Abercrombie & Fitch (ANF - Free Report) closed the most recent trading day at $159.64, moving -1.29% from the previous trading session. The stock trailed the S&P 500, which registered a daily gain of 0.58%. Elsewhere, the Dow gained 0.69%, while the tech-heavy Nasdaq added 1.05%.
Coming into today, shares of the teen clothing retailer had gained 18.74% in the past month. In that same time, the Retail-Wholesale sector gained 4.75%, while the S&P 500 gained 0.97%.
The investment community will be paying close attention to the earnings performance of Abercrombie & Fitch in its upcoming release. The company's earnings per share (EPS) are projected to be $3.01, reflecting a 27.54% increase from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.37 billion, up 5.86% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $11.42 per share and a revenue of $5.52 billion, representing changes of +15.82% and +4.83%, respectively, from the prior year.
Any recent changes to analyst estimates for Abercrombie & Fitch should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. At present, Abercrombie & Fitch boasts a Zacks Rank of #1 (Strong Buy).
In the context of valuation, Abercrombie & Fitch is at present trading with a Forward P/E ratio of 14.16. This denotes a discount relative to the industry average Forward P/E of 14.48.
We can additionally observe that ANF currently boasts a PEG ratio of 1.42. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Retail - Apparel and Shoes industry currently had an average PEG ratio of 1.25 as of yesterday's close.
The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 160, putting it in the bottom 35% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
A strong stock as of late has been Abercrombie & Fitch (ANF - Free Report) . Shares have been marching higher, with the stock up 9.7% over the past month. The stock hit a new 52-week high of $156.72 in the previous session. Abercrombie has gained 20.8% since the start of the year compared to the 0.8% gain for the Zacks Retail-Wholesale sector and the -9.4% return for the Zacks Retail - Apparel and Shoes industry.
What's Driving the Outperformance?The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on August 26, 2026, Abercrombie reported EPS of $2.42 versus consensus estimate of $1.95.
For the current fiscal year, Abercrombie is expected to post earnings of $11.42 per share on $5.52 in revenues. This represents a 15.82% change in EPS on a 4.83% change in revenues. For the next fiscal year, the company is expected to earn $12.41 per share on $5.79 in revenues. This represents a year-over-year change of 8.62% and 4.82%, respectively.
Valuation MetricsAbercrombie may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
Abercrombie has a Value Score of B. The stock's Growth and Momentum Scores are B and D, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 13.3X current fiscal year EPS estimates, which is not in-line with the peer industry average of 14.6X. On a trailing cash flow basis, the stock currently trades at 10.7X versus its peer group's average of 9.2X. Additionally, the stock has a PEG ratio of 1.33. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks RankWe also need to look at the Zacks Rank for the stock, as this is even more important than the company's VGM Score. Fortunately, Abercrombie currently has a Zacks Rank of #1 (Strong Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Abercrombie meets the list of requirements. Thus, it seems as though Abercrombie shares could have a bit more room to run in the near term.
How Does ANF Stack Up to the Competition?Shares of ANF have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Designer Brands Inc. (DBI - Free Report) . DBI has a Zacks Rank of #2 (Buy) and a Value Score of A, a Growth Score of A, and a Momentum Score of F.
Earnings were strong last quarter. Designer Brands Inc. beat our consensus estimate by 36.00%, and for the current fiscal year, DBI is expected to post earnings of $0.52 per share on revenue of $2.91 billion.
Shares of Designer Brands Inc. have gained 5.6% over the past month, and currently trade at a forward P/E of 12.35X and a P/CF of 4.75X.
The Retail - Apparel and Shoes industry may rank in the bottom 62% of all the industries we have in our universe, but there still looks like there are some nice tailwinds for ANF and DBI, even beyond their own solid fundamental situation.
Abercrombie & Fitch (ANF - Free Report) closed the most recent trading day at $151.72, moving +1.32% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.33%. Elsewhere, the Dow saw an upswing of 1.08%, while the tech-heavy Nasdaq appreciated by 0.08%.
Heading into today, shares of the teen clothing retailer had gained 7.04% over the past month, outpacing the Retail-Wholesale sector's gain of 0.37% and the S&P 500's gain of 1.41%.
Investors will be eagerly watching for the performance of Abercrombie & Fitch in its upcoming earnings disclosure. The company is expected to report EPS of $3.01, up 27.54% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $1.37 billion, up 5.86% from the prior-year quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $11.42 per share and a revenue of $5.52 billion, signifying shifts of +15.82% and +4.83%, respectively, from the last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Abercrombie & Fitch. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Abercrombie & Fitch currently has a Zacks Rank of #1 (Strong Buy).
Valuation is also important, so investors should note that Abercrombie & Fitch has a Forward P/E ratio of 13.11 right now. This signifies a discount in comparison to the average Forward P/E of 14.08 for its industry.
One should further note that ANF currently holds a PEG ratio of 1.31. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Retail - Apparel and Shoes industry had an average PEG ratio of 1.18.
The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 153, placing it within the bottom 38% of over 250 industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
Abercrombie & Fitch (ANF - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.
Over the past month, shares of this teen clothing retailer have returned +7%, compared to the Zacks S&P 500 composite's +2.1% change. During this period, the Zacks Retail - Apparel and Shoes industry, which Abercrombie falls in, has gained 7.7%. The key question now is: What could be the stock's future direction?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Revisions to Earnings EstimatesHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
Abercrombie is expected to post earnings of $3.01 per share for the current quarter, representing a year-over-year change of +27.5%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.
For the current fiscal year, the consensus earnings estimate of $11.42 points to a change of +15.8% from the prior year. Over the last 30 days, this estimate has remained unchanged.
For the next fiscal year, the consensus earnings estimate of $12.41 indicates a change of +8.6% from what Abercrombie is expected to report a year ago. Over the past month, the estimate has remained unchanged.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #1 (Strong Buy) for Abercrombie.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue GrowthEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
For Abercrombie, the consensus sales estimate for the current quarter of $1.37 billion indicates a year-over-year change of +5.9%. For the current and next fiscal years, $5.52 billion and $5.79 billion estimates indicate +4.8% and +4.8% changes, respectively.
Last Reported Results and Surprise HistoryAbercrombie reported revenues of $1.27 billion in the last reported quarter, representing a year-over-year change of +4.8%. EPS of $2.42 for the same period compares with $2.32 a year ago.
Compared to the Zacks Consensus Estimate of $1.24 billion, the reported revenues represent a surprise of +1.94%. The EPS surprise was +24.1%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates three times over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Abercrombie is graded B on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Abercrombie. However, its Zacks Rank #1 does suggest that it may outperform the broader market in the near term.
Abercrombie & Fitch Company (NYSE:ANF – Get Free Report) shares crossed above its two hundred day moving average during trading on Wednesday. The stock has a two hundred day moving average of $103.91 and traded as high as $150.87. Abercrombie & Fitch shares last traded at $149.5550, with a volume of 1,356,738 shares changing hands.
Analysts Set New Price Targets ANF has been the subject of a number of research reports. Wall Street Zen upgraded Abercrombie & Fitch from a “hold” rating to a “buy” rating in a report on Saturday, September 12th. JPMorgan Chase & Co. increased their target price on shares of Abercrombie & Fitch from $110.00 to $126.00 and gave the stock a “neutral” rating in a report on Tuesday, August 18th. Morgan Stanley boosted their price target on Abercrombie & Fitch from $87.00 to $134.00 and gave the stock an “equal weight” rating in a research report on Thursday, August 27th. UBS Group raised their target price on shares of Abercrombie & Fitch from $153.00 to $185.00 and gave the company a “buy” rating in a research note on Thursday, August 27th. Finally, The Goldman Sachs Group set a $160.00 target price on shares of Abercrombie & Fitch in a research report on Thursday, August 27th. Two investment analysts have rated the stock with a Strong Buy rating, seven have issued a Buy rating and six have given a Hold rating to the company’s stock. According to data from MarketBeat, the company has an average rating of “Moderate Buy” and an average target price of $155.38.
View Our Latest Research Report on Abercrombie & Fitch
Abercrombie & Fitch Trading Down 0.9% The firm has a 50-day simple moving average of $132.64 and a two-hundred day simple moving average of $103.91. The company has a market capitalization of $6.35 billion, a price-to-earnings ratio of 12.80, a P/E/G ratio of 1.32 and a beta of 1.02. Abercrombie & Fitch (NYSE:ANF – Get Free Report) last issued its quarterly earnings data on Wednesday, August 26th. The apparel retailer reported $4.17 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.99 by $2.18. The business had revenue of $1.27 billion during the quarter, compared to analysts’ expectations of $1.25 billion. Abercrombie & Fitch had a return on equity of 33.52% and a net margin of 10.03%. The company’s revenue for the quarter was up 4.8% on a year-over-year basis. During the same quarter in the previous year, the firm posted $2.91 EPS. Abercrombie & Fitch has set its Q3 2026 guidance at 2.900-3.200 EPS and its FY 2026 guidance at 13.100-13.600 EPS. Equities research analysts anticipate that Abercrombie & Fitch Company will post 11.42 EPS for the current year.
Insider Activity In other news, COO Scott Lipesky sold 10,000 shares of Abercrombie & Fitch stock in a transaction that occurred on Monday, August 10th. The shares were sold at an average price of $115.00, for a total transaction of $1,150,000.00. Following the completion of the transaction, the chief operating officer directly owned 152,534 shares of the company’s stock, valued at $17,541,410. The trade was a 6.15% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Kenneth Robinson sold 800 shares of the firm’s stock in a transaction on Friday, August 28th. The shares were sold at an average price of $149.69, for a total transaction of $119,752.00. Following the sale, the director owned 7,169 shares in the company, valued at approximately $1,073,127.61. This represents a 10.04% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 72,800 shares of company stock valued at $9,595,392 in the last quarter. Company insiders own 2.33% of the company’s stock.
Hedge Funds Weigh In On Abercrombie & Fitch A number of hedge funds have recently bought and sold shares of ANF. Bbfit Investments PTE Ltd. purchased a new position in Abercrombie & Fitch during the fourth quarter valued at $205,539,000. Arrowstreet Capital Limited Partnership raised its position in shares of Abercrombie & Fitch by 41.6% during the 1st quarter. Arrowstreet Capital Limited Partnership now owns 1,310,296 shares of the apparel retailer’s stock worth $119,722,000 after purchasing an additional 384,845 shares during the last quarter. Baird Financial Group Inc. acquired a new position in shares of Abercrombie & Fitch during the 2nd quarter worth about $20,035,000. Dimensional Fund Advisors LP raised its position in shares of Abercrombie & Fitch by 15.0% during the 1st quarter. Dimensional Fund Advisors LP now owns 1,596,177 shares of the apparel retailer’s stock worth $145,823,000 after purchasing an additional 208,709 shares during the last quarter. Finally, BI Asset Management Fondsmaeglerselskab A S lifted its stake in Abercrombie & Fitch by 570.6% in the 1st quarter. BI Asset Management Fondsmaeglerselskab A S now owns 104,936 shares of the apparel retailer’s stock valued at $9,588,000 after buying an additional 89,287 shares in the last quarter.
Abercrombie & Fitch Company Profile (Get Free Report)
Abercrombie & Fitch Co is a global specialty retailer of apparel, accessories and personal-care products. The company operates a portfolio of lifestyle brands, including Abercrombie & Fitch, abercrombie kids, Hollister and Gilly Hicks, serving customers across a range of age groups and fashion preferences.
Its product offerings include casual clothing, denim, dresses, intimates, sleepwear, activewear, swimwear, footwear, accessories and fragrances. The company sells its merchandise through branded retail stores, e-commerce websites and other digital channels, with operations serving customers in North America, Europe, Asia and other international markets.
Founded in 1892 as a sporting-goods store in New York City, Abercrombie & Fitch evolved into a lifestyle apparel retailer and has expanded its brand portfolio over time.
See Also Five stocks we like better than Abercrombie & Fitch Tesla Wants to Make Its Own Chips—What Could Go Wrong? IREN Limited’s AI Pivot Gains Traction—But Can Its Data Centers Deliver? PBF Energy’s Stunning Rally Faces a Critical Test Citi Stock Falls Despite Earnings Beat: What Investors Need to Know Receive News & Ratings for Abercrombie & Fitch Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Abercrombie & Fitch and related companies with MarketBeat.com's FREE daily email newsletter.
Abercrombie & Fitch (NYSE:ANF) has room to grow sales and margins as strong brand momentum, firmer pricing and disciplined discounting support its outlook, according to Jefferies, which maintained its 'buy' rating after meeting the retailer’s chief financial officer.
The bank sees the shares as attractively valued at about 11 times forecast fiscal 2027 earnings, with opportunities to outperform expectations if the company sustains its pricing power and promotional discipline.
Abercrombie’s namesake brand grew sales 8% year over year in the second quarter, up from 3% in the first, with gains in knits, wovens and bottoms, improved conversion and more full-price selling.
Hollister, its second brand, lifted second-quarter sales 2% year over year after flat first-quarter sales, with growth accelerating into August as inventory availability caught up with demand around the introduction of larger back-to-school floor sets.
Average unit retail (AUR), the average retail value per unit sold, increased by a mid-single-digit percentage in the second quarter, with lower discounting supporting better-than-expected performance alongside unit sales growth.
The company’s outlook assumes modest AUR growth in the second half, which Jefferies says leaves room for sales and gross margin to outperform if discount discipline continues.
Gross margin expanded by about 850 basis points year over year in the second quarter, including about 790 basis points from tariff refunds, leaving underlying expansion of about 60 basis points despite roughly 100 basis points of tariff expense pressure.
Management expects $20 million in tariff refunds in the third quarter and marketing expenses to remain slightly above 5% of sales, supporting full-year operating margin guidance of 14.5% to 15.0%.
New categories such as footwear and accessories, a Fanatics partnership extending Abercrombie & Fitch (NYSE:ANF)’s National Football League assortment into stadium stores and additional online channels, and a Hollister collaboration with Target are intended to broaden customer reach.
Share repurchases provide another lever for earnings growth, while an enterprise resource planning system completed in March modernizes the infrastructure supporting further expansion.
