Abercrombie & Fitch raised its annual profit forecast on Tuesday, betting on strong demand for its Hollister dresses and jackets as shoppers snap up in-trend apparel during the crucial holiday season.

The company's shares surged nearly 18%, after it also forecast a strong holiday quarter and beat third-quarter estimates.

The clothing retailer, whose denim jeans sell for $100 on average, has benefited from a strong online presence and resilient spending among affluent consumers despite tariff-driven uncertainties.

"The company's success is being driven by a sharp merchandising strategy and a consumer-centric focus, which have enabled it to maximize full-price sales and deepen customer engagement," said Rachel Wolff, analyst with Emarketer.

Its Hollister brand posted a 15% like-for-li

See Full Page