Shares of Abercrombie & Fitch Co. ANF rocketed 18.7% toward a seven-week high in premarket trading Wednesday, after the specialty apparel and accessories retailer reported a surprise fiscal first-quarter profit, amid strength in its Abercrombie brand. For the quarter to April 29, the company swung to net income of $16.6 million, or 32 cents a share, from a net loss of $16.5 million, or 32 cents a share, in the year-ago period. Excluding nonrecurring items, adjusted earnings per share of 39 cents beat the FactSet consensus for a per-share loss of 1 cent. Sales grew 2.9% to $836.0 million, above the FactSet consensus of $814.9 million, as Abercrombie brand sales rose 13.6% to $436.0 million while Hollister brand sales dropped 6.7% to $400 million. Overall same-store sales rose 3%. Looking ahead, the company expects second-quarter sales growth of 4% to 6%, while the FactSet consensus of $814 million implies 1.1% growth. The company raised its fiscal 2023 sales growth guidance to 2% to 4% from 1% to 3%. The stock has tumbled 20.6% over the past three months through Tuesday, while the S&P 500 SPX has gained 4.4%.

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