- Abercrombie & Fitch expects its net sales to increase by 3% to 5% in 2026.
- The company projects an operating margin between 14% and 15% for 2026.
- Capital expenditure is estimated to be around $200 million for 2026, up from a previous estimate of $167.3 million.
- For the first quarter of 2025, Abercrombie & Fitch forecasts net sales growth of 4% to 6%.
- The operating margin for the first quarter is expected to be between 8% and 9%.
- In the fourth quarter, adjusted earnings per share (EPS) were $3.57, slightly below the estimate of $3.59.
- Fourth-quarter net sales totaled $1.58 billion, surpassing the estimate of $1.57 billion.
- Abercrombie’s segment net sales reached $772.7 million, below the estimated $807.5 million.
- Hollister net sales were $812.2 million, surpassing the estimate of $758 million.
- Comparable sales saw a robust increase of 14%, exceeding the estimate of 11.5%.
- Abercrombie segment’s comparable sales grew by 5%, below the two estimates of 6.86%.
- Hollister’s comparable sales surged by 24%, significantly higher than the two estimates of 17.1%.
- Americas net sales reached $1.32 billion, outperforming the estimate of $1.26 billion.
- The company expects to repurchase $400 million worth of shares in 2025.
- Abercrombie & Fitch announced a $1.3 billion share buyback authorization.
- The company foresees year-over-year sales growth ranging from 3% to 5%.
- Market consensus on the stock includes 7 buy ratings, 4 hold ratings, and no sell ratings.
Abercrombie & Fitch Co Cl A on Smartkarma
Analysts from Baptista Research on Smartkarma are bullish on Abercrombie & Fitch Co. They highlighted the company’s strong performance in the latest quarters, showcasing a record net sales figure of $1.2 billion, up by 14% from the previous year. The comparable sales also rose by 16%, indicating growing consumer demand. Operating income saw a significant 30% growth year-over-year, with an improved operating margin of 14.8%. This positive outlook is driven by the expansion of global brand awareness and strategic localization efforts by Abercrombie & Fitch.
In a separate report, Baptista Research continues to express optimism for Abercrombie & Fitch Co., emphasizing the company’s expansion into new product categories and strategic brand partnerships. The second quarter of 2024 saw impressive results, with a 21% growth in net sales, reaching $1.1 billion, and a strong operating margin of 15.5%. Baptista Research is conducting an independent evaluation of the company using a Discounted Cash Flow methodology, aiming to assess the factors that could impact the company’s future stock price positively. Overall, the analysts are positive about Abercrombie & Fitch’s growth trajectory and strategic initiatives.
A look at Abercrombie & Fitch Co Cl A Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 1 | |
| Growth | 4 | |
| Resilience | 3 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 2.8 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
According to Smartkarma Smart Scores, Abercrombie & Fitch Co Cl A shows a promising long-term outlook. With a strong focus on growth and resilience, the company scores well in these areas. The Growth score of 4 indicates positive potential for expansion and development in the future. Additionally, with a Resilience score of 3, Abercrombie & Fitch Co Cl A demonstrates the ability to withstand economic challenges and market uncertainties.
Although the Dividend score is lower at 1, suggesting limited dividend payoff for investors, the overall outlook for Abercrombie & Fitch Co Cl A appears optimistic. The company, known for its specialty retail operations offering a wide range of apparel and personal care products for men, women, and kids, is positioning itself for sustainable growth and adaptability in the competitive retail industry.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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