Dive Brief:

• Abercrombie & Fitch Friday reported that its Q3 profit more than doubled to $42.3 million from $18.2 million year-over-year thanks to fewer promotional sales. Q3 gross margins increased to 63.7% from 62.2% year-over-year.

• Same-store sales decreased 1% overall and revenue fell to $878.6 million from $911.5 million. Same-store sales at Abercrombie & Fitch stores fell 5%, but rose 3% at the company’s Hollister stores, the first time Hollister has seen a same-store sales bump since January 2012.

• Q3 net income increased to $41.9 million, or 0.60 cents per share from $18.2 million, or 0.25 cents per share year-over-year.

Dive Insight:

Abercrombie & Fitch is seeing its pivot away from discounts pay off, according to executive chairman Arthur Martinez.

“Consumers responded to our full-priced products, and we were able to reduce the number and intensity of promotions,” Martinez told the Wall Street Journal. But Martinez also warned that the company and all retailers are facing pressure for promotions over the holidays.

“Given that some of our mall-based competitors have seen inventory back up, our expectation is that the promotional drumbeat is going to be very intense,” he told the Journal.