Company shares increased by 6%, while the company stock dropped 2%, an early trading record low after the company posted lower quarterly sales than expected, and curb its full-year profit expectations.
The company has turned its business around by cutting costs as well as launching trendier apparel that would be appealing to more fashion-conscious teens, while increasing its online presence at the same time.
After years of declining same-store sales, the company said in August it would shed its conventional logo-centric merchandise that was once being sought-after by customers.
On Wednesday, analysts said Abercrombie’s efforts are likely to pay off towards 2015.
Abercrombie customers have been switching to “fast-fashion” stores like H&M, Zara, and Forever 21 that is offering newer styles with lower price tags.
Mike Jeffries, company CEO said the logo headwind is expected to mitigate towards 2015, and to affect the trend absolutely. Comparable sales dropped 8% in the 2013 holiday quarter.
The company cut its adjusted profit expectation to $1.50 to $1.65 a share for the year ending February.
Its adjusted net income dropped 25% to 30.4 million dollars or 42 cents a share during the third quarter ending November 1.
Revenue fell 12% to $911 million, while shares rose 5.1% in $29.26 during the afternoon trading on the NYSE.