Abercrombie & Fitch Company (NYSE:ANF) shares are trading higher on Thursday.
Yesterday, the company reported second-quarter adjusted earnings per share of $2.32, beating the analyst consensus estimate of $2.30.
Quarterly sales of $1.209 billion (+7% year over year) outpaced the Street view of $1.195 billion.
ANF stock is gaining positive traction. Check out the latest moves here.
The company raised its fiscal year 2025 GAAP earnings per share guidance from a prior range of $9.50 to $10.50 to a new range of $10 to $10.50, compared to the previous estimate of $10.28.
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It also lifted its fiscal year 2025 sales guidance from a range of $5.100 billion to $5.250 billion to a new range of $5.200 billion to $5.290 billion, versus the $5.205 billion estimate.
Telsey Advisory Group analyst Dana Telsey reiterated the Outperform rating and gave the stock a price target of $125.
Telsey views the second-quarter topline beat, above-consensus third-quarter guide and higher full-year outlook as evidence of durable brand momentum, led by stronger teen engagement at Hollister.
The analyst notes that inventory exited the second quarter in a cleaner position, with management being “ready to chase” into the back half and leaning into what’s working.
Following a tougher prior quarter, early third-quarter reads are encouraging across boho, western and denim.
Importantly, denim strength is occasion-driven rather than tied to a single silhouette, with traction in low-rise, baggy, wide-leg and bootcut fits, Telsey writes.
The analyst also highlights solid results from the broader distribution of Abercrombie Kids at at Bloomingdale’s, DICK’S Sporting Goods, Inc. (NYSE:DKS), Macy’s, Inc. (NYSE:M) and Nordstrom. By contrast, there are no plans to widen distribution for Abercrombie or Hollister given their already larger store footprints relative to Kids.
The combination of healthier inventory and clearer category winners positions the company to respond quickly to demand.
Overall, Telsey frames the outlook as supportive of sustained relevance and improved flexibility into the second half.
The analyst now models FY25 consolidated comp growth of 4.7%, up from prior estimation of 3.1%. Telsey added that this implies total revenue growth of 7%, raised from 5.9%.On earnings, the analyst now expects FY25 EPS of $9.91, lowered from $10.30 on incremental tariff headwinds.
ANF Price Action: ANF shares are trading higher by 2.30% to $97.55 at publication on Thursday.
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