Abercrombie & Fitch Stock Soars 35% as Investors Anticipate Recovery
Abercrombie & Fitch (ANF) has experienced a remarkable surge in its stock, rising by 35% on November 25. This increase reflects investor optimism, signaling a potential recovery for the Ohio-based clothing retailer.
Market Recovery After a Challenging Period
The past 18 months posed significant challenges for Abercrombie & Fitch. The company’s stock suffered a steep decline, plummeting 65% from its peak of $186 to a low of $65 between June 2024 and the present. However, strong financial results for the third quarter of this fiscal year have revitalized investor confidence.
Strong Financial Performance
Abercrombie & Fitch reported earnings per share of $2.36 for its fiscal third quarter, surpassing analysts’ expectations of $2.17. The company’s revenue reached $1.29 billion, meeting Wall Street forecasts, while comparable-store sales climbed 3% year-over-year. Notably, the Hollister brand reported an impressive 15% increase in comparable sales.
Revised Guidance and Future Expectations
Management has adjusted its full-year guidance, now anticipating net sales growth of 6% to 7%, up from a previous estimate of 5% to 7%. Earnings per share are projected to range between $10.20 and $10.50, compared to an earlier forecast of $10 to $10.50. This revised outlook aligns well with market expectations.
Investor Sentiment on ANF Stock
Despite the recent uptick in share prices, ANF stock remains down 40% for the year 2025 and is on track for its most challenging year since 2016. Analysts maintain a consensus Moderate Buy rating for the stock, based on equal parts Buy and Hold recommendations issued in the last three months.
- Average price target: $102.33
- Potential upside: 15.65%
- Wall Street analyst reviews: 10 analysts
As Abercrombie & Fitch navigates current market challenges, its recent performance has led investors to believe that a turnaround may be in sight.
