A&F's shares surge on strong 3Q report, upgraded outlook

Abercrombie & Fitch Co.'s shares are surging after the teen retailer raised its full-year earnings guidance on a strong third-quarter performance.

The teen retailer, based in New Albany, Ohio, reported a 41 percent increase in its third quarter net income as international and direct-to- consumer sales strengthened. The company also says that its move to react more quickly to runway trends is also working. Its results beat Wall Street expectations.

The strong quarterly performance is welcome news as A&F has been struggling to sell its preppy jeans and T-shirts when fashion trends are shifting and a rough economy has left teens around the world on tighter budgets.

Shares soared $8.97 or nearly 29 percent, to $40.15 in morning trading Wednesday.