Abercrombie & Fitch Analysts Boost Their Forecasts After Upbeat Earnings

Abercrombie & Fitch Co ANF posted better-than-expected first-quarter financial results and raised guidance on Wednesday.

The company reported first-quarter FY24 sales growth of 22% year-on-year to $1.02 billion, beating the analyst consensus estimate of $ 963.26 million. Comparable sales jumped 21%. Adjusted EPS of $2.14 beat the analyst consensus estimate of $1.73, according to data from Benzinga Pro.

"We successfully navigated seasonal transitions with relevant assortments and compelling marketing, leveraging agile chase capabilities and inventory discipline, driving sales above our expectations," said CEO Fran Horowitz.

Abercrombie & Fitch raised its FY24 net sales growth outlook from 4% – 6% to a growth of 10%. ANF raised FY24 operating margin outlook from 12% to be around 14%. Capital expenditure of about $170 million.

For the second quarter, ANF sees sales growth to be up mid-teens compared to the fiscal second quarter 2023 level of $935 million.

Abercrombie & Fitch shares rose 24.3% to close at $189.45 on Wednesday.

These analysts made changes to their price targets on Abercrombie & Fitch after the company reported quarterly results.

• Telsey Advisory Group boosted the price target on Abercrombie & Fitch from $152 to $208. Telsey Advisory Group analyst Dana Telsey maintained an Outperform rating.
• Morgan Stanley increased Abercrombie & Fitch price target from $112 to $172. Morgan Stanley analyst Alexandra Steiger maintained an Equal-Weight rating on the stock.

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