Telsey Advisory analyst Dana Telsey reiterated an Outperform rating on the shares of Abercrombie & Fitch Co (NYSE:ANF) but lowered the price target from $190.00 to $125.00, citing greater macro uncertainty.
ANF ended FY24 with strong results, surpassing both top and bottom-line expectations, despite a slight dip in gross margin in the fourth quarter.
The company has shown consistent growth across both A&F and Hollister brands. While concerns about margin and consumer confidence persist, ANF’s strong holiday performance, upcoming share repurchase program, and low valuation support the current outlook, said the analyst.
Management expects FY25 net sales growth of 3% – 5%, driven by regional and brand expansion, with a 70-basis-point FX headwind. Operating margin is forecasted between 14% – 15%, with the first half impacted by higher freight costs and inventory selling, and the second half benefiting from lower freight costs.
The ANF …