Abercrombie & Fitch (ANF - Free Report) closed the most recent trading day at $139.22, moving -1.53% from the previous trading session. The stock's performance was behind the S&P 500's daily loss of 0.22%. Meanwhile, the Dow lost 0.66%, and the Nasdaq, a tech-heavy index, lost 0.22%.
The stock of teen clothing retailer has fallen by 6.63% in the past month, lagging the Retail-Wholesale sector's loss of 3.19% and the S&P 500's gain of 1.4%.
Market participants will be closely following the financial results of Abercrombie & Fitch in its upcoming release. The company is forecasted to report an EPS of $3.01, showcasing a 27.54% upward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.37 billion, up 5.86% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $11.42 per share and a revenue of $5.52 billion, signifying shifts of +15.82% and +4.83%, respectively, from the last year.
Investors might also notice recent changes to analyst estimates for Abercrombie & Fitch. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, there's been a 0.25% rise in the Zacks Consensus EPS estimate. As of now, Abercrombie & Fitch holds a Zacks Rank of #1 (Strong Buy).
Looking at its valuation, Abercrombie & Fitch is holding a Forward P/E ratio of 12.38. This represents a discount compared to its industry average Forward P/E of 14.2.
Also, we should mention that ANF has a PEG ratio of 1.24. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Retail - Apparel and Shoes industry had an average PEG ratio of 1.24 as trading concluded yesterday.
The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 88, placing it within the top 36% of over 250 industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
Abercrombie & Fitch (NYSE:ANF – Get Free Report)‘s stock had its “buy” rating restated by research analysts at BTIG Research in a research note issued to investors on Wednesday, Benzinga reports. They presently have a $175.00 price objective on the apparel retailer’s stock. BTIG Research’s target price indicates a potential upside of 25.08% from the company’s previous close.
Several other research firms have also recently weighed in on ANF. Needham & Company LLC raised their price target on Abercrombie & Fitch from $108.00 to $165.00 and gave the company a “buy” rating in a report on Wednesday, August 26th. Morgan Stanley raised their target price on shares of Abercrombie & Fitch from $87.00 to $134.00 and gave the company an “equal weight” rating in a research note on Thursday, August 27th. UBS Group increased their price target on shares of Abercrombie & Fitch from $153.00 to $185.00 and gave the stock a “buy” rating in a report on Thursday, August 27th. Barclays lifted their price objective on shares of Abercrombie & Fitch from $114.00 to $155.00 and gave the stock an “equal weight” rating in a report on Thursday, August 27th. Finally, Citigroup lowered shares of Abercrombie & Fitch from a “buy” rating to a “neutral” rating and upped their target price for the stock from $135.00 to $156.00 in a research report on Thursday, August 27th. Two analysts have rated the stock with a Strong Buy rating, seven have issued a Buy rating and six have given a Hold rating to the company’s stock. According to data from MarketBeat.com, the company has an average rating of “Moderate Buy” and an average price target of $155.38.
Check Out Our Latest Report on ANF
Abercrombie & Fitch Stock Down 1.1% ANF traded down $1.49 during trading hours on Wednesday, hitting $139.91. The stock had a trading volume of 422,594 shares, compared to its average volume of 1,471,575. Abercrombie & Fitch has a 1 year low of $65.45 and a 1 year high of $155.22. The company’s fifty day simple moving average is $127.83 and its 200 day simple moving average is $101.52. The stock has a market cap of $5.94 billion, a PE ratio of 11.99, a price-to-earnings-growth ratio of 1.24 and a beta of 1.02. Abercrombie & Fitch (NYSE:ANF – Get Free Report) last posted its earnings results on Wednesday, August 26th. The apparel retailer reported $4.17 earnings per share for the quarter, topping the consensus estimate of $1.99 by $2.18. The firm had revenue of $1.27 billion during the quarter, compared to the consensus estimate of $1.25 billion. Abercrombie & Fitch had a net margin of 10.03% and a return on equity of 33.52%. The company’s revenue was up 4.8% on a year-over-year basis. During the same quarter last year, the company earned $2.91 earnings per share. Abercrombie & Fitch has set its Q3 2026 guidance at 2.900-3.200 EPS and its FY 2026 guidance at 13.100-13.600 EPS. As a group, equities analysts expect that Abercrombie & Fitch will post 11.42 EPS for the current year.
Insider Activity In other Abercrombie & Fitch news, EVP Gregory J. Henchel sold 30,000 shares of Abercrombie & Fitch stock in a transaction on Friday, August 28th. The stock was sold at an average price of $146.65, for a total value of $4,399,500.00. Following the completion of the sale, the executive vice president owned 33,681 shares of the company’s stock, valued at approximately $4,939,318.65. This trade represents a 47.11% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, EVP Jay Rust sold 5,000 shares of the stock in a transaction on Friday, August 28th. The shares were sold at an average price of $147.50, for a total value of $737,500.00. Following the sale, the executive vice president directly owned 15,651 shares in the company, valued at $2,308,522.50. This trade represents a 24.21% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last three months, insiders have sold 72,800 shares of company stock worth $9,595,392. Corporate insiders own 2.33% of the company’s stock.
Institutional Inflows and Outflows Several hedge funds have recently made changes to their positions in the stock. Timbuktu Capital Management LLC purchased a new position in shares of Abercrombie & Fitch in the 2nd quarter worth $29,000. Caitong International Asset Management Co. Ltd bought a new stake in shares of Abercrombie & Fitch during the 4th quarter valued at about $56,000. Versant Capital Management Inc increased its position in shares of Abercrombie & Fitch by 29.8% during the 2nd quarter. Versant Capital Management Inc now owns 610 shares of the apparel retailer’s stock valued at $55,000 after purchasing an additional 140 shares during the last quarter. Parallel Advisors LLC lifted its stake in shares of Abercrombie & Fitch by 46.7% in the 1st quarter. Parallel Advisors LLC now owns 788 shares of the apparel retailer’s stock worth $72,000 after purchasing an additional 251 shares during the period. Finally, Integrated Wealth Concepts LLC bought a new position in shares of Abercrombie & Fitch in the 2nd quarter worth approximately $86,000.
(Get Free Report)
Abercrombie & Fitch Co is a global specialty retailer of apparel, accessories and personal-care products. The company operates a portfolio of lifestyle brands, including Abercrombie & Fitch, abercrombie kids, Hollister and Gilly Hicks, serving customers across a range of age groups and fashion preferences.
Its product offerings include casual clothing, denim, dresses, intimates, sleepwear, activewear, swimwear, footwear, accessories and fragrances. The company sells its merchandise through branded retail stores, e-commerce websites and other digital channels, with operations serving customers in North America, Europe, Asia and other international markets.
Founded in 1892 as a sporting-goods store in New York City, Abercrombie & Fitch evolved into a lifestyle apparel retailer and has expanded its brand portfolio over time.
Featured Articles Five stocks we like better than Abercrombie & Fitch Penguin Solutions Is Soaring as AI Memory Demand Explodes Alphabet’s Chart Is Coiling—and the Fundamentals May Be Ready to Back It Up Morgan Stanley Is Bullish on Apple—But With a Catch Disney Is Opening the Door to Netflix—and Changing the Streaming Playbook
Receive News & Ratings for Abercrombie & Fitch Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Abercrombie & Fitch and related companies with MarketBeat.com's FREE daily email newsletter.
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.
The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.
Zacks Premium also includes the Zacks Style Scores.
What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.
Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.
Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.
VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.
Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.86% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.
That's where the Style Scores come in.
To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.
As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.
Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Abercrombie & Fitch (ANF - Free Report) Abercrombie & Fitch Co. operates as a specialty retailer of premium, high-quality casual apparel for men, women and kids through a network of approximately 850 stores across North America, Europe, Asia and the Middle East, as well as the e-commerce sites www.abercrombie.com, www.abercrombiekids.com and www.HollisterCo.com.
ANF is a #1 (Strong Buy) on the Zacks Rank, with a VGM Score of B.
It also boasts a Value Style Score of A thanks to attractive valuation metrics like a forward P/E ratio of 12.38; value investors should take notice.
For fiscal 2027, three analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.85 to $11.42 per share. ANF boasts an average earnings surprise of +13.6%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, ANF should be on investors' short list.
Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?
Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Abercrombie & Fitch (ANF - Free Report) .
Abercrombie currently has an average brokerage recommendation (ABR) of 1.87, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 15 brokerage firms. An ABR of 1.87 approximates between Strong Buy and Buy.
Of the 15 recommendations that derive the current ABR, eight are Strong Buy and one is Buy. Strong Buy and Buy respectively account for 53.3% and 6.7% of all recommendations.
Brokerage Recommendation Trends for ANF
Check price target & stock forecast for Abercrombie here>>>
While the ABR calls for buying Abercrombie, it may not be wise to make an investment decision solely based on this information. Several studies have shown limited to no success of brokerage recommendations in guiding investors to pick stocks with the best price increase potential.
Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation.
In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.
Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision.
ABR Should Not Be Confused With Zacks RankAlthough both Zacks Rank and ABR are displayed in a range of 1--5, they are different measures altogether.
Broker recommendations are the sole basis for calculating the ABR, which is typically displayed in decimals (such as 1.28). The Zacks Rank, on the other hand, is a quantitative model designed to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them.
In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.
Furthermore, the different grades of the Zacks Rank are applied proportionately across all stocks for which brokerage analysts provide earnings estimates for the current year. In other words, at all times, this tool maintains a balance among the five ranks it assigns.
Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements.
Should You Invest in ANF?In terms of earnings estimate revisions for Abercrombie, the Zacks Consensus Estimate for the current year has increased 0.2% over the past month to $11.42.
Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason for the stock to soar in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #1 (Strong Buy) for Abercrombie. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Therefore, the Buy-equivalent ABR for Abercrombie may serve as a useful guide for investors.
The “retail is dead” story pushed through every facet of the stock market. Malls were dying, and the brick-and-mortar crowd was on its death bed. Then, something strange happened. There was a split in the road between stores that offered no experience and tried to cut their way to profitability and stores that became a destination while gearing up their omnichannel presence to rival the strongest of online presences. Today’s Bull of the Day is one of those brick-and-mortar stocks that figured it all out.
Today’s Bull of the Day is Zacks Rank #1 (Strong Buy) Abercrombie & Fitch ((ANF - Free Report) ). The company is proving that sometimes the best comeback stories on Wall Street are hiding in plain sight. Remember when Abercrombie was supposed to be dead? The mall was dead. Teen retail was dead. The brand was stale. Amazon was going to eat everybody’s lunch.
Well, somebody forgot to tell Abercrombie. Today, ANF is a Zacks Rank #1 (Strong Buy), and the reason is exactly what I want to see in a Bull of the Day. That’s earnings estimates which are moving in the right direction. The current Zacks Consensus Estimate calls for fiscal 2027 earnings of $13.23 per share. That compares with $9.86 last year. Even better, the current-year estimate has moved 2.8% higher over just the last four weeks.
The Earnings Story Keeps Getting Better
The latest quarter gave analysts plenty of reasons to sharpen their pencils. Abercrombie delivered EPS of $2.42 versus the Zacks Consensus Estimate of $1.95. That’s a 24.1% positive earnings surprise. Revenue came in at $1.27 billion, another beat, and marked the company’s 15th consecutive quarter of sales growth. But there’s more going on here than one earnings beat.
Abercrombie-brand sales increased 8% while comparable sales increased 4%. APAC sales jumped 19%. Management then raised its full-year outlook, calling for roughly 5% sales growth and an operating margin of 14.5% to 15%. That is exactly the sequence bulls want to see: Beat the number. Raise the outlook. Watch the estimates follow.
There’s another piece of this story I like.
Abercrombie repurchased roughly $282 million worth of stock during the first half of the fiscal year, reducing shares outstanding by about 7% from where they started the year. Management now expects at least $500 million of share repurchases for the full year.
They have the flexibility to invest in stores, technology and growth while simultaneously shrinking the share count. That's a pretty good problem to have.
In the latest trading session, Abercrombie & Fitch (ANF - Free Report) closed at $136.36, marking a +1.24% move from the previous day. This change outpaced the S&P 500's 0.2% gain on the day. Meanwhile, the Dow experienced a rise of 0.04%, and the technology-dominated Nasdaq saw an increase of 0.04%.
Shares of the teen clothing retailer witnessed a loss of 1.4% over the previous month, beating the performance of the Retail-Wholesale sector with its loss of 5.49%, and underperforming the S&P 500's loss of 0.35%.
Analysts and investors alike will be keeping a close eye on the performance of Abercrombie & Fitch in its upcoming earnings disclosure. The company is predicted to post an EPS of $3.01, indicating a 27.54% growth compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $1.37 billion, reflecting a 5.86% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $11.42 per share and a revenue of $5.52 billion, demonstrating changes of +15.82% and +4.83%, respectively, from the preceding year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Abercrombie & Fitch. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.25% higher. Abercrombie & Fitch currently has a Zacks Rank of #1 (Strong Buy).
Valuation is also important, so investors should note that Abercrombie & Fitch has a Forward P/E ratio of 11.79 right now. For comparison, its industry has an average Forward P/E of 13.88, which means Abercrombie & Fitch is trading at a discount to the group.
Also, we should mention that ANF has a PEG ratio of 1.18. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Retail - Apparel and Shoes industry was having an average PEG ratio of 1.18.
The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 89, putting it in the top 37% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
Key Takeaways ANF expects about 130 net new store experiences in FY26, including 50 openings and 80 remodels.ANF says FY26 will mark its fifth straight year as a net store opener, with growth weighted to the Americas.ANF's SoHo store is performing above expectations, and elements of the concept may roll out to more stores. Abercrombie & Fitch Co. (ANF - Free Report) continues to strengthen its physical retail footprint as part of its broader growth strategy. For fiscal 2026, the company expects to deliver approximately 130 net new store experiences, including 50 new stores and 80 remodels and rightsizes, against roughly 20 closures. New stores are expected to be relatively balanced across the Abercrombie and Hollister brands and weighted toward the Americas. The initiative reflects ANF’s focus on combining selective new-store openings with modernization of its existing fleet to create more productive and engaging shopping environments.
