Abercrombie & Fitch Co. (ANF) released its Q4 and year-end earnings report on Wednesday, which included plans to close up to 40 stores by next February. The store closures will mostly consist of U.S. locations, taking the company to a total of at least 69 brick-and-mortar closings, including the 29 stores shuttered in 2018.

In the last eight years, Abercrombie has closed 475 stores as well as reducing the footprints of its existing stores and revamping their appearance, CNBC reported. The company has been losing ground in the competitive teen market and is looking to overhaul its image with these consumers, the outlet said.

While the exact store locations to close were not mentioned in the company’s conference call with analysts, CEO Fran Horowitz did say it was “carefully evaluating closed stores when appropriate.” The company did say that it will add 85 new store experiences in 2019, including 40 new stores while reducing the overall footprint size of its existing locations. 

More closures may be ahead for Abercrombie as approximately 50 percent of its leases expire over the next few years, CNBC reported.

The company reported a same-store sales growth of 3 percent, up from the 1.5 percent predicted by analysts. Abercrombie also reported net sales of $1.2 billion for Q4, a decline of 3 percent from last year. Full-year sales were $3.6 billion.

"We ended 2018 on a strong note, recording our sixth consecutive quarter and second consecutive full year of positive comparable sales while exceeding $1 billion in annual digital sales,” Horowitz said.

“I am proud of our team and all we have accomplished this year. Most importantly, while delivering on the top-line, we drove gross profit rate improvement and operating expense leverage resulting in 100 basis points of adjusted EBIT margin expansion and a 77 percent improvement in adjusted net income for the full year.

“We continue to keep the customer at the center of everything we do and are excited about the future of our brands. Our transformation initiatives are gaining traction and keeping us on track to deliver our previously disclosed fiscal 2020 targets."

Shares of Abercrombie stock was up 22.15 percent as of 2:36 p.m. EST on Wednesday.