Turns out Abercrombie & Fitch’s solo act is going OK.The youth-oriented apparel company has been plagued with sagging sales over the last four years. And the company’s stock price got hammered back in July after Abercrombie tried, and failed, to find a buyer to sell itself to. With Amazon roiling the retail world these days, A&F needed outside help to turn itself around, said everybody.But on Thursday, the company released a stronger-than-expected earnings report that defied that wisdom, sending its shares soaring 17 percent. A&F is still losing money as a standalone company, but at a slower clip than expected. Perhaps even more promising, its net sales for the second quarter were down just one percent — within reach of possibly turning positive soon.
A&F still has its work cut out to sustain a comeback. Even with Thursday’s gains, which pushed the company’s stock-market valuation above $765 million, the retailer’s stock price remains down almost 90 percent from its peak in April 2007.Other notable details:– Although A&F’s flagship stores have struggled for years, its surfwear brand Hollister has been a bright spot. A&F has stepped up marketing of Hollister to teens this year, highlighted by the launch of a new surfing game for mobile phones.– A&F promoted its merchandising head Fran Horowitz-Bonadies to the CEO post earlier this year. The move eliminated another big source of uncertainty for the company, which had left its top spot vacant for two years while a search dragged on.– Many celebrities have worked for A&F before becoming famous, mostly as models in its ad campaigns. One big exception: In 2011, the company publicly offered Jersey Shore star Michael “The Situation” Sorrentino “a substantial payment” to stop wearing its clothes. The request was part of a feud, including a lawsuit against A&F by Sorrentino. He lost.
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