ANF Stock Forecast & Price Target

Abercrombie & Fitch Co. demonstrated strong financial performance in its third quarter, achieving a 6.8% year-over-year sales increase to $1.291 billion, surpassing both market expectations and internal estimates. Notably, the Hollister brand exhibited robust comparable sales growth of 15%, significantly exceeding the company's guidance forecast of 5%-7%. With updated guidance indicating anticipated Q4 sales growth of 5.1% year-over-year, Abercrombie's overall performance remains solid, reinforcing a positive outlook for the company's financial trajectory.

Abercrombie & Fitch Co. experienced a decline in sales for its flagship brand, with a 2.0% year-over-year decrease to $617 million, contrasting with a strong performance from Hollister which saw a 16.3% increase. The gross margin suffered a significant contraction of 260 basis points, falling to 62.5%, primarily due to the impact of tariffs that accounted for a 210 basis point drop, and was below both the company’s and consensus estimates. Furthermore, the outlook for Q4 indicates flat year-over-year sales, contributing to a downward adjustment in the fiscal year 2026 earnings per share estimate from $10.55 to $10.42, reflecting ongoing pressures in the retail environment.