Research firm Argus upgraded Abercrombie & Fitch Co. to Buy from Hold, citing strong sales momentum and outperformance in the second quarter. The firm set a price target of $162, up from its previous rating.
Abercrombie & Fitch reported second-quarter earnings of $4.17 per share on revenue of $1.3 billion, surpassing analyst expectations of $1.98 per share and $1.25 billion in sales. The stock currently trades at $148.42, up 127% from its 52-week low.
Argus’ upgrade follows the company’s record overall sales in the quarter, with both the Abercrombie and Hollister brands contributing to growth. Management also raised guidance for revenue and margins after the quarter’s results.
BTIG raised its price target for Abercrombie & Fitch shares to $175 from $120, maintaining a Buy rating. UBS increased its target to $185 from $153. According to InvestingPro data, 10 analysts have revised their earnings estimates upward for the upcoming period.
The company’s last twelve months revenue reached $5.34 billion, with a gross profit margin of 63.67%. Analysts attributed the strong performance to robust demand at both brands, a tariff refund that improved margins, and successful brand repositioning efforts.
