Key Stats for Abercrombie Stock
- Price Change for Abercrombie stock: 37%
- $ANF Share Price as of Nov. 25: $90
- 52-Week High: $165
- $ANF Stock Price Target: $99
Now Live: Discover how much upside your favorite stocks could have using TIKR’s new Valuation Model (It’s free)>>>
What Happened?
Abercrombie & Fitch (ANF) stock exploded higher on Tuesday, surging 37% after the apparel retailer demonstrated that its turnaround story remains intact despite challenges at its namesake Abercrombie brand.
The company delivered its 12th straight quarter of growth, with total sales climbing 7% to a record $1.29 billion and earnings per share of $2.36, easily beating Wall Street’s expectations.
The real story behind ANF stock’s massive rally is the shifting dynamic between its two brands. While the Abercrombie brand has fueled the company’s comeback in recent years, Hollister is now picking up the growth baton.
During the quarter, Abercrombie brand sales fell 2% with comparable sales down a troubling 7%. But Hollister more than made up for it, posting 16% sales growth on comparable sales gains of 15%.
This marks at least the third consecutive quarter where Hollister has saved the company’s results. Hollister revenue hit $673.27 million, well above analyst expectations of $649.7 million. Meanwhile, Abercrombie’s sales of $617.35 million came in below the $631.8 million analysts were expecting.
CEO Fran Horowitz made it clear that Hollister will drive the company’s holiday shopping season. She highlighted “exciting campaigns and collaborations planned that will highlight some must haves” for Hollister, noting “we are just getting started.”
The company is aggressively investing in the Hollister brand, with plans to open 25 new stores and refresh 35 others this year.
For the Abercrombie brand, Horowitz struck a more cautious tone. Last quarter, she attributed the slowdown to old inventory that needed to be marked down.
The CEO had expected the brand to return to growth by year-end, but that timeline has now shifted. For the current quarter, Abercrombie brand sales are expected to be flat against last year’s record performance.
See analysts’ growth forecasts and price targets for ANF stock (It’s free!) >>>
What the Market Is Telling Us About ANF Stock
The 37% surge in ANF stock shows that investors are comfortable with Hollister leading the growth charge. The market is betting that the company’s overall momentum remains strong enough to offset near-term headwinds at the Abercrombie brand.
Several factors are driving investor confidence.
- First, traffic is positive across both brands and all channels. Customer files continue to grow, showing that consumers remain engaged with both Abercrombie and Hollister. The company is also seeing sequential improvement in average unit retail (AUR) as it pulls back on promotions and clearance selling.
- Second, management has proven it can execute. The team has kept inventory extremely tight, enabling better pricing power and higher margins. Inventory costs are up just 5% while units are up only 1%, giving the company flexibility to chase trends through the holiday season.
- Third, the company is managing tariff headwinds effectively. Despite absorbing roughly 210 basis points of tariff impact in the quarter, Abercrombie still delivered a 12% operating margin. For the full year, management expects operating margins of 13% to 13.5%, even with 170 basis points of tariff costs weighing on profitability.
Management also demonstrated strong capital allocation discipline. The company repurchased $100 million in shares during the quarter, bringing year-to-date buybacks to $350 million, or 9% of shares outstanding at the beginning of the year.
With $1.06 billion in total liquidity, Abercrombie has the financial flexibility to continue returning cash to shareholders while investing in growth.
On the Abercrombie brand specifically, executives pointed to “sequential improvement” after a 5% sales decline in the previous quarter.
The brand is seeing positive traffic and customer file growth, suggesting the underlying health remains solid.
Recent collaborations with the NFL and luxury retailer Kemo Sabe are generating buzz ahead of the holidays.
CFO Robert Ball noted that the company has started taking targeted price increases on spring inventory to offset tariff costs. These will begin showing up in late December and January, which should provide some margin relief as 2026 begins.
For the holiday quarter, ANF stock guidance calls for companywide sales growth of 4% to 6%, which came in slightly below Wall Street’s 5.6% expectation. But management narrowed full-year sales guidance to the upper end of its range at 6% to 7% growth, beating expectations of 6.2%.
The real question for ANF stock going forward is when the Abercrombie brand will return to growth. Executives didn’t provide a specific timeline during the earnings call, focusing instead on the sequential improvements they’re seeing.
But with inventory clean, marketing investments ramping up, and new store openings continuing, management appears confident in the brand’s trajectory.
Estimate a company’s fair value instantly (Free with TIKR) >>>
How Much Upside Does ANF Stock Have From Here?
With TIKR’s new Valuation Model tool, you can estimate a stock’s potential share price in under a minute.
All it takes is three simple inputs:
- Revenue Growth
- Operating Margins
- Exit P/E Multiple
If you’re not sure what to enter, TIKR automatically fills in each input using analysts’ consensus estimates, giving you a quick, reliable starting point.
From there, TIKR calculates the potential share price and total returns under Bull, Base, and Bear scenarios so you can quickly see whether a stock looks undervalued or overvalued.
See a stock’s true value in under 60 seconds (Free with TIKR) >>>
Looking for New Opportunities?
- See what stocks billionaire investors are buying so you can follow the smart money.
- Analyze stocks in as little as 5 minutes with TIKR’s all-in-one, easy-to-use platform.
- The more rocks you overturn… the more opportunities you’ll uncover. Search 100K+ global stocks, global top investor holdings, and more with TIKR.
Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
