BTIG raised its price target on Abercrombie & Fitch Co. to $175 from $120 on Wednesday, maintaining a Buy rating after the retailer posted second-quarter results that exceeded Wall Street expectations.
The brokerage cited Abercrombie’s earnings per share of $4.17, well above the $1.98 consensus estimate, and net sales of $1.27 billion, a 5% increase year-over-year and above the $1.25 billion forecast. Revenue totaled $1.3 billion, also surpassing estimates.
Abercrombie’s gross margin stood at 61.66% over the trailing twelve months, while its price-to-earnings ratio was 13.65, according to InvestingPro data. The company’s market capitalization was reported at $6.33 billion.
The upgrade reflects the company’s stronger-than-expected Q2 performance and a positive outlook for the third quarter. Management noted accelerating quarter-to-date sales momentum at the Hollister brand, which contributed to the outperformance. The company also highlighted improved receipt management in the Middle East, helping to mitigate headwinds in the region.
Abercrombie benefited from a substantial tariff refund during the quarter, which supported profit margins. Growth was reported across both major brands in the Americas, and the company has been executing aggressive stock buybacks, which have bolstered earnings per share growth.
BTIG’s revised target implies a 46% increase from the prior $120 level, signaling confidence in Abercrombie’s ability to sustain its operational momentum and margin expansion.
