Shares of Abercrombie & Fitch Co. (ANF) are surging 20.96% in pre-market trading on Tuesday following the company's impressive third-quarter earnings report and raised full-year guidance. The apparel retailer's strong performance, particularly in its Hollister brand, has sparked renewed investor confidence despite ongoing economic uncertainties.

For the third quarter ended November 1, 2025, Abercrombie & Fitch reported net sales of $1.29 billion, up 7% from the same period last year and slightly beating analyst estimates of $1.28 billion. The company's adjusted earnings per share came in at $2.36, surpassing Wall Street expectations of $2.17. This strong performance was largely driven by Hollister brands, which saw a remarkable 16% growth, offsetting a 2% decline in Abercrombie brands.

In light of these results, Abercrombie & Fitch has narrowed and raised its full-year outlook. The company now expects net sales growth of 6% to 7%, up from its previous forecast of 5% to 7%. Additionally, it raised the lower end of its earnings per share guidance to $10.20-$10.50, compared to the earlier projection of $10.00-$10.50. This optimistic outlook comes despite the company facing approximately $90 million in tariff expenses for the full year.

CEO Fran Horowitz commented on the results, stating, "We achieved three years of consecutive quarterly sales growth, delivering record third quarter net sales, with 7% growth to last year." The company's performance demonstrates its ability to navigate challenges in the retail sector, including economic uncertainties and changing consumer preferences. As Abercrombie & Fitch enters the critical holiday shopping season, investors appear to be betting on the company's continued momentum and improved profitability.