Abercrombie & Fitch

ANF

Market cap $3.35B

Abercrombie (ANF) has been one of the stocks most watched by Zacks.com users lately. So, it is worth exploring what lies ahead for the stock.

Abercrombie & Fitch (ANF) reached $73.36 at the closing of the latest trading day, reflecting a -4.62% change compared to its last close.

Abercrombie & Fitch (ANF) closed at $84.48 in the latest trading session, marking a -1.39% move from the prior day.

Abercrombie (ANF) has received quite a bit of attention from Zacks.com users lately. Therefore, it is wise to be aware of the facts that can impact the stock's prospects.

Abercrombie & Fitch posts record Q2 results as Hollister shines with 19% comp growth and growing teen brand momentum.

Abercrombie & Fitch's H1'25 outperformance and raised FY2025 guidance exemplify why the worst may already be over, with FY2026 likely bringing forth easier YoY comparisons. This is especially since the retailer continues to report a rich operating margin of 11.7% in H1'25, up from the 5-year mean of 11%, with it well balancing the decelerating growth profile. Thanks to ANF's rich cash flow generation, the company has been able to report zero debt and accelerated share retirement at -24.3% since FY2019.

Recently, Zacks.com users have been paying close attention to Abercrombie (ANF). This makes it worthwhile to examine what the stock has in store.

I am reiterating my 'buy' rating on Abercrombie & Fitch with an updated price target of $128, implying 47% upside from current levels. The company beat its Q2 FY '25 revenue and earnings expectations, driven by Hollister's strong growth, despite EMEA weakness and deceleration in the Abercrombie brand. Management raised full-year FY '25 guidance for both revenue and earnings, factoring in a $90M tariff impact, but consumer weakness in H2 is a risk.

Abercrombie & Fitch (NYSE: ANF) has experienced a challenging period. The stock has decreased 35% in the past year, whereas the S&P 500 has increased 17%.

Abercrombie & Fitch and Urban Outfitters have nearly identical financials, but URBN trades at a much higher P/E due to perceived short-term growth and diversification advantages. ANF's lower valuation appears to be driven by modest near-term growth estimates, yet history shows such concerns often create buying opportunities in cyclical consumer stocks. ANF's new NFL partnership and proven brand loyalty could drive long-term growth, making its current valuation compelling for investors willing to look beyond short-term noise.