Teen apparel retailer Abercrombie & Fitch says reducing promotions and containing costs helped profit more than double in the third quarter. Shartia Brantley reports.
Paring promotions and controling costs helped teen apparel retailer Abercrombie & Fitch boost its bottom line. Profit more than doubled during the third quarter, but revenue fell 3.6 percent. Same store sales also declined by 1 percent but that was much less than predicted according to research firm Consensus Metrix. Its Hollister brand and stronger international sales were brightspots. However, Abercrombie & Fitch Executive Chairman Arthur Martinez warned challenges remain: "As we look ahead in the fourth quarter, there are mixed signals in the sector and we remain cautious; however, we are confident that the work we are doing is laying the foundation for long-term profitability and growth." The company expects fourth quarter sales to be flat. Shares surged in early trading. And footwear retailer Foot Locker reported better than expected quarterly profit and sales. Same store sales rose 8.7 percent as demand for new products from Adidas and Nike drove store traffic. Shares spiked in early trading.