Management remains confident in the runway for store expansion. ANF noted that 2026 marks its fifth consecutive year as a net store opener, underscoring the consistency of its real estate strategy. Rather than viewing store growth as having a fixed endpoint, management continues to identify opportunities across markets and formats. The recently opened Abercrombie SoHo location has been particularly encouraging, with customer response described as strong and the business performing above expectations. The company plans to incorporate elements of the SoHo concept into additional stores over time.
The store strategy also complements Abercrombie & Fitch’s broader push to expand its reach through digital channels, partnerships and new product categories. Management has emphasized continued investment in owned-and-operated stores and digital businesses while layering in growth from third-party channels. If new locations, remodels and rightsizing initiatives continue to improve the customer experience and support brand momentum, the physical fleet could remain an important contributor to ANF’s longer-term growth. However, execution will be key as the company balances expansion spending with its focus on maintaining healthy profitability and disciplined capital allocation.
ANF’s Zacks Rank & Share Price PerformanceShares of this Zacks Rank #1 (Strong Buy) company have jumped 46% in the past six months, outperforming the industry and the broader Retail-Wholesale sector, which fell 6.1% and 0.7%, respectively.
ANF Stock's Six-Month Price Performance
Image Source: Zacks Investment Research
ANF currently trades at a forward 12-month P/E ratio of 11.15X, which is lower than the industry average of 12.24X and notably below the sector average of 20.89X. This valuation positions the stock at a modest discount relative to both its direct peers and the broader consumer staples sector.
ANF P/E Ratio (Forward 12 Months)
Image Source: Zacks Investment Research
Other Stocks to ConsiderWe have highlighted three other top-ranked stocks in the retail space, namely, FIGS Inc. (FIGS - Free Report) , Deckers Outdoor Corporation (DECK - Free Report) and Boot Barn Holdings, Inc. (BOOT - Free Report) .
FIGS is a direct-to-consumer healthcare apparel and lifestyle brand, and it currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for FIGS’ current financial-year sales indicates growth of 19.7% from the year-ago reported number. The company delivered a trailing four-quarter earnings surprise of 201.8%, on average.
Deckers is a leading designer, producer and brand manager of innovative, niche footwear and accessories. It carries a Zacks Rank #2 at present. DECK delivered a trailing four-quarter average earnings surprise of 15.2%.
The Zacks Consensus Estimate for Deckers’ current fiscal-year earnings and sales indicates growth of 6.8% and 7.9%, respectively, from the year-ago actuals.
Boot Barn operates specialty retail stores in the United States and internationally. At present, it carries a Zacks Rank of 2.
The consensus estimate for Boot Barn’s current fiscal-year sales and earnings implies growth of 15.8% and 23.5%, respectively, from the year-ago figures. BOOT delivered a trailing four-quarter earnings surprise of 11.4%, on average.
Abercrombie & Fitch (ANF - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
Over the past month, shares of this teen clothing retailer have returned -1.4%, compared to the Zacks S&P 500 composite's -0.4% change. During this period, the Zacks Retail - Apparel and Shoes industry, which Abercrombie falls in, has lost 5.6%. The key question now is: What could be the stock's future direction?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Revisions to Earnings EstimatesHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
Abercrombie is expected to post earnings of $3.01 per share for the current quarter, representing a year-over-year change of +27.5%. Over the last 30 days, the Zacks Consensus Estimate has changed +0.8%.
The consensus earnings estimate of $11.42 for the current fiscal year indicates a year-over-year change of +15.8%. This estimate has changed +0.3% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $12.41 indicates a change of +8.6% from what Abercrombie is expected to report a year ago. Over the past month, the estimate has changed +0.9%.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Abercrombie is rated Zacks Rank #1 (Strong Buy).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
For Abercrombie, the consensus sales estimate for the current quarter of $1.37 billion indicates a year-over-year change of +5.9%. For the current and next fiscal years, $5.52 billion and $5.79 billion estimates indicate +4.8% and +4.8% changes, respectively.
Last Reported Results and Surprise HistoryAbercrombie reported revenues of $1.27 billion in the last reported quarter, representing a year-over-year change of +4.8%. EPS of $2.42 for the same period compares with $2.32 a year ago.
Compared to the Zacks Consensus Estimate of $1.24 billion, the reported revenues represent a surprise of +1.94%. The EPS surprise was +24.1%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates three times over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Abercrombie is graded A on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Abercrombie. However, its Zacks Rank #1 does suggest that it may outperform the broader market in the near term.
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company value investors might notice is Abercrombie & Fitch (ANF - Free Report) . ANF is currently sporting a Zacks Rank #1 (Strong Buy) and an A for Value. The stock is trading with P/E ratio of 8.98 right now. For comparison, its industry sports an average P/E of 12.24. Over the last 12 months, ANF's Forward P/E has been as high as 15.83 and as low as 5.99, with a median of 9.26.
We should also highlight that ANF has a P/B ratio of 3.31. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 5.44. ANF's P/B has been as high as 6.85 and as low as 2.50, with a median of 3.69, over the past year.
Finally, we should also recognize that ANF has a P/CF ratio of 6.14. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. ANF's P/CF compares to its industry's average P/CF of 12.10. Over the past 52 weeks, ANF's P/CF has been as high as 13.48 and as low as 4.77, with a median of 6.76.
These are only a few of the key metrics included in Abercrombie & Fitch's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, ANF looks like an impressive value stock at the moment.
Analyst’s Disclosure: I/we have a beneficial long position in the shares of ANF either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
It has been about a month since the last earnings report for Abercrombie & Fitch (ANF - Free Report) . Shares have lost about 7.9% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Abercrombie due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important drivers.
Abercrombie's Q2 Earnings Beat on Tariff RefundsAbercrombie delivered second-quarter fiscal 2026 results that topped expectations. It reported earnings per share (EPS) of $2.42 (Excluding IEEPA Tariffs) and adjusted EPS of $4.17. The Zacks Consensus Estimate is pegged at $1.95. Revenues rose 4.8% year over year to $1.27 billion, beating the consensus estimate of $1.24 billion by 1.9%.
The quarter benefited from record net sales, broad-based regional growth and a strong operating performance. Comparable sales were flat on a constant-currency basis, while both Abercrombie and Hollister brands posted record second-quarter sales.
ANF's Record Sales Drive GrowthAbercrombie reported net sales of $1.27 billion in the second quarter of fiscal 2026, up 5% year over year. The company marked its 15th consecutive quarter of growth, supported by higher sales across regions and brands.
The Americas remained the largest contributor, with sales increasing 5% year over year to $1.02 billion and comparable sales rising 1%. APAC sales climbed 19% to $44.2 million, with comparable sales up 13%, while EMEA sales grew 2% to $202 million despite comparable sales declining 4%.
Abercrombie Brands Lead Portfolio GainsAbercrombie brand generated net sales of $596.8 million, up 8% year over year, with comparable sales increasing 4%. Hollister sales reached $669.9 million, up 2%, although comparable sales declined 3%. We had expected sales to rise 2.1% year over year to $563.7 million for Abercrombie and 4% to $683.1 million for Hollister.
The brand performance highlighted continued strength in the company’s core lifestyle offerings. Management noted that both brands achieved record second-quarter net sales, with Abercrombie brands leading overall growth.
ANF Expands Margins With Refund BenefitANF posted adjusted operating income of $252.7 million, up 50.3% from the year-ago quarter. Adjusted operating margin improved to 19.9% from 13.9%. The company benefited from approximately $100 million of IEEPA tariff refunds, which reduced cost of sales and supported profitability.
Selling expense increased to $444 million, up 18.3% from the year-ago quarter, while general and administrative expense rose to $204.8 million, up 16.8% from the year-ago quarter. Higher investments in stores, marketing and payroll partially offset the benefit from stronger sales and tariff refunds.
ANF Maintains Strong Financial FlexibilityANF ended the quarter with cash and equivalents of $627.7 million and total liquidity of approximately $1.1 billion, including available borrowing capacity under its ABL facility. Inventory stood at $591.7 million compared with $593 million in the prior-year period.
The company continued returning capital to shareholders, repurchasing 2 million shares for approximately $177 million during the quarter. Year to date, ANF repurchased 3.2 million shares for $282 million, reducing shares outstanding by 7% from the beginning of the year.
Abercrombie Raises Fiscal 2026 OutlookAbercrombie raised its fiscal 2026 outlook, now expecting net sales growth of around 5% compared with the prior forecast of 3-5%. The company also increased its operating margin outlook to 14.5-15% from 12-12.5%.
For the fiscal year, ANF expects net income per diluted share of $13.10-$13.60 and share repurchases of at least $500 million. Capital expenditures are projected at around $250 million, while the company continues to plan approximately 30 net store openings, 80 remodels and rightsizes, and 20 closures.
How Have Estimates Been Moving Since Then?Since the earnings release, investors have witnessed a upward trend in estimates review.
The consensus estimate has shifted 7.62% due to these changes.
VGM ScoresAt this time, Abercrombie has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. However, the stock was allocated a score of A on the value side, putting it in the top 20% for value investors.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Abercrombie has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.
Here are three stocks with buy rank and strong value characteristics for investors to consider today, September 25:
Petco Health and Wellness Company, Inc. (WOOF - Free Report) : This pet specialty retailer carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 26.3% over the last 60 days.
Petco Health has a price-to-earnings ratio (P/E) of 9.63, compared with 21.40 for the industry. The company possesses a Value Score of A.
The Hanover Insurance Group, Inc. (THG - Free Report) : This provider of various property and casualty insurance products and services carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 9.7% over the last 60 days.
Hanover Insurance has a price-to-earnings ratio (P/E) of 10.78, compared with 54.30 for the industry. The company possesses a Value Score of A.
Abercrombie & Fitch Co. (ANF - Free Report) : This specialty retailer carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 8% over the last 60 days.
Abercrombie & Fitch has a price-to-earnings ratio (P/E) of 11.58, compared with 22.10 for the S&P 500. The company possesses a Value Score of A.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Learn more about the Value score and how it is calculated here.
Here are five stocks added to the Zacks Rank #1 (Strong Buy) List today:
The Hanover Insurance Group, Inc. (THG - Free Report) : This provider of various property and casualty insurance products and services has seen the Zacks Consensus Estimate for its current year earnings increasing 9.7% over the last 60 days.
Abercrombie & Fitch Co. (ANF - Free Report) : This specialty retailer has seen the Zacks Consensus Estimate for its current year earnings increasing 8% over the last 60 days.
Seadrill Limited (SDRL - Free Report) : This offshore drilling services company has seen the Zacks Consensus Estimate for its current year earnings increasing 27% over the last 60 days.
Provident Financial Holdings, Inc. (PROV - Free Report) : This bank holding company for Provident Savings Bank, F.S.B. has seen the Zacks Consensus Estimate for its current year earnings increasing 17.3% over the last 60 days.
HP Inc. (HPQ - Free Report) : This technology company specializing in computing, printing, and digital solutions has seen the Zacks Consensus Estimate for its current year earnings increasing 8.4% over the last 60 days.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
NEW ALBANY, Ohio, Sept. 24, 2026 (GLOBE NEWSWIRE) -- Abercrombie & Fitch (Abercrombie), a division of Abercrombie & Fitch Co. (NYSE: ANF), announced a partnership between the brand’s activewear brand, YPB (Your Personal Best), and Barry’s, the original high-intensity interval workout studio. The multi-season collaboration brings together Abercrombie’s style authority and Barry’s authentic performance expertise through a collection designed to move seamlessly from workouts to life beyond the studio.
The partnership introduces YPB to Barry’s highly engaged community while also giving Abercrombie customers new ways to incorporate studio-ready activewear into their everyday wardrobes. The first collection, featuring performance fabrics, versatile silhouettes and functional layers, includes six styles for men and 12 styles for women. The collection will be available beginning Thursday, October 1, 2026, at Abercrombie.com and in select Abercrombie stores, followed by Barrys.com and 75 Barry’s locations globally on October 15, 2026.
With fit and design input from Barry’s instructors Jon Herrmann, Amy Harioka and Lacy Mitchell and inspired by Barry’s iconic Red Room, the capsule features bold red accents that reflect the energy of the space, balanced by black and neutral tones that make the pieces easy to wear before, during and after class. The collection reflects how both communities move through their day, balancing performance, versatility and style in pieces made to transition from a workout to what comes next.
The partnership will also come to life through a series of in-person activations designed to integrate YPB directly into the Barry’s community. YPB by Abercrombie will serve as the first official sponsor of Barry’s newly launched Mobile Studio, partnering on a pop-up experience in Austin, Texas, on October 2 and 3, 2026, coinciding with Austin City Limits. Guests will have an opportunity to preview the YPB by Abercrombie x Barry’s collection on-site. The experience will then continue in New York City, where YPB by Abercrombie x Barry’s will take over Barry’s NoHo studio from October 9 through 11, 2026. Guests can sign up for all upcoming classes at Barrys.com and on the Barry’s app.
“At Abercrombie, we’re focused on outfitting our customers for every part of their lives, including the moments when they’re moving, training and feeling their best,” said Corey Robinson, brand president of Abercrombie & Fitch. “Barry’s has built an incredibly engaged community around performance and connection, making this partnership a natural fit for YPB. Working directly with Barry’s instructors helped us create a collection rooted in real workout experience, with the style and versatility our customers expect from Abercrombie.”
“YPB by Abercrombie brings an innovative perspective to activewear, pairing elite performance with the effortless and timeless style Abercrombie is known for,” said J.J. Gantt, Barry’s CEO. “This meaningful collaboration brings together two iconic brands that started with Barry’s instructors playing a role in the design and creation of the pieces, ensuring the Barry’s community can experience high-performance pieces designed to support them both inside and outside the Red Room.”
The YPB by Abercrombie x Barry’s collection comes in women’s styles in sizes XXS–XXL and men’s styles in sizes XS–XXL for tops and bottoms.
About Abercrombie & Fitch:
Abercrombie & Fitch is an effortless, elevated American lifestyle brand, blending heritage and modern style through quality apparel, accessories and fragrance crafted for all of life’s moments. Abercrombie & Fitch is the namesake brand of Abercrombie & Fitch Co. and is sold in more than 300 stores worldwide (including abercrombie kids) and on abercrombie.com globally.
