Abercrombie & Fitch Co's quarterly sales beat Wall Street expectations on Tuesday, as consumers working or attending classes from home due to the COVID-19 pandemic shopped online for the retailer's apparel, sending its shares up about 8%.
The retailer also said it would exit four more of its European flagship locations by the end of January 2021 and has recognized a pre-tax gain of $8 million in the current quarter.
Apparel retailers are ramping up investments in their digital platforms to combat declining store traffic as customers shift to online shopping due to the pandemic, tapping popular social media influencers, and adding options such as curbside pickups.
Abercrombie's digital sales, which jumped 43%, were also boosted by demand for its Gilly Hicks brand's activewear and loungewear as customers staying at home turn to comfortable clothing.
Net sales fell to $819.7 million in the third quarter ended Oct. 31, from $863.5 million a year ago, but beat analysts' average estimate of $739.36 million, according to Refinitiv IBES data.