Abercrombie & Fitch stock rallies on raised outlook

Shares of Abercrombie & Fitch surge around the brand's raised outlook.

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- I want to get to one other retailer that we've been looking at today, Abercrombie and Fitch. So shares of Abercrombie and Fitch also rallying. That stock up double digits this morning. Another retailer reporting a surprise profit earning over $16 million. That's swinging back into the black from a year ago. You're seeing that stock up 23%.

The company also hiked its annual sales forecast. Total sales were up 3% in the quarter. And comp sales also rose 3% So what it looks like is that some of these like specialty retailers are just reaping the benefits of being a specialty retailer right now. Specialty and also like ones that hone in on certain demographics, if you will.

- It does it does seem that way here. The one spot that did not do as well here was Hollister. We have a lot of Abercrombie stands on--

- I know.

- --the staff here. And what they have pointed out is that while Abercrombie, the namesake brand, has really updated its assortment and stayed relevant. Hollister hasn't necessarily and still is very teen focused. And so maybe that's part of what it is. Our armchair retail analysts here who are also happened to be shoppers. So that's something. But I think this really caught a lot of analysts by surprise and investors by surprise as they were looking at these numbers.

Something else, again, I'm looking at the short interest here. In this case, it's not as high as Kohl's. It's about 13% afloat. But, again, here, you're probably getting some short covering that is helping to push those--

- And not your kind of shorts.

[LAUGHS]

- No. Not the mom shorts or whatever it is that are popular right now.

- You wouldn't find that at Abercrombie and Fitch.

- They're kind of--

- The mom shorts?

- The mom shorts are in now. Am I wrong?

- I don't think they are.

- I don't know.

- Oh, they're in.

- They're in. I'm told. [INAUDIBLE] breaking news, the mom shorts are in just like dad shoes, dad sneakers are in.