When Abercrombie & Fitch Co. (NYSE: ANF) reported its most recent quarterly results before the markets opened on Thursday, the lifestyle retailer posted $0.23 in earnings per share (EPS) and $698.3 million in revenue. Consensus estimates had called for a net loss of $0.83 per share and revenue of $658.44 million, while the fiscal second quarter of last year reportedly had earnings of $0.48 per share and $841.1 million in revenue.

During the most recent quarter, net sales decreased 17% year over year, while comparable sales increased 56%.

At the same time, digital revenue increased by 56% to $386 million, expanding the retail chain’s gross profit rate by 140 basis points and leverage operating expense, resulting in robust operating margin improvement.

In terms of its segments, Abercrombie & Fitch reported that Hollister net sales decreased 15% year over year to $429.2 million and Abercrombie net sales decreased 20% to $269.1 million.

Management noted that the company ended the quarter with roughly $1.1 billion of liquidity, reflecting $187 million of operating cash flow generated in the second quarter. On the books, cash and cash equivalents totaled $767 million at the end of the quarter, versus $671 million at the end of the previous fiscal year.

Looking ahead to the fiscal third quarter, the company expects to see net sales down in the range of 15% to 20%. The company would not provide any additional guidance, citing uncertainty regarding COVID-19. Consensus estimates call for a net loss of $0.02 per share and $800.5 million in revenue for the quarter.

Abercrombie & Fitch stock traded up about 15% on Thursday, at $12.87 in a 52-week range of $7.42 to $18.83. The consensus price target is $12.25.

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