Abercrombie & Fitch (NYSE: ANF) reported Q3 EPS of $0.25, $0.03 better than the analyst estimate of $0.22. Revenue for the quarter came in at $878.6 million versus the consensus estimate of $864.65 million.

Comparable sales for the third quarter decreased 1%.

Arthur Martinez, Executive Chairman, said:

"Our third quarter results exceeded our expectations coming into the quarter and provide the strongest validation yet that our initiatives are working. We have seen positive customer response to the actions we have been taking on a number of fronts. We saw continued sequential improvement in comparable sales, led by positive comparable sales for our Hollister brand and across our international business. Our gross margin rate increased substantially year-over-year, as promotional frequency and intensity were moderated. Expense management remains aggressive. As a result, adjusted operating income improved meaningfully on a constant currency basis. Inventories remain well controlled.

We recognize that we still have much to achieve. We remain intensely focused on our strategic initiatives and evolving our brands' positioning and assortments, as well as improving our customer's experience.

As we look ahead in the fourth quarter, there are mixed signals in the sector and we remain cautious; however, we are confident that the work we are doing is laying the foundation for long-term profitability and growth."

Guidance:

For the fourth quarter of fiscal 2015, the company expects:

• Comparable sales to be approximately flat.
  
• Continued adverse effects from foreign currency exchange rates.
  
• Gross margin rate to be approximately flat to last year on a constant currency basis.
  
• Operating expense to be approximately flat to last year after absorbing a provision for the restoration of incentive compensation.
  
• A weighted average diluted share count of approximately 68 million shares, excluding effects of potential share buybacks.

On a full year basis, the company expects the adjusted effective tax rate to be in the mid-to-upper 30s, including discrete benefits relating to the release of a valuation allowance and other discrete tax items recognized through the third quarter. On a go-forward basis, the company expects the annual effective tax rate to be in the upper 30s.

The company expects capital expenditures of approximately $150 million for the full year.

For earnings history and earnings-related data on Abercrombie & Fitch (ANF) click here.