Abercrombie & Fitch's Resilience: Strong Sales and Lessons from COVID Pay Off

Abercrombie & Fitch reported strong third-quarter earnings, defying the struggles faced by other retailers. The company saw a surge in sales, particularly among 20-40-year-olds, with its namesake division experiencing a 26% increase in same-store sales. Gross profit margins also rose significantly, and inventories fell by 20%. Abercrombie & Fitch is optimistic about the holiday season and expects low-double-digit sales growth in the fourth quarter. Despite the positive results, the company's stock saw a slight decline.