DOW JONES NEWSWIRES Abercrombie & Fitch Co. (ANF) swung to a bigger-than-expected fiscal first-quarter profit as margins improved on lower average unit costs and international product offerings. Shares were trading up 3.6% at $75.55 premarket. The stock has risen 91% over the past year as of Tuesday's $73.17 close. Sales at the teen-apparel retailer began to recover in 2010, partly driven by international sales, and the company has been gaining market share since it lowered prices. For the quarter ended April 30, Abercrombie reported a profit of $25.1 million, or 28 cents a share, compared with a loss of $11.8 million, or 13 cents, a year earlier. Earnings from continuing operations were 27 cents in the latest quarter. Analysts polled by Thomson Reuters had most recently forecast earnings of 12 cents a share. Gross margin climbed to 65% from 62.7%, reflecting a lower average unit cost, favorable international mix, including foreign currency impact, and other gross margin items, such as a freight benefit. Earlier this month, the company said total sales jumped 22% to $836.7 million, while same-store sales rose 10%. U.S. sales rose 13% to $641 million, international sales rose 64% to $195.7 million, and direct sales rose 32% to $105.8 million. By brand, same-store sales rose 8% for A&F, 11% for Abercrombie Kids and 11% for Hollister. -By Melodie Warner, Dow Jones Newswires; 212-416-2283; melodie.warner@dowjones.com
