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Abercrombie & Fitch Stock Surges 85.7% in 2024: Shoud You Buy it Now?

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In 2024, Abercrombie & Fitch Co. (ANF - Free Report) stock has grown leaps and bounds primarily due to expansion across regions. Its agile supply chain and astute financial discipline give it a competitive advantage, positioning the firm to deliver goals across various macro environments.

The company has a reputation for integrating digital and physical retail channels, offering a seamless shopping experience and driving higher customer satisfaction. Strategic and targeted marketing initiatives have also helped in boosting brand visibility. Its introduction of innovative product lines aids in meeting specific customer needs.

ANF’s expected earnings growth rate for the current year is 63.4%. The Zacks Consensus Estimate for its current-year earnings has improved 8.1% over the past 60 days. Abercrombie & Fitch has a VGM Score of A.

The share price of this Zacks Rank #1 (Strong Buy) company, which is part of the Zacks Retail – Apparel and Shoes industry, has surged 85.7% since the beginning of the year as of Oct. 16. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

In this period, the Zacks PeerGroups for ANF have declined 6.5%. To give an idea of how well ANF has done, two of its peers, Capri Holdings Limited (CPRI - Free Report) and Designer Brands Inc. (DBI - Free Report) , have receded 14.6% and 28.5%, respectively.

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For ANF, second-quarter 2024 marked the seventh consecutive quarter of net sales growth, showing the company’s strong financials amid this uncertain business environment. Net sales rose 21%, or $1.1 billion, in the quarter. Abercrombie & Fitch has a trailing four-quarter earnings surprise of 28%, on average. The company also revised its net sales guidance for full-year 2024 to 12-13% growth, up from previous projection of 10%. In addition, it expects double-digit sales growth in the third quarter. The Zacks Consensus Estimate for Abercrombie & Fitch’s current financial-year sales and earnings per share suggests growth of 13% and 63.4% from the a year ago.

It will thus be prudent to bet on Abercrombie & Fitch, which is likely to be boosted further with the interest rates coming down and discretionary expenditure rising. Also, the holiday season is just around the corner.


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