Shares of Abercrombie & Fitch Co. surged 20% Thursday as the retailer posted stronger-than-expected sales growth for the latest period and reduced the number of stores it plans to close in the current fiscal year.

The apparel-and-accessories retailer said it expects to close 40 stores by the end of its fiscal year instead of an estimated 60 stores, based on stronger performance across its brands and efforts to renegotiate leases with landlords. Those 40 stores are mainly in the U.S., the company said.

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