The growth run for Abercrombie is expected to continue during the holiday quarter.

• The company expects a robust holiday shopping season and has increased its full-year guidance.
• The apparel company, which owns Hollister, initially adopted a cautious tone earlier this year but now anticipates finishing its fiscal year on a positive note.
• Despite Mike Jeffries, Abercrombie's former CEO, being arrested for sex trafficking during the quarter, sales remained unaffected.

isn't giving up its crown any time soon.

Despite the recent arrest of its former CEO Mike Jeffries for sex trafficking, the apparel company reported another quarter of double-digit sales growth and results that exceeded expectations.

In its third fiscal quarter, Abercrombie performed better than what Wall Street had predicted, according to a survey of analysts by LSEG.

• Earnings per share: $2.50 vs. $2.39 expected
• Revenue: $1.21 billion vs. $1.19 billion expected

In the three-month period ending November 2, the company's net income was $131.98 million, or $2.50 per share, which is higher than the $96.2 million, or $1.83 per share, recorded in the same period a year ago.

Sales increased by approximately 14% to $1.21 billion from $1.06 billion in the previous year.

Abercrombie is anticipating sales growth of 5% to 7% for the all-important holiday shopping quarter, surpassing the 4.8% growth that analysts had predicted. For the full year, the company expects sales to increase between 14% and 15%, higher than the 12% to 13% range it previously forecasted. This new outlook is higher than the 12.1% growth that analysts had expected, according to LSEG.

Although the guidance was better than anticipated, Abercrombie's shares fell by approximately 3% during premarket trading.

In a news release, CEO Fran Horowitz expressed optimism, omitting the worries she had expressed in the previous quarter about the "uncertain business climate."

Horowitz stated that our company has experienced significant growth across all regions and brands, achieving high levels of performance. We have successfully utilized our regional playbooks and operating model to achieve this growth. Specifically, the Americas region grew 14%, EMEA grew 15%, and APAC experienced an impressive growth of 32% in the last quarter.

Last year, Abercrombie and Hollister experienced growth of 26% and 7%, respectively. This year, their sales growth was comparable, with Abercrombie achieving 11% and Hollister achieving 21%. Horowitz observed that their strong performances were indicative of continued growth.

Under Horowitz's leadership, Abercrombie has emerged as one of the retail industry's top performers. With its strong showing last year, it continues to build on its success.

Horowitz is seeking growth opportunities in international markets while Abercrombie has expanded into new categories, such as its wedding collection and NFL partnership. Additionally, Abercrombie is concentrating on developing its Hollister chain, targeting Gen Z shoppers, and distinguishing itself from its millennial-focused counterpart.

Nearly half of all revenue during the quarter came from Hollister's 14% increase in sales.

After President-elect Donald Trump's victory, it seems that the negative sentiment that had been present in the latter half of the year has dissipated, as retailers prepare for Black Friday and the holiday shopping season.

The election has replaced the cautious tones of Abercrombie and Fitch with bullishness when reporting earnings over the summer.

Since Trump's election, consumer sentiment has improved and analysts are optimistic that the certainty of election results, regardless of the outcome, will positively impact spending.