Clothing retailers Abercrombie & Fitch & Express connect with consumers as second quarter results exceed expectations.
Retail earnings from top teen apparel companies Abercrombie and Fitch and Express took Wall Street by surprise. Abercrombie and Fitch posting better than expected quarterly sales results boosted by demand at Hollister and Abercrombie Kids brands. It's welcome news for the retailer that has been struggling to revive sales as customers move away from its logo-centric apparel. By offering trendier, casual looks the chain finally luring back customers. The company earned 12 cents per share, while analysts expected a loss of 5 cents per share. In a statement, the company's Executive Chairman Arthur Martinez said: "Our results exceeded what we signaled in our first quarter earnings call and give us confidence that we are on the right track, although we recognize that we still have much to achieve. Abercrombie and Fitch shares are moving higher in early trading but the stock has fallen 40 percent this year. Rival retailer Express, also beat the street's earnings expectations tripling profit in the second quarter through a better product mix and scaled back promotions. Same stores sales were up 7 percent and the retailer also increasing full year guidance.