About Barry’s:
Barry's is the original high-energy cardio and strength interval training workout. Launched in 1998 in Los Angeles, it was the original pioneer in the global boutique fitness movement. Since then, it has grown from “The Best Workout in the World,” to become not just a fitness leader, but a community and lifestyle brand with innovative in-studio and digital class modalities, Fuel Bars, retail offerings, and a competitive loyalty program. With over 100 studios spanning 19 countries, plus its digital offering, Barry’s X, Barry’s now brings its global Fit Fam community with its signature Red Room workout experience both virtually and physically. Following the success of the original workout, Barry’s expanded its class offerings to include: LIFT (a 50-minute class focusing on strength training) and RIDE (a 50-minute class offering high-intensity interval training style indoor cycling paired with lifting.) Now a worldwide phenomenon with a cult-like following, Barry’s makes working hard and getting strong, fun. For more information, visit: https://www.barrys.com/.
Abercrombie & Fitch (NYSE:ANF – Get Free Report) and Winmark (NASDAQ:WINA – Get Free Report) are both consumer discretionary companies, but which is the better stock? We will compare the two companies based on the strength of their dividends, earnings, analyst recommendations, risk, profitability, valuation and institutional ownership.
Institutional & Insider Ownership 73.3% of Winmark shares are owned by institutional investors. 2.3% of Abercrombie & Fitch shares are owned by insiders. Comparatively, 10.4% of Winmark shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Profitability This table compares Abercrombie & Fitch and Winmark’s net margins, return on equity and return on assets.
Net Margins Return on Equity Return on Assets Abercrombie & Fitch 10.03% 33.52% 13.05% Winmark 47.09% -99.47% 103.54% Earnings & Valuation This table compares Abercrombie & Fitch and Winmark”s top-line revenue, earnings per share (EPS) and valuation. Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio Abercrombie & Fitch $5.27 billion 1.09 $506.92 million $11.68 11.63 Winmark $86.06 million 11.90 $41.65 million $11.02 25.90 Abercrombie & Fitch has higher revenue and earnings than Winmark. Abercrombie & Fitch is trading at a lower price-to-earnings ratio than Winmark, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations This is a summary of recent recommendations and price targets for Abercrombie & Fitch and Winmark, as provided by MarketBeat.com.
Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score Abercrombie & Fitch 0 5 8 2 2.80 Winmark 0 1 0 0 2.00 Abercrombie & Fitch presently has a consensus target price of $155.38, suggesting a potential upside of 14.43%. Given Abercrombie & Fitch’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Abercrombie & Fitch is more favorable than Winmark.
Risk and Volatility Abercrombie & Fitch has a beta of 0.97, suggesting that its stock price is 3% less volatile than the S&P 500. Comparatively, Winmark has a beta of 0.54, suggesting that its stock price is 46% less volatile than the S&P 500.
Summary Abercrombie & Fitch beats Winmark on 9 of the 15 factors compared between the two stocks.
(Get Free Report)
Abercrombie & Fitch Co. engages in the retail of apparel, personal care products, and accessories. The firm operates through following geographical segments: Americas, EMEA and APAC. The Americas segment includes operations in North America and South America. The EMEA segment includes operations in Europe, the Middle East and Africa. The APAC segment includes operations in the Asia-Pacific region, including Asia and Oceania. The company was founded by David Abercrombie in 1892 and is headquartered in New Albany, OH.
About Winmark (Get Free Report)
Winmark Corporation, a resale company operates as a franchisor for small business in the United States and Canada. The company franchises retail stores concepts that buy, sell and trade merchandise. It also operates middle-market equipment leasing business. In addition, the company buys and sells used clothing and accessories geared toward the teenage and young adult market under Plato’s Closet brand; and operates stores which buys and sells used and new children’s clothing, toys, furniture, equipment, and accessories primarily to parents of children ages infant to 12 years under the Once Upon A Child brand. Further, it buys, sells, trades in, and used and new sporting goods, equipment, and accessories for various athletic activities including team sports, such as baseball/softball, hockey, football, lacrosse, and soccer, as well as fitness, ski/snowboard, golf, and others under the Play It Again Sports brand; and buys and sells used women’s apparel, shoes, and accessories under the Style Encore brand. Additionally, the company buys, sells, trades in, and used and new musical instruments, speakers, amplifiers, music-related electronics, and related accessories under the Music Go Round brand. Winmark Corporation was incorporated in 1988 and is headquartered in Minneapolis, Minnesota.
Receive News & Ratings for Abercrombie & Fitch Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Abercrombie & Fitch and related companies with MarketBeat.com's FREE daily email newsletter.
Key Takeaways Abercrombie & Fitch's shares gained 58.9% in three months, sharply outperforming the industry.Record Q2 sales marked 15 straight quarters of growth, supported by Abercrombie and Hollister momentum.Partnerships, new categories and strong cash generation are expanding ANF's growth opportunities. Abercrombie & Fitch Co. (ANF - Free Report) has witnessed a sharp rally, with its shares rallying 58.9% in the past three months, significantly outperforming the Retail – Apparel and Shoes industry’s decline of 17.2%, the Retail-Wholesale sector’s dip of 3.9% and the S&P 500 index’s rise of 0.1%.
Image Source: Zacks Investment Research
Closing at $138.60 yesterday, ANF stock stands about 10.7% below its 52-week high of $155.22. The company’s shares remain comfortably above their 50-day and 200-day simple moving averages of roughly $115.93 and $99.66, respectively, highlighting the strength of the stock’s medium- and long-term price trend.
The rally has been supported by resilient demand across brands and regions, improving full-price selling, disciplined inventory management and strong earnings execution. Abercrombie & Fitch is also expanding its growth avenues through new categories, partnerships and distribution channels while maintaining a healthy balance sheet and substantial shareholder returns.
What’s Fueling Abercrombie & Fitch's Rally?Abercrombie & Fitch continues to benefit from healthy momentum across its brands and regions. The company delivered record second-quarter sales, marking its 15th consecutive quarter of top-line growth. Abercrombie remained the key growth driver, aided by improving comparable sales, while Hollister continued to build momentum despite a tough year-ago comparison. Strength across the Americas, APAC and parts of EMEA highlights the benefits of the company’s geographically diversified business.
Strong merchandise execution is also supporting performance. Demand remains healthy across categories such as knits, wovens, bottoms and swimwear, while improved conversion and reduced promotional activity are supporting full-price selling. The company’s disciplined inventory-management approach allows it to respond quickly to demand trends, helping maintain healthy sell-through and protect margins. Encouragingly, higher unit sales alongside lower discounts indicate that product assortments continue to resonate well with customers.
ANF is also broadening its growth opportunities through new categories, partnerships and distribution channels. Hollister’s Target collaboration is helping the brand reach new customers and expand beyond apparel, while Abercrombie’s NFL partnership is opening additional distribution opportunities. The company is also seeing encouraging initial demand for footwear and accessories. These initiatives should help diversify the business and expand the addressable market without requiring substantial capital investment.
Meanwhile, solid profitability, strong cash generation and a healthy balance sheet provide additional support. Management continues to return excess cash to shareholders through share repurchases while investing in stores, digital capabilities and technology. The company has also raised its fiscal 2026 outlook following better-than-expected first-half execution and a strong start to the third quarter. Continued brand momentum, disciplined operations and expanding growth avenues bode well for ANF’s performance.
How Have Estimates Shaped Up for ANF?The earnings estimates have moved noticeably higher following the company's strong second-quarter performance and improved outlook. The Zacks Consensus Estimate for the current quarter’s earnings is pegged at $11.42 per share, indicating year-over-year growth of 15.8%. The estimate has increased 8% over the past 30 days.
For the next fiscal year, the consensus estimate for earnings of $12.41 per share suggests year-over-year growth of 8.6% and has risen 8.1% in the past 30 days.
Image Source: Zacks Investment Research
Is ANF's Valuation Attractive?Despite the substantial share-price rally, Abercrombie & Fitch's valuation remains relatively attractive. ANF recently traded at a forward 12-month P/E multiple of 11.51X, below the Retail – Apparel and Shoes industry's average of 11.84X. The multiple is also slightly below ANF's 12-month median of 8.63X.
The valuation discount is notable given the company's improving earnings estimates, strong brand momentum, healthy margins and expanding growth opportunities. However, the rapid appreciation in the share price means investors should continue to watch whether operating performance can keep pace with heightened expectations.
Image Source: Zacks Investment Research
How to Play ANF Stock Now?Abercrombie & Fitch’s underlying business trends remain encouraging, supported by healthy demand across both Abercrombie and Hollister, disciplined inventory management and reduced promotional activity. Strong merchandise execution, improving full-price selling and expansion into new categories and distribution channels provide multiple avenues for sustained growth.
The company’s solid cash generation and healthy balance sheet also provide flexibility to invest in its brands, stores and digital capabilities while returning excess cash to shareholders through share repurchases. Management’s improved fiscal 2026 outlook further reflects confidence in the company’s operating momentum and growth prospects.
Moreover, ANF’s reasonable valuation, favorable earnings estimate revisions and expanding opportunities through partnerships, category extensions and international markets strengthen its investment appeal. ANF currently has a Zacks Rank #3 (Hold).
Key PicksSuperior Group of Companies, Inc. (SGC - Free Report) produces, manufactures and sells promotional products and branded uniforms, and healthcare apparel and accessories in the United States and internationally. At present, SGC carries a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Superior Group of Companies’ current fiscal-year sales and earnings implies growth of 3.1% and 39.1%, respectively, from the year-ago figures. SGC delivered a trailing four-quarter earnings surprise of 90.2%, on average.
Boot Barn Holdings, Inc. (BOOT - Free Report) operates specialty retail stores in the United States and internationally. It has a Zacks Rank of 2 at present. BOOT delivered an earnings surprise of 11.4% in the trailing four quarters, on average.
The Zacks Consensus Estimate for Boot Barn’s current fiscal-year sales and earnings implies growth of 15.7% and 22.5%, respectively, from the year-ago reported figures.
Fossil Group, Inc. (FOSL - Free Report) is involved in designing, marketing and distributing consumer fashion accessories. It also carries a Zacks Rank of 2 at present.
The Zacks Consensus Estimate for Fossil Group’s current fiscal-year earnings suggests growth of 96.7% from the year-ago actuals. FOSL delivered an earnings surprise of 55.2% in the last reported quarter.
Abercrombie & Fitch (ANF - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.
Over the past month, shares of this teen clothing retailer have returned +32.7%, compared to the Zacks S&P 500 composite's -2.9% change. During this period, the Zacks Retail - Apparel and Shoes industry, which Abercrombie falls in, has lost 10.7%. The key question now is: What could be the stock's future direction?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Earnings Estimate RevisionsRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
Abercrombie is expected to post earnings of $3.01 per share for the current quarter, representing a year-over-year change of +27.5%. Over the last 30 days, the Zacks Consensus Estimate has changed +7.6%.
The consensus earnings estimate of $11.42 for the current fiscal year indicates a year-over-year change of +15.8%. This estimate has changed +7.7% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $12.41 indicates a change of +8.6% from what Abercrombie is expected to report a year ago. Over the past month, the estimate has changed +8.1%.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Abercrombie is rated Zacks Rank #1 (Strong Buy).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
For Abercrombie, the consensus sales estimate for the current quarter of $1.37 billion indicates a year-over-year change of +5.9%. For the current and next fiscal years, $5.52 billion and $5.79 billion estimates indicate +4.8% and +4.8% changes, respectively.
Last Reported Results and Surprise HistoryAbercrombie reported revenues of $1.27 billion in the last reported quarter, representing a year-over-year change of +4.8%. EPS of $2.42 for the same period compares with $2.32 a year ago.
Compared to the Zacks Consensus Estimate of $1.24 billion, the reported revenues represent a surprise of +1.94%. The EPS surprise was +24.1%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates three times over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Abercrombie is graded A on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Abercrombie. However, its Zacks Rank #1 does suggest that it may outperform the broader market in the near term.
The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price. Do they really matter, though?
Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Abercrombie & Fitch (ANF - Free Report) .
Abercrombie currently has an average brokerage recommendation (ABR) of 1.87, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 15 brokerage firms. An ABR of 1.87 approximates between Strong Buy and Buy.
Of the 15 recommendations that derive the current ABR, eight are Strong Buy and one is Buy. Strong Buy and Buy respectively account for 53.3% and 6.7% of all recommendations.
Brokerage Recommendation Trends for ANF
Check price target & stock forecast for Abercrombie here>>>
While the ABR calls for buying Abercrombie, it may not be wise to make an investment decision solely based on this information. Several studies have shown limited to no success of brokerage recommendations in guiding investors to pick stocks with the best price increase potential.
Are you wondering why? The vested interest of brokerage firms in a stock they cover often results in a strong positive bias of their analysts in rating it. Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations.
In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.
With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near-term price performance. So, validating the Zacks Rank with ABR could go a long way in making a profitable investment decision.
Zacks Rank Should Not Be Confused With ABRAlthough both Zacks Rank and ABR are displayed in a range of 1--5, they are different measures altogether.
The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them.
In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.
In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks.
There is also a key difference between the ABR and Zacks Rank when it comes to freshness. When you look at the ABR, it may not be up-to-date. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices.
Is ANF a Good Investment?In terms of earnings estimate revisions for Abercrombie, the Zacks Consensus Estimate for the current year has increased 7.7% over the past month to $11.42.
Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason for the stock to soar in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #1 (Strong Buy) for Abercrombie. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Therefore, the Buy-equivalent ABR for Abercrombie may serve as a useful guide for investors.
Abercrombie & Fitch (ANF - Free Report) reached a significant support level, and could be a good pick for investors from a technical perspective. Recently, ANF broke through the 20-day moving average, which suggests a short-term bullish trend.
The 20-day simple moving average is a well-liked trading tool because it provides a look back at a stock's price over a 20-day period. Additionally, short-term traders find this SMA very beneficial, as it smooths out short-term price trends and shows more trend reversal signals than longer-term moving averages.
The 20-day moving average can show signals that are similar to other SMAs as well. If a stock's price is moving above the 20-day, the trend is considered positive. When the price falls below the moving average, it can signal a downward trend.
