Abercrombie & Fitch Co., a retailer of clothes for teens and college students, said Wednesday that third-quarter profit rose on higher sales at its Hollister Co. and children's chains.
Net income increased to $117.6 million, or $1.29 a share, from $102 million, or $1.11, a year earlier, the New Albany, Ohio-based company said. Profit beat analysts' estimates by 1 cent. But Abercrombie's fourth-quarter forecast may be lower than some analyst estimates.
All of Abercrombie's divisions posted sales gains of at least 10%, with Hollister and the Abercrombie children's chain outpacing the namesake Abercrombie & Fitch division. The company said it was "well-positioned for success" this holiday season, although retailers including J.C. Penney Co. and Macy's Inc. have lowered forecasts.
"They're not immune to a slowdown in consumer spending, but I think they're much better positioned than other retailers heading into the holiday season," said Steven Baumgarten, an analyst at PNC Wealth Management in Philadelphia.