Upscale casual wear retailer Abercrombie & Fitch Co. today reported a 52% jump in its earnings, driven by a double-digit increase in sales and favorable changes in forex rates. For the quarter, comparable sales increased 9%, with Hollister up 11% and Abercrombie up 5%.
On an adjusted basis, earnings per share for the quarter were $1.38, compared to $0.75 per share a year ago. Additionally, forex rate benefit helped the company more than double its fourth quarter operating income to $140.3 million from $72 million a year ago.
The teen clothing retailer expects fiscal 2018 net sales and comparable sales to increase in low-single digits. The company also forecasts that the changes in foreign currency exchange rates would benefit net sales by about $50 million and operating income by about $15 million, net of hedging.