Shares of ANF have been moving higher over the past four weeks, up 32.7%. Plus, the company is currently a Zacks Rank #1 (Strong Buy) stock, suggesting that ANF could be poised for a continued surge.
Looking at ANF's earnings estimate revisions, investors will be even more convinced of the bullish uptrend. There have been 3 revisions higher for the current fiscal year compared to none lower, and the consensus estimate has moved up as well.
Investors should think about putting ANF on their watchlist given the ultra-important technical indicator and positive move in earnings estimate revisions.
Jay Rust, EVP, Chief HR Officer at Abercrombie & Fitch (ANF -0.41%), reported a sale of 5,000 shares of Class A common stock on Aug. 28, 2026, according to a recent SEC Form 4 filing.
Transaction summaryMetricValueShares sold5,000Transaction value$737,500Post-transaction shares (directly held)15,651Post-transaction value$2.3 millionTransaction value based on SEC Form 4 weighted average sale price ($147.50); post-transaction value based on Aug. 28, 2026, market close ($148.42).
Key questionsWhat was the immediate impact of the transaction on the insider's equity position?
The sale reduced the direct holding from 20,651 shares to 15,651 shares, though Rust remains a stakeholder with a 0.03% ownership interest.How does the execution price align with the market valuation on the date of the trade?
The shares were sold at a weighted-average price of $147.50, slightly below the market close of $148.42 on Aug. 28, 2026.What is the current market value of the remaining direct investment?
Based on the Aug. 31, 2026, market close of $143.08 per share, the remaining 15,651 shares held directly by Rust are valued at approximately $2.2 million.Does the insider maintain other forms of beneficial ownership?
The filing indicates that the total beneficial ownership comprises only the 15,651 shares held directly, as no indirect holdings or derivative securities were reported.Company OverviewMetricValueShare Price (as of market close 2026-08-31)$143.08Market Capitalization$5.9 billionRevenue (TTM)$5.3 billionNet Income (TTM)$536 millionCompany SnapshotAbercrombie & Fitch operates as an omnichannel apparel retailer offering clothing, personal care products, and accessories for men, women, and children across its portfolio of brands, including Abercrombie & Fitch, Abercrombie Kids, Hollister, and Gilly Hicks.The company generates revenue through a diversified distribution model encompassing company-operated retail stores, e-commerce platforms, wholesale partnerships, franchise agreements, and licensing arrangements across the Americas, Europe, the Middle East, Africa, and the Asia-Pacific regions.The company targets style-conscious consumers across multiple demographic segments, from young adults and teenagers to families, through both physical retail locations and digital channels, offering contemporary apparel and lifestyle products.Abercrombie & Fitch is a multinational omnichannel retailer with a market capitalization of $5.9 billion and TTM revenue of $5.3 billion, demonstrating significant scale within the apparel retail sector. The company leverages a multi-brand portfolio strategy to capture diverse customer segments while maintaining operational efficiency through integrated retail and digital distribution networks. ANF maintains a competitive position through brand differentiation, international expansion, and omnichannel retail capabilities that enable seamless customer engagement across geographies and sales channels.
What this transaction means for investorsOn Aug. 28, Rust sold 5,000 shares in a transaction valued at approximately $737,500. While that may initially sound concerning to a shareholder worried that it signals some sort of distress at the company, this transaction appears to be routine. Notably, 5,000 shares were sold, but Rust still holds 15,651 shares, indicating insider alignment with the company's success. In the background, this sale was conducted with the stock price climbing 63.8% over the past 12 months. In comparison, the S&P 500 is up 14.4% over the same period. With that information alone, it isn't surprising that an insider may want to take some of those gains off the table.
For where the stock price is heading next, analysts generally have a favorable outlook. Out of the 15 who cover Abercrombie, 60% rate it a buy, while 40% rate it a hold, according to CNN. From that group, the median one-year price target is $165, representing a potential gain of 17.9% from the price as of this writing, $139.89. The highest price target, $185, would represent a potential gain of 32.2%, while the lowest price target, $134, would represent a potential loss of 4.2%.
Jack Delaney has no position in any of the stocks mentioned. The Motley Fool recommends Abercrombie & Fitch. The Motley Fool has a disclosure policy.
Picture a shopper walking into a store where, only a few years ago, the shelves were packed with clothes that felt like a relic of a dying era. Today, that same customer finds a refreshed brand identity that has successfully pivoted to capture modern style preferences. This is the reality of Abercrombie & Fitch (ANF +4.88%), a legacy specialty retailer that now operates as a digitally led, omnichannel powerhouse. With a current stock price of $136.49 as of Sept. 16, 2026, the company has delivered a 57% return over the past year, reflecting its successful transition into a more resilient, profitable entity.
Our proprietary Hidden Gems scoring system assigns Abercrombie & Fitch an overall Superscore of 80 out of 100, placing it in the Strong category. The Superscore is an AI-powered score that evaluates a company's overall strength by combining financial performance, product market position, technological capabilities, leadership quality, and relative valuation. It represents the unification of all our scores into a single score for public companies, with five rating bands: Exceptional (90-100), Strong (75-89), Above Average (60-74), Average (40-59), and Cautious (0-39).
An 80 places the company in the Top ~11% of every company we score. This analysis serves as one data-driven input to help you weigh the company's operational recovery against its remaining structural risks before you do your own deeper diligence.
Why ANF Has an 80 SuperscoreDisciplined omnichannel growth: The company leverages a massive footprint of more than 900 locations alongside a high-engagement digital platform, allowing it to pool inventory and allocate merchandise based on real-time data.Effective brand repositioning: A successful pivot to a broad, lifestyle-focused identity has allowed the company to regain relevance with a new generation of shoppers.Robust operational recovery: After navigating a significant operational trough in 2022, management improved inventory turnover from 3.0x to 3.3x by mid-2026, demonstrating its ability to execute a disciplined turnaround in a commoditized sector.Proven capital discipline: Management demonstrates clear alignment with shareholders by balancing growth investments in store modernization with aggressive capital returns, including $282 million in share repurchases year-to-date in 2026.Why Is ANF's Superscore Not Higher?Persistent macro volatility: The business model remains sensitive to external cost pressures, as seen in the $90 million tariff-related impact that previously compressed operating margins and forced the company to scramble for mitigation strategies.Highly commoditized sector: Because it operates in the specialty apparel industry, it faces low barriers to entry and intense competition, which prevents it from building a permanent, impenetrable structural moat.Cyclical pricing dependence: The company is susceptible to macroeconomic headwinds, such as shifts in consumer spending.Limited AI integration: The company operates as a traditional apparel retailer without a proprietary data product or an AI-driven value proposition, leaving it vulnerable to disruption from AI-native shopping platforms.The company maintains a high level of capital efficiency. Because it generates significant profit relative to its base of tangible assets, each percentage point of revenue growth compounds into outsize returns, partially offsetting the risks inherent in its cyclical business model.
Hidden Gems Database Scores at a GlanceScoreScore (out of 100)RankSupporting Data PointProduct (1Y)76Top ~28%Consistent sales growth and successful brand reinvention efforts.Product (5Y)76Top ~19%Achieved a 9.1% revenue CAGR from 2022 to 2026.Financial (1Y)68Top ~31%Operating margins moderated to 13.3% in fiscal 2025.Financial (5Y)78Top ~10%Debt-to-equity ratio improved from 1.76 to 0.83 over five years.Leaders82Top ~13%Management handles Q&A with high transparency regarding regional trends.AI13Bottom ~9%The company lacks a standalone data product or retail media network.Valuation Risk83Top ~3%The stock trades at a trailing P/E of 12.4x, which is attractive relative to the company's growth.Is ANF Right For Your Portfolio?This stock warrants a closer look if...
You seek exposure to consumer discretionary stocks that have successfully modernized their omnichannel sales operations.You value companies with disciplined capital allocation strategies that return significant cash to shareholders through repurchases.You may want to keep researching before buying if...
You are uncomfortable with the cyclical nature of apparel retail and the potential for rapid margin compression due to global trade tariffs.You are seeking a technology-driven business model that uses proprietary data or machine learning to build a competitive advantage.The Superscore provides a data-driven signal that should be weighed carefully against your personal financial goals and risk tolerance before you commit capital to an investment.
My 5-year prediction for ANF stockThe stock's 57% climb over the past year may not leave much room for further upside in the near term. Still, the valuation remains attractive enough to deliver satisfactory returns, assuming the company continues to grow earnings.
The company's margins moderated in recent quarters, although in the most recent August-ending quarter, operating margin came in at nearly 20%. However, this was a one-time benefit from tariff refunds.
Importantly, management mentioned that demand is looking healthy across all the company's store brands. For example, the company is benefiting from Hollister's collaboration with Target, which padded the brand's revenue last quarter.
Overall, Abercrombie & Fitch seems to have a successful system in place for keeping an assortment that appeals to shoppers. This is evident in its 5-Year Financial score of 78, which is solid.
But the 1-Year Financial score of 68 reflects moderating margins that the company will need to keep stable to grow earnings. The recent moderation is related to higher freight costs, which are impacting other retailers. Higher operating expenses relative to revenue will be a near-term headwind.
Long-term, the company is focused on reducing promotional activity and investing in tools and technologies to maintain efficiency. Analysts are expecting earnings to grow at an annualized rate of 10% in the coming years. Assuming the company delivers, the stock should perform in line with the market. A rerating to a higher earnings multiple could deliver even better returns over the next five years.
The Hidden Gems Superscore reflects The Motley Fool's proprietary AI-driven evaluation of a company across product, financial, leadership, and valuation pillars as of the article date and may change over time. Performance figures are point-in-time. Past performance does not guarantee future results.
Here are three stocks with buy rank and strong momentum characteristics for investors to consider today, September 16:
Abercrombie & Fitch Co. (ANF - Free Report) : This specialty retailer has a Zacks Rank #1 and witnessed the Zacks Consensus Estimate for its current year earnings increasing 8% over the last 60 days.
Abercrombie & Fitch’s shares gained 59.5% over the last three months compared with the S&P 500’s advance of 2.2%. The company possesses a Momentum Score of A.
Amphenol Corporation (APH - Free Report) : This company that designs and manufactures electronic connectors, interconnect systems and sensors for diverse global industries has witnessed the Zacks Consensus Estimate for its current year earnings increasing 9% over the last 60 days.
Amphenol’s shares gained 15% over the last six months compared with the S&P 500’s advance of 12.9%. The company possesses a Momentum Score of A.
Cracker Barrel Old Country Store, Inc. (CBRL - Free Report) : This company which runs a restaurant and gift store chain has a Zacks Rank #1 and witnessed the Zacks Consensus Estimate for its current year earnings increasing 108.4% over the last 60 days.
Cracker Barrel’s shares gained 2.9% over the last three months compared with the S&P 500’s advance of 2.2%. The company possesses a Momentum Score of A.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Learn more about the Momentum score and how it is calculated here.
Abercrombie & Fitch Co (ANF) Shares Fall 3.9% -- What GF Score of 89 Tells Investors
On September 15, 2026, Abercrombie & Fitch Co ANF shares fell 3.9% to a current price of $135.17. This decline is part of a broader trend, with the stock dropping 10.7% over the past week, while it has risen 25.0% over the past month. The stock has traded in a 52-week range of $65.45 to $155.22.
GF Value™ verdict: ANF is currently priced at $135.17, which is 13.8% above the estimated fair value of $118.79.GF Score™ is 89/100, indicating a strong overall assessment of the company's fundamentals.The most notable signal is insider activity, with insiders selling $50.3 million worth of shares over the past 12 months with no reported buying.Is ANF Overvalued or Undervalued?According to GuruFocus, the GF Value™, which represents an intrinsic value estimate based on historical trading multiples, past business growth, and future performance expectations, indicates that Abercrombie & Fitch Co is currently overvalued. With a GF Value™ of $118.79, the stock is trading at a premium of 13.8%. This suggests a lack of margin of safety for potential investors, as buying at this level may expose them to downside risk if the market adjusts towards its intrinsic value.
The GF Valuation label classifies ANF as "Modestly Overvalued," reinforcing the notion that the current market price exceeds its fair value. Investors looking for a margin of safety may need to wait for a more favorable entry point.
How Does ANF's Valuation Compare to Its History?MetricCurrentHistoricalP/E (TTM)11.6x12.4xForward P/E10.2xN/ACurrently, ANF is trading at a P/E (TTM) of 11.6x, which is 7% below its 5-year median P/E of 12.4x. The forward P/E of 10.2x also indicates a favorable outlook compared to the current earnings multiple. This P/E analysis aligns with the GF Value™ verdict of being overvalued, as the current P/E ratios suggest that the stock is not only above its intrinsic value but also trading lower relative to its historical valuation levels.
What Does ANF's GF Score™ Tell Us?The GF Score™ measures the strength of a company's fundamentals across various categories, including financial strength, profitability, growth, valuation, and momentum. Abercrombie & Fitch Co's GF Score™ of 89/100 illustrates a robust financial standing, with particularly strong indicators in financial health and profitability.
MetricRatingGF Score™89Financial Strength8/10Profitability8/10Growth8/10Valuation6/10Momentum10/10The strong ratings in financial strength, profitability, and growth (all at 8/10) suggest that Abercrombie & Fitch Co is well-positioned financially. However, the valuation rank of 6/10 indicates some concerns regarding its current market price relative to its intrinsic value. The momentum rank of 10/10 reflects positive stock performance, underscoring the significant price appreciation observed over the past year.
What Are Gurus and Insiders Doing with ANF?Currently, 9 gurus hold Abercrombie & Fitch Co shares, with 3 adding to their positions and 7 trimming their holdings in recent quarters. This mixed activity suggests a cautious sentiment among institutional investors.
Insider activity has shown a bearish trend, with insiders selling $50.3 million worth of shares over the past 12 months without any recorded purchases. This pattern could indicate a lack of confidence from company executives regarding the stock's future performance, which prospective investors should keep in mind when considering their investment decisions.
What This Means for InvestorsBased on the GF Value™ analysis, Abercrombie & Fitch Co is currently deemed overvalued, with a market price that exceeds its estimated fair value. Potential investors may want to exercise caution and consider waiting for a more favorable entry point or further developments in the company's fundamentals before committing capital.
For more detailed information, visit the Abercrombie & Fitch Co ANF stock page or explore the GF Value™ page.
