Abercrombie reports a narrower loss

Associated Press

NEW YORK

Abercrombie & Fitch Co. reported a narrower second-quarter loss Thursday than analysts had expected, powered by its surf-inspired Hollister brand. Total revenue also topped Wall Street’s estimates, and the New Albany, Ohio-based company’s shares soared nearly 16 percent.

The report was an encouraging sign of where the company stood as it headed into the critical stretch of the back-to-school shopping season and comes more than a month after A&F announced that it had terminated talks with potential buyers.

Like many teen retailers, A&F has struggled to bring back shoppers since the Great Recession. Younger shoppers are spending more online and less at malls, and they have been gravitating more toward fast fashion retailers such as H&M. In the last year or so, Aeropostale Inc., American Apparel Inc. and Wet Seal have filed for bankruptcy.

American Eagle Outfitters had an advantage over A&F heading into the back-to-school period. It’s posted a string of quarterly sales increases as its retooled denim choices have pulled in teens. Its second-quarter profits and sales beat Wall Street expectations, and revenue at established stores rose 2 percent, helped by explosive growth from its Aerie lingerie brand.

Abercrombie has tried to tweak its brand to attract new shoppers. It dumped sexy ads and updated fashions. It’s closed almost 400 stores since 2010 and plans to close 60 this year. And it promoted Fran Horowitz from president and chief merchandising officer to CEO earlier this year.

Horowitz told The Associated Press on Thursday that shoppers are still looking for discounts, but she says she’s pleased with the performance at Hollister.