Abercrombie & Fitch (NYSE:ANF) shares are trending higher today after the specialty retailer increased its financial outlook following robust holiday sales momentum.
The company’s fourth-quarter performance was driven by sustained strength in the Americas region and the highest-ever Q4 sales performance in its women’s business. Further, improved product and inventory management is expected to drive substantial gross margin gains at Hollister brands.
Buoyed by this momentum, ANF has raised net sales growth expectations for Fiscal Year 2023 to 14%-15% versus the prior outlook of 12%-14%. The operating margin for the year is now anticipated to be 11% compared to the previous 10% estimate.
For the fourth quarter, net sales are now seen rising in the high teens compared to previous estimates of low double-digit growth. In sync, its operating margin is seen improving to 15% versus the previous estimated range of 12% to 14%. Additional details could be expected from the company during the ICR Conference, which will be held from January 8 to 10.
What Is the Price Target for Abercrombie & Fitch?
ANF stock has been one of the standout performers of the current market rally, with a gain of nearly 266% over the past year. Following this rise, the Street has a Moderate Buy consensus rating on the stock, and the average ANF price target of $87.29 implies a potential downside of 3.6%.
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