Frequently Asked QuestionsWhat is ANF's GF Score™?
ANF has a GF Score™ of 89/100, indicating strong fundamentals across various dimensions of the company's performance.
Is ANF overvalued or undervalued?
ANF is currently overvalued, with a market price that is 13.8% above its GF Value™ of $118.79.
What is ANF's P/E ratio?
ANF's P/E (TTM) is 11.6x, which is 7% below its 5-year median P/E of 12.4x, suggesting it is trading lower relative to its historical valuation.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
Disclosures I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company to watch right now is Abercrombie & Fitch (ANF - Free Report) . ANF is currently holding a Zacks Rank #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 8.98, which compares to its industry's average of 12.18. Over the last 12 months, ANF's Forward P/E has been as high as 15.83 and as low as 5.99, with a median of 9.26.
We should also highlight that ANF has a P/B ratio of 3.31. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. ANF's current P/B looks attractive when compared to its industry's average P/B of 5.37. Over the past year, ANF's P/B has been as high as 6.85 and as low as 2.50, with a median of 3.69.
Finally, investors will want to recognize that ANF has a P/CF ratio of 6.14. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 11.95. Within the past 12 months, ANF's P/CF has been as high as 13.48 and as low as 4.77, with a median of 6.76.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Abercrombie & Fitch is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, ANF feels like a great value stock at the moment.
The Retail-Wholesale group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Has Abercrombie & Fitch (ANF - Free Report) been one of those stocks this year? Let's take a closer look at the stock's year-to-date performance to find out.
Abercrombie & Fitch is a member of the Retail-Wholesale sector. This group includes 190 individual stocks and currently holds a Zacks Sector Rank of #5. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.
The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. Abercrombie & Fitch is currently sporting a Zacks Rank of #1 (Strong Buy).
The Zacks Consensus Estimate for ANF's full-year earnings has moved 7.5% higher within the past quarter. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Based on the most recent data, ANF has returned 15.4% so far this year. In comparison, Retail-Wholesale companies have returned an average of -1.1%. As we can see, Abercrombie & Fitch is performing better than its sector in the calendar year.
Another Retail-Wholesale stock, which has outperformed the sector so far this year, is Ross Stores (ROST - Free Report) . The stock has returned 28.1% year-to-date.
In Ross Stores' case, the consensus EPS estimate for the current year increased 5.3% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down more, Abercrombie & Fitch is a member of the Retail - Apparel and Shoes industry, which includes 39 individual companies and currently sits at #89 in the Zacks Industry Rank. On average, this group has lost an average of 17.8% so far this year, meaning that ANF is performing better in terms of year-to-date returns.
In contrast, Ross Stores falls under the Retail - Discount Stores industry. Currently, this industry has 7 stocks and is ranked #30. Since the beginning of the year, the industry has moved +4.1%.
Investors with an interest in Retail-Wholesale stocks should continue to track Abercrombie & Fitch and Ross Stores. These stocks will be looking to continue their solid performance.
Here are five stocks added to the Zacks Rank #1 (Strong Buy) List today:
Abercrombie & Fitch Co. (ANF - Free Report) : This specialty retailer has seen the Zacks Consensus Estimate for its current year earnings increasing 8% over the last 60 days.
Caterpillar Inc. (CAT - Free Report) : This manufacturer of construction and mining equipment, diesel and natural gas engines, and industrial gas turbines has seen the Zacks Consensus Estimate for its current year earnings increasing 10.1% over the last 60 days.
Advantest Corporation (ATEYY - Free Report) : This technology company providing enterprise software and digital solutions has seen the Zacks Consensus Estimate for its current year earnings increasing 30.9% over the last 60 days.
HP Inc. (HPQ - Free Report) : This technology company specializing in computing, printing, and digital solutions has seen the Zacks Consensus Estimate for its current year earnings increasing 8.4% over the last 60 days.
Ternium S.A. (TX - Free Report) : This steel products company has seen the Zacks Consensus Estimate for its current year earnings increasing 26.7% over the last 60 days.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Scott D. Lipesky, EVP and COO of Abercrombie & Fitch (ANF +0.71%), sold 5,000 shares of Class A common stock on Aug. 28, 2026, according to a recent SEC Form 4 filing.
Transaction summaryMetricValueTransaction value$745,000Shares sold5,000Post-transaction shares (directly held)147,534Post-transaction value$21.9 millionTransaction value based on SEC Form 4 weighted average sale price ($149); post-transaction value based on Aug. 28, 2026, market close ($148.42).
Key questionsWhat was the impact on Lipesky's direct equity position?
The executive sold 5,000 shares, a 3% transaction size relative to his previous stake, while retaining a direct holding of 147,534 shares.How does the transaction price compare to the stock's recent performance?
The execution at $149 per share occurred against a backdrop of 54% share price appreciation for the company over the 12 months ending Aug. 28, 2026.What is the market value of the insider's remaining direct investment?
Based on the $148.42 market close on the transaction date, the executive's remaining direct equity stake is valued at approximately $21.9 million.Company OverviewMetricValueShare Price (as of market close 2026-08-31)$143.08Market Capitalization$6.4 billionRevenue (TTM)$5.3 billionNet Income (TTM)$536 millionCompany SnapshotAbercrombie & Fitch operates as an omnichannel apparel retailer offering clothing, personal care products, and accessories for men, women, and children across its portfolio of brands, including Abercrombie & Fitch, Abercrombie Kids, Hollister, and Gilly Hicks.The company generates revenue through a diversified distribution model encompassing company-operated retail stores, e-commerce platforms, wholesale partnerships, franchise agreements, and licensing arrangements across the Americas, Europe, the Middle East, Africa, and the Asia-Pacific regions.The company targets style-conscious consumers across multiple demographic segments, from young adults and teenagers to families, through both physical retail locations and digital channels, seeking contemporary apparel and lifestyle products.Abercrombie & Fitch is a multinational omnichannel retailer with a market capitalization of $6.4 billion and TTM revenue of $5.3 billion, demonstrating significant scale within the apparel retail sector. The company leverages a multi-brand portfolio strategy to capture diverse customer segments while maintaining operational efficiency through integrated retail and digital distribution networks. ANF maintains a competitive position through brand differentiation, international expansion, and omnichannel retail capabilities that enable seamless customer engagement across geographies and sales channels.
Premium Feature
Moneyball Superscore
79/100
Today's Change
(
0.71
%) $
1.07
Current Price
$
152.50
What this transaction means for investorsOn Aug. 28, Lipesky sold 5,000 shares in a transaction that was valued at approximately $745,000. Digging a little more into the details, however, this doesn't appear to be a sale that should worry shareholders. One reason is that the insider still holds 147,534 shares, indicating his continued alignment with Abercrombie's success.
The other reason this shouldn't cause worry for shareholders is the stock price's performance. Over the last 12 months, Abercrombie shares have climbed nearly 60%, while the S&P 500 is up 17.8% over the same period. With that price run-up, it is natural for an insider to consider taking some gains off the table. With that context, this sale appears largely routine.
For what's ahead, however, price targets suggest that potential gains over the next 12 months may not come as fast and furiously as they have over the previous 12 months. According to CNN, of the 15 analysts who cover the stock, the median price target for the next year is $165. From the price as of this writing, $151.43, reaching $165 would represent a gain of nearly 9%.
Kenneth B. Robinson, Director at Abercrombie & Fitch Co. (ANF +1.18%), sold 800 shares of Class A Common Stock on Aug. 28, 2026, according to an SEC Form 4 filing.
Transaction summaryMetricValueTransaction value$119,752Shares sold800Post-transaction shares (directly held)7,169Post-transaction value$1.06 millionTransaction value based on SEC Form 4 weighted average sale price ($149.69); post-transaction value based on Aug. 28, 2026, market close ($148.42).
Key questionsHow does this transaction relate to the company's recent market performance?
The sale was executed at $149.69 per share, following a 54% one-year return as of the transaction date of Aug. 28, 2026.What is the scale of the insider's remaining direct equity exposure?
Kenneth B. Robinson maintains a direct holding of 7,169 shares, which represents a market value of $1.06 million based on the market close on the date of the transaction.Which brands underpin the company's omnichannel retail operations?
Abercrombie & Fitch Co. operates a portfolio of global brands, including Hollister, Gilly Hicks, Your Personal Best, Abercrombie Kids, and its namesake Abercrombie & Fitch.What is the current insider ownership concentration for the company?
Following this transaction, the total percentage of shares held by insiders is 0.0161% as of the Sept. 1, 2026, filing date.Company OverviewMetricValueShare Price (as of market close 2026-08-31)$143.08Market Capitalization$6.3 billionRevenue (TTM)$5.3 billionNet Income (TTM)$536.0 millionCompany SnapshotAbercrombie & Fitch operates as an omnichannel apparel retailer offering clothing, personal care products, and accessories for men, women, and children across its portfolio of brands, including Abercrombie & Fitch, Abercrombie Kids, Hollister, and Gilly Hicks.The company generates revenue through a diversified distribution model encompassing company-operated retail stores, e-commerce platforms, wholesale partnerships, franchise agreements, and licensing arrangements across the Americas, Europe, the Middle East, Africa, and the Asia-Pacific regions.The company targets style-conscious consumers across multiple demographic segments, from young adults and teenagers to families, through both physical retail locations and digital channels, seeking contemporary apparel and lifestyle products.Abercrombie & Fitch is a multinational omnichannel retailer with a market capitalization of $6.3 billion and TTM revenue of $5.3 billion, demonstrating significant scale within the apparel retail sector. The company leverages a multi-brand portfolio strategy to capture diverse customer segments while maintaining operational efficiency through integrated retail and digital distribution networks. With 43,200 employees globally, ANF maintains a competitive position through brand differentiation, international expansion, and omnichannel retail capabilities that enable seamless customer engagement across geographies and sales channels.
What this transaction means for investorsInvestors should never treat insider sales as the final word on a stock. That's because insiders sell stock for a variety of reasons, including tax withholding and prearranged sales plans. It's always better to examine a company's fundamentals to truly determine how it is performing and whether it is a sensible investment. With that in mind, let's review Abercrombie & Fitch (ANF).
To start, we must review the stock's performance. Since 2021, ANF stock has outperformed the stock market by a significant margin. ANF shares have generated an eye-popping total return of 335%, equating to a compound annual growth rate (CAGR) of 34.2%. The S&P 500, meanwhile, has delivered an 83% total return, with a 12.8% CAGR.
Premium Feature
Moneyball Superscore
79/100
Today's Change
(
1.18
%) $
1.76
Current Price
$
151.43
Turning to the underlying fundamentals, several of ANF's key metrics demonstrate why its stock has soared over the last five years. Since 2021, revenue growth has averaged 8.6%, with overall revenue increasing from $3.7 billion in 2022 to more than $5.3 billion now. The company has successfully sustained its millennial customer base while simultaneously growing its overall market by appealing to Gen Z consumers. In addition to its flagship premium Abercrombie stores, ANF's Hollister offers lower-priced, surf-inspired clothing.
In addition to strong revenue growth, ANF has aggressively reduced its shares outstanding through its share buyback program, supported by steady free cash flow. Total shares outstanding have fallen by 25% since 2021.
On the flip side, some analysts have noted that ANF's organic growth has stalled in recent quarters. This could be a sign of flagging demand, but could also be a temporary blip. In any event, ANF, like all premium retailers, is susceptible to economic downturns.
To sum up, ANF stock has delivered astonishing market-beating returns over the last few years. Investors looking for a consumer stock would be wise to consider the stock.
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.
The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.
It also includes access to the Zacks Style Scores.
What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.
Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.
Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.
VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.
How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.8% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.
That's where the Style Scores come in.
To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.
The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.
A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Abercrombie & Fitch (ANF - Free Report) Abercrombie & Fitch Co. operates as a specialty retailer of premium, high-quality casual apparel for men, women and kids through a network of approximately 850 stores across North America, Europe, Asia and the Middle East, as well as the e-commerce sites www.abercrombie.com, www.abercrombiekids.com and www.HollisterCo.com.
ANF is a #1 (Strong Buy) on the Zacks Rank, with a VGM Score of A.
Momentum investors should take note of this Retail-Wholesale stock. ANF has a Momentum Style Score of A, and shares are up 26.3% over the past four weeks.
For fiscal 2027, two analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.54 to $11.11 per share. ANF boasts an average earnings surprise of +13.6%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, ANF should be on investors' short list.
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
I'm not an investment professional or investment advisor. This article is solely based on my own opinions and research. This is not meant to be a recommendation of the sale or the purchase of any securities. The investments or strategies discussed within this article are of my own personal opinions and commentary. This article has been written for educational and research purposes only. This article does not consider the reader’s financial situation, investment goals, needs, or any other personal circumstances. Investors should conduct their own research and perform their own due diligence before making any investment decisions.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.
Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.
Zacks Premium also includes the Zacks Style Scores.
What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.
Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.
The Style Scores are broken down into four categories:
Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.
Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.
Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.
VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.
Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.8% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.
That's where the Style Scores come in.
You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.
The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.
For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Abercrombie & Fitch (ANF - Free Report) Abercrombie & Fitch Co. operates as a specialty retailer of premium, high-quality casual apparel for men, women and kids through a network of approximately 850 stores across North America, Europe, Asia and the Middle East, as well as the e-commerce sites www.abercrombie.com, www.abercrombiekids.com and www.HollisterCo.com.
ANF is a #1 (Strong Buy) on the Zacks Rank, with a VGM Score of A.
It also boasts a Value Style Score of A thanks to attractive valuation metrics like a forward P/E ratio of 12.92; value investors should take notice.
Two analysts revised their earnings estimate upwards in the last 60 days for fiscal 2027. The Zacks Consensus Estimate has increased $0.54 to $11.11 per share. ANF boasts an average earnings surprise of +13.6%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, ANF should be on investors' short list.
Investors interested in stocks from the Retail - Apparel and Shoes sector have probably already heard of Abercrombie & Fitch (ANF - Free Report) and Tapestry (TPR - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Currently, Abercrombie & Fitch has a Zacks Rank of #1 (Strong Buy), while Tapestry has a Zacks Rank of #3 (Hold). This means that ANF's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
ANF currently has a forward P/E ratio of 12.92, while TPR has a forward P/E of 15.45. We also note that ANF has a PEG ratio of 1.29. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. TPR currently has a PEG ratio of 1.55.
