Struggling teen apparel retailer Abercrombie & Fitch expects its turnaround efforts to bear fruit next year, but has warned of a tough holiday quarter as it discounts heavily.

The company’s shares rose as much as 6 per cent. The stock had fallen 2 per cent to a record low in early trading after Abercrombie reported lower-than-expected quarterly sales and cut its full-year profit forecast.

Abercrombie has been trying to turn around its business by cutting costs, launching trendier merchandise that appeals to fashion-conscious teens and increasing its online presence.

Abercrombie said comparable sales improved slightly in November and during the Black Friday weekend.

Revenue declined 12 percent to $911 million in the third quarter. – (Reuters)