Overseas Growth Lifts A&F to Fatter Profits

Preppy teen clothing seller Abercrombie & Fitch Co. said Tuesday that higher international revenue and improving results in the U.S. helped its third-quarter net income rise 29 percent.

Net income for the quarter rose to $50 million, or 56 cents per share. That compares to $38.8 million, or 44 cents per share, last year and is higher than the 51 cents per share analysts expected, according to a poll by Thomson Reuters.

Revenue rose nearly 18 percent to $885.8 million from $753.7 million. Analysts expected revenue of $879.5 million.

Revenue in stores open at least on year rose 7 percent. The figure is a key measure of a retailer’s health because it excludes stores that open and close during the year. Revenue in stores open at least one year rose 8 percent at namesake stores, 2 percent at Abercrombie kids stores and 7 percent at surf-themed Hollister stores.

U.S. revenue rose 8 percent to $721.7 million and international revenue rose 87 percent to $164.1 million.

The preppy New Albany, Ohio, retailer has expanded internationally to offset slower U.S. growth and cut prices to compete with lower-priced rivals.

Average prices fell 11 percent during the quarter, partly offset by lower costs.

International expansion plans continue: Abercrombie expects to open about 20 international mall-based Hollister stores during the year, 11 of which will be in the fourth quarter. It also plans to open its first Abercrombie & Fitch store in Puerto Rico, a Hollister store on Fifth Avenue in New York and its first international Gilly Hicks store, which sells underwear, in the U.K.

NEW ALBANY, Ohio (AP)