ANF Stock Forecast & Price Target

Abercrombie & Fitch Co. demonstrated strong performance in its third-quarter results, with total sales increasing by 6.8% year-over-year to $1.291 billion, surpassing market expectations and aligning closely with internal estimates. The company achieved notable growth in its Hollister brand, which saw comparable sales rise by 15%, significantly exceeding the guidance of 5%-7% for the period. This growth trajectory was complemented by improved average unit retail (AUR) performance due to reduced promotional activity, indicating a positive trend in consumer demand and pricing power.

Abercrombie & Fitch reported a decline in A&F brand sales by 2.0% year-over-year, contrasting sharply with a notable previous year increase of 15.0%, while Hollister experienced a robust 16.3% growth. The gross margin for the third quarter contracted by 260 basis points to 62.5%, falling short of estimates and negatively impacted by tariffs, which accounted for a 210 basis point reduction. Furthermore, projections indicate flat year-over-year sales for A&F in the upcoming fourth quarter, with a slight decrease in expected earnings per share forecasted for FY25 from the previous year.