Teen apparel retailer Abercrombie & Fitch raised its full-year earnings forecast, citing higher-than-expected sales in the fourth quarter to date and ongoing cost reduction efforts.

Abercrombie shares rose 16 percent to $38.40 in extended trading.

The company said it now expects full-year adjusted earnings of $1.55-$1.65 per share, up from its previous forecast of $1.40-$1.50 per share.