A person carries a bag from the Abercrombie & Fitch store on Fifth Avenue in Manhattan, New York City, U.S., February 27, 2017. REUTERS/Andrew Kelly/Files

(Reuters) – Abercrombie & Fitch forecast full-year sales growth above Wall Street expectations on Wednesday, betting on its move to rebrand its stores to suit the tastes of young shoppers, sending its shares up nearly 11 percent.

The company also beat analysts’ estimates for fourth-quarter same-store sales on the strength of its Hollister brand.

The teen-focused apparel maker has been adapting to changing millennial tastes by reworking its image, from dropping its famous logo-emblazoned tees in favor of trendier clothing to giving its once dimly-lit stores a makeover.

Abercrombie projected net sales between $3.66 billion to $3.73 billion in 2019, well above the analysts’ forecast of $3.61 billion, according to IBES data from Refinitiv.

“We continue to keep the customer at the center of everything we do and are excited about the future of our brand,” Fran Horowitz, the company’s chief executive officer, said.

In the quarter ended Feb.2, sales at its stores open at least a year rose 3 percent and beat the average analyst estimate of a 1.47 percent increase.

Excluding one-time items, the company earned $1.35 per share and reported a 3 percent drop in revenue to $1.16 billion.

Analysts on average had expected earnings of $1.15 per share and revenue of $1.13 billion.

Reporting by Nivedita Balu in Bengaluru; Editing by Sai Sachin Ravikumar and Arun Koyyur


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