Abercrombie & Fitch Co. (ANF) shares reached a 52-week high of $154.83, extending a one-year gain of 58.46%, after the retailer reported second-quarter profit that far outpaced Wall Street expectations.
The company posted earnings of $4.17 a share on revenue of $1.3 billion, topping analyst estimates of $1.98 a share and $1.25 billion in sales, respectively. Gross profit margins came in at 64%. Management cited strong consumer demand across both the Abercrombie and Hollister brands, along with a significant tariff refund that helped lift margins.
The earnings release prompted a wave of analyst action. Argus upgraded the stock to a Buy rating, pointing to record sales momentum in the quarter. UBS raised its price target to $185, while BTIG increased its target to $175.
Management also noted that the Hollister brand has shown a recent acceleration, helping to address prior performance concerns at the chain. InvestingPro analysis, citing the same data, concluded that the stock remains undervalued relative to its fair value estimate.