Another notable valuation metric for ANF is its P/B ratio of 4.66. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, TPR has a P/B of 35.79.
These are just a few of the metrics contributing to ANF's Value grade of A and TPR's Value grade of C.
ANF has seen stronger estimate revision activity and sports more attractive valuation metrics than TPR, so it seems like value investors will conclude that ANF is the superior option right now.
Few stocks, let alone retail names, have enjoyed a run quite like Abercrombie & Fitch Co. NYSE: ANF over the past few months. Since the back end of May, shares have more than doubled, powering up to their highest level since January 2025 and all but erasing the brutal 60% sell-off that did so much damage last year. It has been an impressive recovery, and the momentum shows little sign of letting up.
Abercrombie & Fitch Today
ANF
Abercrombie & Fitch
$141.35 -1.73 (-1.21%)
As of 02:23 PM Eastern
This is a fair market value price provided by Massive. Learn more.
$65.45▼
$154.5812.08
$154.17
The latest fuel came from two sources in quick succession: a record set of quarterly results last week, then a fresh analyst upgrade this week that reckons the good times are far from over. Together, they are the clearest signal yet that this lifestyle retailer may have further to climb.
Get Abercrombie & Fitch alerts:
The question for investors, then, is not whether Abercrombie has turned a corner; it plainly has, but whether the shares can keep up their blistering pace. After a rally of this magnitude, is the hot streak only just getting started, or has the easy money already been made?
A Standout QuarterLast week's report left no doubt about the business's strength right now. Along with a solid beat on the headline numbers, sales rose across the board, and management was confident enough to raise its guidance for the rest of the year.
What stood out was that the company's namesake Abercrombie brand grew 8% year over year, helping re-establish momentum that had recently slowed. Alongside it, the company's younger-skewing Hollister saw good progress with acquiring new customers, helped by a deal with Target Corporation NYSE: TGT that puts its clothes in more than 1,500 Target stores.
Management also announced a fresh share repurchase program, one of the cleanest signals it can make that it believes its own shares are undervalued. Overall, it was a solid report, and from that viewpoint at least, the subsequent 35% jump in shares wasn't all that surprising.
Abercrombie & Fitch Company (ANF) Price Chart for Tuesday, September, 1, 2026
An Upgrade That Fanned the FlamesAbercrombie & Fitch Stock Forecast Today12-Month Stock Price Forecast:
$154.17
9.80% Upside
Moderate Buy
Based on 14 Analyst Ratings
Current Price$140.40High Forecast$185.00Average Forecast$154.17Low Forecast$92.00Abercrombie & Fitch Stock Forecast Details
A big vote of confidence from Wall Street quickly followed the strong quarter. On Monday, Argus lifted its rating on the stock to Buy, arguing that upside momentum from both brands has room to run. It also set a new $162 price target for Abercrombie shares, indicating potential upside of around 13% from recent prices.
The analyst behind the call, Argus's Christine Dooley, made a clear case for why the momentum can last. In her view, sales have decisively turned for the company after management worked to put both brands on a more sustainable footing. As she put it, Hollister was already performing well, and now the flagship Abercrombie brand has staged a revival of its own, giving the retailer two engines of growth rather than one.
What the Doubters Are SayingHowever, not everyone is convinced the good times will continue. After the stock jumped following last week's results, Citi took the opposite path and turned cautious, downgrading its rating on Abercrombie from Buy to Neutral. Analyst Paul Lejuez acknowledged there was plenty to like in the report, but that after such a sharp move, the stock's risk/reward profile was no longer attractive.
There was also a catch buried in the headline numbers—a substantial chunk of the quarter's profit came from a one-off tariff refund, a windfall that flattered the results and will not repeat indefinitely. Strip out that temporary boost, and while the business is still performing well, its actual profitability is more modest than the reported figures suggest, something investors chasing the stock would do well to remember.
Abercrombie's valuation is also starting to look less like a bargain. This time last year, the stock traded at 7x earnings; today, that same multiple is above 12. That kind of re-rating leaves far less margin for error in future results, and puts additional pressure on the company to keep delivering.
Plenty of Momentum, But Beware Some Profit-TakingSo where does that leave investors today? The bull case remains a powerful one—Abercrombie is undoubtedly a well-run business with some real momentum behind it. Set against that are two main bearish caveats: the flattering effect of a $100 million one-off tariff refund and a share price that's already come an awfully long way in a short space of time.
For now, it looks like shares are trying to consolidate at the upper end of last week's jump, near the $150 mark, and it would be no surprise to see some profit-taking set in over the coming sessions. That might in fact be the best-case scenario for those of us on the sidelines, as it would take the steam out of the recent run and hand investors a chance to buy into a stock that clearly has a lot of momentum behind it.
Continue following MarketBeat
Add MarketBeat as your preferred source on Google to see our latest stories in your feed.
Should You Invest $1,000 in Abercrombie & Fitch Right Now?Before you consider Abercrombie & Fitch, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Abercrombie & Fitch wasn't on the list.
While Abercrombie & Fitch currently has a Moderate Buy rating among analysts, top-rated analysts believe these five stocks are better buys.
View The Five Stocks Here
Discover the 10 Best High-Yield Dividend Stocks for 2026 and secure reliable income in uncertain markets. Download the report now to identify top dividend payers and avoid common yield traps.
Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?
Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Abercrombie & Fitch (ANF - Free Report) .
Abercrombie currently has an average brokerage recommendation (ABR) of 1.93, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 14 brokerage firms. An ABR of 1.93 approximates between Strong Buy and Buy.
Of the 14 recommendations that derive the current ABR, seven are Strong Buy and one is Buy. Strong Buy and Buy respectively account for 50% and 7.1% of all recommendations.
Brokerage Recommendation Trends for ANF
Check price target & stock forecast for Abercrombie here>>>
The ABR suggests buying Abercrombie, but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation.
Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation.
In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.
With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near-term price performance. So, validating the Zacks Rank with ABR could go a long way in making a profitable investment decision.
ABR Should Not Be Confused With Zacks RankIn spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures.
The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them.
In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.
In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks.
There is also a key difference between the ABR and Zacks Rank when it comes to freshness. When you look at the ABR, it may not be up-to-date. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices.
Is ANF a Good Investment?Looking at the earnings estimate revisions for Abercrombie, the Zacks Consensus Estimate for the current year has increased 7.4% over the past month to $11.01.
Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason for the stock to soar in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #2 (Buy) for Abercrombie. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Therefore, the Buy-equivalent ABR for Abercrombie may serve as a useful guide for investors.
Abercrombie & Fitch (ANF - Free Report) could be a solid choice for investors given the company's remarkably improving earnings outlook. While the stock has been a strong performer lately, this trend might continue since analysts are still raising their earnings estimates for the company.
The upward trend in estimate revisions for this teen clothing retailer reflects growing optimism of analysts on its earnings prospects, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. This insight is at the core of our stock rating tool -- the Zacks Rank.
The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008.
For Abercrombie & Fitch, there has been strong agreement among the covering analysts in raising earnings estimates, which has helped push consensus estimates considerably higher for the next quarter and full year.
The chart below shows the evolution of forward 12-month Zacks Consensus EPS estimate:
12 Month EPS
Current-Quarter Estimate RevisionsFor the current quarter, the company is expected to earn $2.95 per share, which is a change of +25.0% from the year-ago reported number.
The Zacks Consensus Estimate for Abercrombie has increased 5.5% over the last 30 days, as three estimates have gone higher while one has gone lower.
Current-Year Estimate RevisionsFor the full year, the earnings estimate of $11.01 per share represents a change of +11.7% from the year-ago number.
There has been an encouraging trend in estimate revisions for the current year as well. Over the past month, three estimates have moved up for Abercrombie versus no negative revisions. This has pushed the consensus estimate 7.42% higher.
Favorable Zacks RankThe promising estimate revisions have helped Abercrombie earn a Zacks Rank #1 (Strong Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision.
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500.
Bottom LineInvestors have been betting on Abercrombie because of its solid estimate revisions, as evident from the stock's 49.1% gain over the past four weeks. As its earnings growth prospects might push the stock higher, you may consider adding it to your portfolio right away.
Have you evaluated the performance of Abercrombie & Fitch's (ANF - Free Report) international operations during the quarter that concluded in July 2026? Considering the extensive worldwide presence of this teen clothing retailer, analyzing the patterns in international revenues is crucial for understanding its financial resilience and potential for growth.
In today's increasingly interconnected global economy, a company's ability to tap into international markets can be a pivotal factor in shaping its overall financial health and growth trajectory. For investors, understanding a company's reliance on overseas markets has become increasingly crucial, as it offers insights into the company's sustainability of earnings, ability to tap into diverse economic cycles and overall growth potential.
Presence in international markets can act as a hedge against domestic economic downturns and provide access to faster-growing economies. However, this diversification also brings complexities due to currency fluctuations, geopolitical risks and differing market dynamics.
In our recent assessment of ANF's quarterly performance, we discovered notable trends in its overseas revenue sections, which are typically modeled and scrutinized by Wall Street analysts.
The recent quarter saw the company's total revenue reaching $1.27 billion, marking an improvement of 4.8% from the prior-year quarter. Next, we'll examine the breakdown of ANF's revenue from abroad to comprehend the significance of its international presence.
Trends in ANF's Revenue from International MarketsOf the total revenue, $201.99 million came from Europe, Middle East and Africa during the last fiscal quarter, accounting for 16%. This represented a surprise of +1.37% as analysts had expected the region to contribute $199.26 million to the total revenue. In comparison, the region contributed $167.37 million, or 15%, and $197.21 million, or 16.3%, to total revenue in the previous and year-ago quarters, respectively.
During the quarter, Asia Pacific including Oceania contributed $44.16 million in revenue, making up 3.5% of the total revenue. When compared to the consensus estimate of $29.91 million, this meant a surprise of +47.65%. Looking back, Asia Pacific including Oceania contributed $46.5 million, or 4.2%, in the previous quarter, and $37.15 million, or 3.1%, in the same quarter of the previous year.
Revenue Projections for Overseas MarketsIt is projected by analysts on Wall Street that Abercrombie will post revenues of $1.37 billion for the ongoing fiscal quarter, an increase of 5.8% from the year-ago quarter. The expected contributions from Europe, Middle East and Africa and Asia Pacific including Oceania to this revenue are 14.5%, and 2.2%, translating into $197.49 million, and $30.2 million, respectively.
For the entire year, the company's total revenue is forecasted to be $5.5 billion, which is an improvement of 4.5% from the previous year. The revenue contributions from different regions are expected as follows: Europe, Middle East and Africa will contribute 14.7% ($810.59 million), and Asia Pacific including Oceania 2.6% ($141.65 million) to the total revenue.
Key TakeawaysAbercrombie's leaning on foreign markets for its revenue stream presents a mix of chances and challenges. Therefore, a vigilant watch on its international revenue movements can greatly aid in projecting the company's future direction.
In a world where international interdependencies and geopolitical conflicts are ever-increasing, Wall Street analysts closely monitor these trends for companies having international presence to adjust their earnings forecasts. Of course, there are several other factors, including a company's standing within its home borders, that influence analysts' earnings forecasts.
At Zacks, a company's changing earnings outlook is given considerable attention due to its proven, strong influence on a stock's price performance in the near term. The connection here is straightforward and positive: when earnings estimates are revised upward, the stock price generally follows suit, increasing as well.
The Zacks Rank, our proprietary stock rating tool, comes with an externally validated impressive track record. It effectively utilizes shifts in earnings projections to act as a dependable barometer for forecasting short-term stock price trends.
Currently, Abercrombie holds a Zacks Rank #1 (Strong Buy), signifying its potential to outperform the overall market's performance in the forthcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Assessing Abercrombie & Fitch's Stock Price Movement in Recent TimesOver the past month, the stock has gained 49.1% versus the Zacks S&P 500 composite's 3.9% increase. The Zacks Retail-Wholesale sector, of which Abercrombie is a part, has risen 2.8% over the same period. The company's shares have increased 97% over the past three months compared to the S&P 500's 2.2% increase. Over the same period, the sector has declined 2.8%
The market’s first takeaway from Abercrombie & Fitch Co‘s (NYSE:ANF) second-quarter earnings was obvious: a roughly $100 million tariff refund helped fuel a blowout quarter. Management spent much of its earnings call making a different argument—that the business itself outperformed expectations by even more.
That distinction matters because investors are now deciding whether Wednesday’s sharp 40% stock rally reflects a one-time accounting benefit or evidence that the retailer’s turnaround continues to strengthen underneath the headlines.
Abercrombie Says the Underlying Business Outperformed ExpectationsChief Executive Officer Fran Horowitz acknowledged the impact of the tariff refund but emphasized it was not what drove the quarter’s outperformance.
“While we benefited from tariff refunds in the quarter, we beat our outlook by more than the refund on both operating margin and earnings per share,” she said.
Read Next
The company reported record second-quarter revenue of $1.27 billion and adjusted earnings per share of $4.17, comfortably ahead of Wall Street expectations. Although the tariff refund provided a meaningful boost, management repeatedly pointed investors back to the operating performance of the core business.
Chief Financial Officer Robert Ball broke down the numbers. Abercrombie’s operating margin exceeded the company’s May outlook by roughly 990 basis points. About 790 basis points came from the tariff refund, but “the remaining approximately 200 basis points came primarily from favorable gross margin and operating leverage on stronger sales.”
His conclusion was unequivocal: “While the refund was meaningful, the underlying business performed above our expectations.”
Abercrombie’s Pricing Power Helped Drive the BeatManagement also pointed to healthy consumer demand rather than aggressive discounting as another reason the business exceeded expectations.
Ball said average unit retail — the average selling price of merchandise — “came in stronger than expected on reduced promotional activity,” adding that “the consumers are responding really well to the assortments.” Importantly, he noted that stronger pricing was accompanied by higher unit sales, describing the quarter as “balanced, which is what we like to see.”
