Abercrombie & Fitch Co. (NYSE:ANF) shares took a hit last month after the fashion giant said it is no longer up for sale, and will instead focus on fixing the long ailing business itself.
That said, Abercrombie has made its comeback today after reporting a smaller-than-expected loss in the second-quarter. Specifically, the company posted a net loss of ($0.16) per share, beating Wall Street’s estimates of ($0.33) per share. Sales also topped estimates, totaling $779.3 million, compared to consensus of $759 million. As of this writing, Abercrombie shares are up 13% to $10.87.
Abercrombie CEO Fran Horowitz stated, “We are encouraged by the clear progress across all brands. Through aggressive execution of our strategic plan, we delivered our third consecutive quarter of sequential comparable sales improvement. Hollister continues to build on its strong foundation, leveraging higher levels of customer engagement to drive growth across all touchpoints, and demonstrates how the customer responds when product, brand voice and brand experience are aligned. Abercrombie showed continued improvement in the areas we expected, as we brought better balance to the assortment throughout the quarter, and continued to apply the learnings from Hollister`s successes. Our focus remains on staying close to our customers and investing in our ability to meet their needs whenever, wherever and however they choose to engage with our brands.”
Horowitz continued, “While we expect the environment to remain challenging and promotional in the second half, we expect to see benefits from the continued improvement in product assortment, our strategic investments in marketing and omnichannel, and our ongoing efforts to optimize productivity across all channels. We are confident we are on the right path to deliver enhanced performance and long term shareholder value.”
On the ratings front, ANF has been the subject of a number of recent research reports. In a report issued on August 8, BMO analyst John Morris reiterated a Hold rating on ANF, with a price target of $14, which implies an upside of 29% from current levels. Separately, on August 4, Oppenheimer’s Anna Andreeva assigned a Hold rating to the stock.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, John Morris and Anna Andreeva have a yearly average loss of 4.5% and a return of 1.8% respectively. Morris has a success rate of 34% and is ranked #4061 out of 4609 analysts, while Andreeva has a success rate of 47% and is ranked #1752.
Overall, 2 research analysts have rated the stock with a Sell rating, 5 research analysts have assigned a Hold rating and one research analyst has given a a Buy rating to the stock. When considering if perhaps the stock is under or overvalued, the average price target is $9.00 which is -17% under where the stock opened today.
Abercrombie & Fitch Co. engages in the retail of apparel, personal care products and accessories. It offers a broad array of apparel products, including knit tops, woven shirts, graphic t-shirts, fleece, sweaters, jeans, woven pants, shorts, outerwear, dresses, intimates and swimwear; and personal care products and accessories for men, women and kids under the Abercrombie & Fitch, abercrombie kids, Hollister and Gilly Hicks brands. The company was founded in 1892 and is headquartered in New Albany, OH.