Abercrombie & Fitch Co. (ANF Quick QuoteANF - Free Report) had a strong holiday season. This Zacks Rank #1 (Strong Buy) recently raised its fourth quarter and full year net sales outlook.

Abercrombie & Fitch is an omnichannel specialty retailer of apparel and accessories whose customers are kids through millennials. It has a family of brands, including Abercrombie & Fitch and Hollister.

It operates about 770 stores under these brands across North America, Europe, Asia, and the Middle East. It also operates three e-commerce sites for Abercrombie, Abercrombie Kids and Hollister.

Abercrombie & Fitch Raised Q4 and the Full Year Net Sales Outlook

On Jan 13, 2025, Abercrombie & Fitch provided a business update and increased its net sales outlook for the fiscal fourth quarter and full year 2024.

For the fourth quarter, net sales are now expected to grow in the range of 7% to 8%, up from the prior guidance range of 5% to 7%.

Abercrombie also increased its full year net sales growth outlook to around 15%, which is at the high end of its previous guidance range of 14% to 15%.

“Through fiscal December, we delivered record quarter-to-date net sales, exceeding the expectations we provided in November,” said Fran Horowitz, Chief Executive Officer.

“Total net sales growth was supported by comparable sales across regions and brands through the holiday selling period,” he added.

Analysts Raise Fiscal 2024 and 2025 Earnings Estimates

Given how bullish Abercrombie is, it’s not a surprise that the analysts are also bullish.

3 estimates were raised for the full year 2024 since the business update was provided. 1 was also lowered, however.

The Zacks Consensus Estimate rose by a penny to $10.64 during that time. That’s earnings growth of 69.4% as Abercrombie made just $6.28 in fiscal 2023.

2 estimates were also raised for fiscal 2025 in the last week as well. But 2 were also lowered. The Zacks Consensus Estimate for fiscal 2025 rose to $11.25 from $11.22 in the past 7 days.

That’s another 5.7% in earnings growth.

Here’s what the earnings consensus looks like on the chart.

Image Source: Zacks Investment Research

Abercrombie Stock Sells Off on the News: Is It Cheap?

But the business update was apparently not good enough for traders. The stock sold off on the news and is now down 19.4% over the last 6 months, versus the S&P 500 which is up 6.2% during that same time.

Image Source: Zacks Investment Research

The stock has had a volatile 6 months after reaching new highs in early 2024.

But Abecrombie is cheap on a fundamental basis. With the stock sell-off, but the rise in the earnings estimates, Abercrombie now trades with a forward price-to-earnings (P/E) ratio of just 12.2. A P/E ratio under 15 is usually considered a value.

For investors looking for a specialty retailer which is on trend and has sales momentum, then Abercrombie & Fitch should be on your short list.