Abercrombie & Fitch’s Third Quarter Profits Surpass Expectations

Abercrombie & Fitch’s Third Quarter Profits Surpass ExpectationsIn April Abercrombie & Fitch announced that it would stop "sexualized marketing" and the company seems to be looking for a turnaround in image and win back its customers. It's working it seems!

The company also said it would change the employee dress code, toning down the music and cologne for a "more pleasurable shopping experience."

On Friday, the upscale retailer of casual apparel reported its sales and profit results that surpassed the expectation of the analysts. Stocks of the company increased twenty five percent or more following the news.

Overall sales were flat in the third quarter, a huge improvement from recent quarters.

Same-store sales were even up 3% at the company's younger-skewing Hollister chain and also increased slightly for Abercrombie & Fitch internationally.

It's an impressive rebound for a company that was once one king of America's shopping malls.

In the past few years, sales slid as the former CEO Mike Jeffries moves did not work well for the American retailer. The retailer's adverts and catalogues often showcased scantily clad models and the shoppers were often "greeted" with very loud music and the
overbearing fragrance of cologne in the stores. All that did not seem to be working for its customers.

One year back Jeffries stepped down and most of the things in the retailer's stores have changed since them which seem to be working in the advantage of the retailer.