Abercrombie & Fitch cut to Hold at Argus amid margin pressure, consumer caution

Argus analyst Taylor Conrad downgraded Abercrombie & Fitch to Hold from Buy. The company has struggled to expand margins amid inflation and currency headwinds, while a cautious consumer spending environment has weighed on its sales growth, the analyst tells investors in a research note. Argus also cuts its FY24 EPS view on Abercrombie & Fitch to $1.50 from $1.75 but adds that it would return the stock to the firm’s Buy list if margins improve and the company resumes dividend payments.