 4%, compared to the previous guidance of a 1% to 3% increase..
Gross margin is now expected to be in the range of 59.0% to 59.5%, up from the previous guidance of 58.5% to 59.0%. Operating income is now expected to be in the range of $315 million to $335 million, up from the previous guidance of $290 million to $310 million..
Diluted earnings per share are now expected to be in the range of $3.30 to $3.50, up from the previous guidance of $3.00 to $3.20..
The company attributed the improved outlook to strong demand for its casual apparel, particularly among younger consumers. Abercrombie & Fitch has been investing in its digital business and expanding its product offerings in recent years, which has helped to drive growth..
Analysts were普遍 optimistic about the company’s revised outlook..
