Abercrombie & Fitch Co. (NYSE:ANF) announced stellar fourth-quarter results. The lifestyle retailer generated net sales of $1.5 billion in Q4, up by 21% year-over-year on a constant currency basis and surpassed Street estimates of $1.43 billion. ANF’s comparable sales were up by 16% in the fourth quarter. The rise in sales was driven by growth across all its regions and brands.
The company reported adjusted earnings of $2.97 per share compared to $0.88 per share in the same period last year, which exceeded Street estimates of $2.83 per share.
Looking forward to the first quarter, ANF expects net sales to increase by low double-digits year-over-year with an operating margin of 8% to 10%. For FY24, the retailer has projected net sales to increase between 4% and 6%, with an operating margin of around 12%.
What Is the Target Price for ANF?
Analysts remain cautiously optimistic about ANF stock with a Moderate Buy consensus rating based on three Buys and four Holds. ANF stock has soared by more than 400% over the past year, and the average ANF price target of $119 implies a downside potential of around 15% at current levels. However, these ratings are likely to change following the announcement of ANF’s earnings today.
