Abercrombie Net Income Up 34%; Its Stock Sinks

Abercrombie & Fitch Co. said second-quarter earnings rose 34%, spurred by back-to-school sales of jeans and graphic T-shirts. But its shares tumbled as much as 8.2% after the company missed analysts’ profit estimates.

Net income increased to $57.4 million, or 63 cents a share, from $42.9 million, or 44 cents, a year earlier, the New Albany, Ohio-based company said. Sales surged 42% to $571.6 million at Abercrombie, which also operates the Hollister and Ruehl chains.

Comparable-store sales rose 30% as teens heading back to school bought jeans, polo shirts and knit tops. Abercrombie said full-year earnings per share would be less than analysts’ estimates and that denim inventory had surged.

The company was expected to earn 69 cents a share for the period ended July 30, according to the average estimate of 27 analysts surveyed by Thomson Financial.

Shares of Abercrombie fell $5.48 to $55.75 after the markets’ close. The stock declined $2.32 to $61.23 in regular trading.