ANF Stock Forecast & Price Target

Abercrombie & Fitch Co. demonstrated a solid performance in the third quarter, with total sales increasing by 6.8% year-over-year, reaching $1.291 billion, surpassing both market expectations and the company's own estimates. The company's strong AUR growth was driven by reduced promotional activities, which contributed to a positive shift in customer purchasing behavior. Additionally, Hollister's sales significantly outperformed guidance with a 15% increase in comparable store sales, underscoring the brand's continued strength in the competitive retail environment.

Abercrombie & Fitch Co. experienced a year-over-year decline of 2.0% in sales for its Abercrombie & Fitch brand, contrasting sharply with a 15.0% increase the previous year, while overall sales for Hollister increased by 16.3%. The company's gross margin contracted by 260 basis points year-over-year to 62.5%, falling short of estimates and impacted significantly by tariffs, which were responsible for a 210 basis point decline in the quarter. Furthermore, sales for Abercrombie are projected to remain flat year-over-year in the fourth quarter, with FY25 earnings per share expected to drop slightly from the prior forecast, indicating ongoing challenges for the company.