Abercrombie & Fitch Co. experienced a notable 25% rise in its stock price during premarket trading, buoyed by a strong performance in the first quarter that surpassed market expectations. The retailer posted net sales of $1.10 billion, outstripping the predicted $1.07 billion, and reported adjusted earnings per share of $1.59, ahead of the anticipated $1.39, according to Reuters.

One of the key drivers behind Abercrombie & Fitch's impressive results was the performance of its Hollister brand, which saw a 23% increase in comparable sales. This growth came as younger consumers flocked to the brand for its trendy clothing options, marking a significant jump from a 13% increase in the previous year. The company also revised its annual net income per share forecast to be between $9.50 and $10.50, while slightly raising its expected net sales growth to a range of 3% to 6%.

Abercrombie & Fitch's positive outcomes are attributed to its strategy of introducing new styles and effectively meeting consumer demands. The company's outlook takes into account the impact of tariffs, including a substantial 30% charge on Chinese imports, which amounts to an estimated $50 million in tariff expenses for the year.