Executives highlighted broad-based momentum across the business. Abercrombie delivered 8% sales growth, Hollister returned to sequential acceleration, APAC sales climbed 19%, and the company recorded its 15th consecutive quarter of top-line growth.
The company also raised its full-year outlook for both sales and profitability, citing a “strong start to August” and improving confidence in the second half.
Why Investors Should Look Beyond the Tariff RefundThe tariff refund undoubtedly inflated reported earnings. Management itself estimated the benefit at roughly $1.75 per diluted share during the quarter.
But the more important message from the earnings call was that executives wanted investors to separate the one-time benefit from the underlying trajectory of the business. They argued that stronger merchandise execution, lower promotional activity, healthier margins and continued demand were enough to produce results above internal expectations even before accounting for the refund.
For investors, the next question is whether that operational momentum persists after the tariff benefit disappears. Future quarters will no longer enjoy the same windfall, making the company’s underlying sales growth, pricing discipline and margin performance the metrics that matter most.
If those trends continue, Wednesday’s rally may prove to have been about more than a one-off refund.
ANF Stock Price Activity: Abercrombie & Fitch shares were up 40.20% at $152.68 on Wednesday, according to Benzinga Pro data.
The trendy, casual retailer Abercrombie & Fitch (ANF +1.83%) just hit it out of the park.
In the second quarter of its fiscal year 2026, Abercrombie reported $4.17 adjusted earnings per diluted share, up from $2.33 one year ago. Revenue of $1.27 billion rose 5% year over year.
Wall Street consensus estimates had only expected $1.99 of adjusted EPS. Shares had soared roughly 33%, as of 12:53 p.m. ET today.
The quarter builds on continued momentum, with the company achieving its 15th consecutive quarter of sales growth. But here's the real reason the stock is skyrocketing today.
Image source: Getty Images.
Significantly raising guidanceIn addition to the big earnings beat, Abercrombie's management team significantly raised its full-year guidance.
The company now expects annual sales growth of 5%, up from a prior range of 3% to 5%.
Operating margin is expected to land within a range of 14.5%-15%, up from a prior outlook of 12%-12.5%. Diluted earnings per share are expected to be within a range of $13.10-$13.60, up from a prior range of $10.20-$11.00.
That's an enormous lift, so it makes sense that investors are buying the stock hand over fist.
Part of the boost during the second quarter, however, is due to tariff refunds. Abercrombie & Fitch received $100 million in tariff refunds associated with the Supreme Court's ruling that tariffs enacted by the Trump administration through the International Emergency Economic Powers Act (IEEPA) were illegal.
Premium Feature
Moneyball Superscore
79/100
Today's Change
(
1.83
%) $
2.67
Current Price
$
148.42
Abercrombie's CFO, Robert Ball, said the tariffs added about $1.75 to diluted EPS in the quarter. Ball also said the company expects to recognize an additional $20 million of tariff refunds in its third quarter.
Even so, the core business is performing very well, and momentum is expected to continue in the back half of the year.
Abercrombie & Fitch had a nearly 20% operating margin in the quarter. While tariff refunds added 7.9% to that number, the company had only guided for about a 10% operating margin in the quarter.
Abercrombie picked up another 2% from favorable gross margin and operating leverage, due to stronger sales.
CEO Fran Horowitz said the brand is seeing success globally and across genders, with knits, woven shirts, pants, and shorts all performing well.
Horowitz also said the company's partnership with the NFL continues to appeal to sports fans, while Hollister's partnership with Target has brought in new customers and strengthened its relationship with existing ones.
Where can the stock go from here?Following the big move, Abercrombie now trades at about 14 times forward earnings.
The company is also repurchasing stock and has bought back 7% of its shares since the year began. Management now plans to return at least $500 million to shareholders through repurchases in fiscal 2026; so far, it has repurchased $282 million.
The new guidance also suggests that quarterly sales growth will accelerate from here, and management believes it can achieve industry-leading margins again this year.
Companies like Abercrombie are somewhat tied to the economy and consumer spending, so that's a potential risk as inflation remains elevated.
But I do think long-term investors can buy Abercrombie & Fitch, given the strength in the underlying business. Investors may want to dollar-cost average into the stock right now, as I suspect some near-term-minded investors will take profits after the big gains.
Abercrombie & Fitch Co. (ANF) Q2 2026 Earnings Call August 26, 2026 8:30 AM EDT
Company Participants
Mohit Gupta - Vice President of Investor Relations
Fran Horowitz-Bonadies - CEO & Director
Robert Ball - CFO & Executive VP
Conference Call Participants
Dana Telsey - Telsey Advisory Group LLC
Corey Tarlowe - Jefferies LLC, Research Division
Matthew Boss - JPMorgan Chase & Co, Research Division
Marni Shapiro - The Retail Tracker
Katherine Delahunt - Morgan Stanley, Research Division
Mauricio Serna Vega - UBS Investment Bank, Research Division
Jonathan Keypour - Goldman Sachs Group, Inc., Research Division
Janine Hoffman Stichter - BTIG, LLC, Research Division
Angus Kelleher-Ferguson - Barclays Bank PLC, Research Division
Janet Kloppenburg - JJK Research Associates, Inc.
Presentation
Operator
Good day, and welcome to the Abercrombie & Fitch Second Quarter Fiscal Year 2026 Earnings Conference Call. Today's call is being recorded. [Operator Instructions] At this time, I would like to turn the conference over to Mohit Gupta. Please go ahead.
Mohit Gupta
Vice President of Investor Relations
Thank you. Good morning, and welcome to our second quarter 2026 earnings call. Joining me today on the call are Fran Horowitz, Chief Executive Officer; Scott Lipesky, Chief Operating Officer; and Robert Ball, Chief Financial Officer.
Earlier this morning, we issued our second quarter earnings release, which is available on our website at corporate.abercrombie.com under the Investors section. Also available on our website is an investor presentation. Please keep in mind that we will make certain forward-looking statements on the call. These statements are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and are subject to the risks and uncertainties that could cause actual results to differ materially from the expectations and assumptions we mentioned today.
These factors and uncertainties are discussed in our reports and filings with the Securities and Exchange Commission. In addition, we
Retailers often have to choose between protecting margins and driving sales. Abercrombie & Fitch Co (NYSE:ANF) says it managed to do both in the second quarter.
During the company’s earnings call, executives pointed to one of the quarter’s most overlooked strengths: customers continued buying even as promotions eased.
Chief Financial Officer Robert Ball said, “AUR came in stronger than expected on reduced promotional activity,” adding that “the consumers are responding really well to the assortments.” AUR, or average unit retail, measures the average selling price of merchandise.
• Abercrombie & Fitch stock is at critical resistance. What’s behind ANF new highs?
Abercrombie Says Better Products, Not Bigger Discounts, Drove SalesRather than relying on markdowns, management credited stronger assortments and disciplined inventory management for the quarter’s performance. Ball described the results as “balanced, which is what we like to see,” noting that stronger pricing came alongside higher unit sales.
He later emphasized that demand wasn’t simply shifting toward higher-priced products. “That is not just a mix dynamic. That is true sales units out the door,” he said, while adding that the company “haven’t taken any sort of additional price increases.”
Chief Executive Officer Fran Horowitz echoed that message, saying the quarter’s outperformance was “primarily driven from lower discount levels” and that the company’s “read-and-react model is really working for us.”
For investors, the takeaway is that Abercrombie’s improved profitability appears to be coming from stronger brand appeal and disciplined execution — not heavier promotions or higher prices. That’s a more durable growth story than simply selling the same products at deeper discounts.
Read Next
Shutterstock
Market News and Data brought to you by Benzinga APIs
Abercrombie & Fitch (ANF - Free Report) ) shares have surged over 30% on Wednesday after reporting stronger-than-expected Q2 results this morning and a substantial increase in full-year guidance.
The rally has pushed ANF back into positive territory for the year and reflects renewed confidence that the apparel retailer can sustain its recent momentum.
Still, after such a dramatic one-day move, investors have to ask whether Abercrombie's improving outlook justifies chasing the rally or if much of the good news is already being priced in.
Image Source: Zacks Investment Research
Abercrombie Crushes Q2 ExpectationsAbercrombie posted record Q2 sales of $1.27 billion, rising 5% year over year and topping the Zacks Consensus of $1.24 billion. Abercrombie brand sales increased 8% despite flat companywide comparable sales and a 3% decline at Hollister.
More importantly, excluding a one-time tariff benefit, adjusted earnings were up 4% YoY to $2.42 per share and crushed EPS expectations of $1.95 by 24%.
Notably, Abercrombie’s reported Q2 adjusted EPS of $4.17 included a $1.75-per-share benefit from roughly $100 million of tariff refunds.
Image Source: Zacks Investment Research
Raised Guidance & Share Repurchase TargetsManagement also raised its fiscal 2026 guidance, now expecting roughly 5% sales growth and EPS of $13.10-$13.60, compared with its previous forecast of 3-5% sales growth and EPS outlook of $10.20-$11.00.
The update reflects an estimated $120 million in total IEEPA tariff refunds, with a $20 million benefit expected in Q3. It’s also noteworthy that Abercrombie increased its share repurchase target to at least $500 million from around $450 million.
ANF's Valuation Remains ReasonableDespite Wednesday's surge, Abercrombie stock doesn't look excessively expensive relative to its improved earnings outlook.
With shares trading over $140, ANF is still trading at just 10X forward earnings given management’s new FY26 EPS guidance.
That valuation appears to leave room for further upside if Abercrombie can indeed sustain its sales growth and earnings momentum.
However, investors should remember that tariff refunds have provided a sizable boost to this year's profitability. At the same time, flat comparable sales suggest the underlying growth picture isn't quite as spectacular as the stock's one-day move implies.
Image Source: Zacks Investment Research
Bottom Line: Should Investors Chase ANF's Rally?Abercrombie's Q2 beat, higher guidance, and still-reasonable valuation certainly support the bullish reaction. However, after a 30% surge, investors may be better served waiting for a more attractive entry point rather than chasing ANF shares immediately.
Keeping that in mind, ANF currently lands a Zacks Rank #3 (Hold), which supports a more measured stance despite the company's encouraging earnings outlook. Existing shareholders have plenty of reasons to stay optimistic, but new investors may want to let the post-earnings excitement settle before jumping in.
ToplineAbercrombie and Fitch shares spiked to an 18-month high Wednesday, reporting a large boost in operating income fueled by $100 million worth of tariff refunds in its second quarter earnings.
Abercrombie & Fitch expect further tariff refunds next quarter.
Photo by Spencer Platt/Getty Images
Key FactsAbercrombie shares were up 34.8% as of 45 minutes before markets closed, reaching their highest point since January 2025.
The apparel company benefited from about $100 million in tariff refunds, which boosted operating income to $253 million, up from $207 million in the same period last year, according to its earnings report.
Earnings per share reached $4.17, a massive expectations beat, topping the $1.99 EPS analysts forecasted, according to FactSet.
The retailer also recorded net sales of $1.3 billion in the second quarter, up 5% compared to last year.
After the Supreme Court ruled against President Donald Trump’s “Liberation Day” tariffs earlier this year, the U.S. Court of International Trade ruled several U.S. companies that paid the tariffs were entitled to refunds.
Abercrombie reported $90 million in tariff expenses last year, dropping its full-year operating margin outlook by 1.7% and representing about 16% of the company's entire net income in 2025.
What To Watch ForAbercrombie expects to receive $20 million in tariff refunds for its third quarter.
Big NumberAt least 2.5%. That is how much Abercrombie raised its operating margin outlook for the full year by, forecasting a range between 14.5% and 15%.
Key BackgroundAbercrombie is one of several U.S. companies that has reported tariff refunds this month. U.S. retailers reported over $5 billion in refunds last week alone, with Walmart accounting for a whopping $2.9 billion of those refunds. Other companies reporting tariff refunds included Target ($994 million), Home Depot ($730 million) and TJ Maxx owner TJX ($331 million). Many retailers have suggested they plan to reinvest their tariff refunds into their companies as opposed to passing them on to consumers who paid higher retail prices. Walmart has said it intends to deploy as much of its refund back into lowering prices for consumers, while Costco has said it plans to do the same, though it is not yet clear how much money in tariff refunds the big-box store has received.
Further ReadingAmericans’ Top Retailers Are Getting Billions In Tariff Refunds—Including Walmart, Target—But Many Consumers Still Aren’t (Forbes)
Shares of Abercrombie & Fitch (ANF +1.83%) rocketed higher on Wednesday after the apparel and accessories purveyor boosted its full-year profit forecast.
Image source: Getty Images.
Consistent, broad-based growth Abercrombie & Fitch's net sales rose 5% year over year to $1.3 billion in its fiscal 2026 second quarter, which ended on Aug. 1. That marked the retailer's 15th straight quarter of growth.
Abercrombie & Fitch saw gains in all its major geographic regions. Its Asia-Pacific segment enjoyed particularly strong growth, with sales up 19%.
The company's Abercrombie and Hollister brands both delivered record Q2 revenue, with sales up 8% and 2%, respectively.
Premium Feature
Moneyball Superscore
79/100
Today's Change
(
1.83
%) $
2.67
Current Price
$
148.42
Hollister struck a partnership with discount retail giant Target in June that launched it into the home and decor category.
"Hollister's collaboration with Target, the brand's first meaningful wholesale and category expansion in the U.S., has performed very well against expectations and added nicely to top-line growth this quarter," CEO Fran Horowitz said during a conference call with analysts.
These sales increases, along with roughly $100 million in tariff refunds, drove Abercrombie & Fitch's operating income to $253 million. Its adjusted earnings per share, in turn, climbed to $4.17 from $2.32 in the prior-year period.
Management chose to pass much of these profits on to stockholders via share repurchases. Abercrombie & Fitch has spent $282 million to buy back a whopping 7% of its shares so far in 2026.
Buybacks are set to continue This solid first-half performance prompted the company to boost its full-year financial forecast. Management now sees net sales rising by 5%, resulting in net income of $13.10 to $13.60 per share.
"We expect to grow sales and earnings per share, underpinned by double-digit operating margins, while delivering strong cash flow and returns of cash to shareholders through at least $500 million of share repurchases," Horowitz said.
Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Target. The Motley Fool recommends Abercrombie & Fitch. The Motley Fool has a disclosure policy.
