Abercrombie & Fitch Premarket Up 3% as Raymond James Cuts Target to $92
RJF•Raymond James cut Abercrombie & Fitch’s price target to $92 from $110, citing weaker Hollister performance due to soft discretionary spending and higher gas costs. ANF shares jumped over 3% in premarket trading ahead of fiscal Q1 earnings, with analysts expecting $1.12 billion revenue and $1.28 earnings per share.
1. Earnings Outlook
Abercrombie & Fitch will report fiscal first-quarter results today, with analysts forecasting $1.12 billion in revenue and $1.28 in earnings per share. The company projects sales growth between 1% and 3% and EPS in the range of $1.20 to $1.30, reflecting cautious consumer spending trends.
2. Price Target Reduction
Raymond James trimmed its price target for ANF to $92 from $110, noting slower performance at the Hollister brand due to softer discretionary spending and higher gas prices. The new target still implies roughly 23% upside, but highlights risks from increased promotional activity and weaker apparel demand in Europe.
3. Stock Performance Trends
ANF shares climbed over 3% in premarket trading and have declined nearly 40% from their January 52-week high above $133, trading in the upper-$70 range. The retreat reflects investor concerns about margin sustainability amid heavier discounting across the teen apparel sector.
4. Retail Trader Sentiment
Retail traders have shifted to a bullish stance on ANF, citing undervaluation and potential for continued margin gains. Social media commentary highlights confidence that the company can navigate a tougher retail environment and maintain profitability improvements.
