Hollister helps Abercrombie & Fitch post surprise profit

Teen apparel retailer Abercrombie & Fitch Co reported a surprise adjusted quarterly profit, helped by demand for Hollister and Abercrombie Kids brands.

The company's shares rose 13.2 percent in premarket trading.

Once popular for the preppy clothing it sold under the Abercrombie & Fitch brand, the company has been struggling to revive sales as customers move away from its logo-centric apparel.

The company has been offering trendier clothing such as floral prints as it looks to turn around the business.

Comparable sales fell 1 percent in Hollister, a smaller fall than the 4.70 percent decline analysts polled by research firm Consensus Metrix expected.

Revenue fell 8 percent to $817.8 million, its slowest fall in four quarters.

Analysts on average had expected sales of $811.5 million, according to Thomson Reuters I/B/E/S.

Net loss attributable to the company was $810,000, or 1 cent per share, in the second quarter ended Aug. 1, compared with a net profit of $12.9 million, or 17 cents per share, a year earlier.

Excluding items, the company earned 12 cents per share, while analysts expected a loss of 5 cents per share.

Abercrombie & Fitch's shares were trading at $19.70 before the bell on Wednesday. Up to Tuesday's close, the stock had fallen about 40 percent this year.