Why Is ANF Stock Soaring Before The Bell Today?

• The company sees annual earnings per share between $10.20 and $10.50, up from the previously estimated $10.00 to $10.50.
• Abercrombie’s third-quarter net sales rose 7% to $1.29 billion, compared with Wall Street estimates of $1.28 billion, according to data from Fiscal AI.
• Telsey Advisory Group analyst Dana Telsey said the Abercrombie & Fitch brand continues to face difficult comparisons, but the third-quarter results reflect some sequential improvement.

Abercrombie & Fitch (ANF) shares jumped 27% in early trading on Tuesday after the apparel maker raised the lower end of its annual net sales and profit forecasts heading into the holiday season and betting on growing demand for its namesake brand as well as Hollister’s products.

“Hollister brands grew 16% on a strong finish to back-to-school and fall seasonal transition,” CEO Fran Horowitz said, adding that Abercrombie brands made sequential progress in line with the company’s expectations.

“We are tightly managing inventory as we aim for fourth quarter brand net sales to be approximately flat to last year’s record,” Horowitz said.

Abercrombie now expects net sales to grow in the range of 6% to 7% for fiscal year 2025, compared with the prior forecast of 5% to 7% rise. The company sees annual earnings per share between $10.20 and $10.50, compared to the $10.00 to $10.50 previously estimated.

Abercrombie’s Partnership Bolsters Growth

The company in August said that its namesake brand announced a multi-season partnership with NFL Pittsburgh Steelers linebacker TJ Watt and his wife, former professional soccer player Dani Watt.

The first release of the co-designed collection for Abercrombie’s activewear brand, Your Personal Best (YPB), was made available in August. This has helped the company attract new customers to its stores.

Telsey Advisory Group analyst Dana Telsey said that the Abercrombie & Fitch brand continues to face difficult comparisons, but the third-quarter result reflects some sequential improvement, and the outlook for flat sales at the brand in the fourth quarter is encouraging.

Abercrombie’s Q3 Results

The company’s third-quarter net sales rose 7% to $1.29 billion, compared with Wall Street estimates of $1.28 billion, according to data from Fiscal AI.

Abercrombie’s quarterly adjusted earnings per share came in at $2.36, compared with expectations of $2.17.

How Did Stocktwits Users React?

Abercrombie & Fitch was one of the top-trending tickers on Stocktwits. Retail sentiment on the stock jumped to ‘extremely bullish’ from ‘neutral’ territory compared to a day ago, with message volumes at ‘extremely high’ levels, according to data from Stocktwits.

Shares of Abercrombie have declined by over 44% this year.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

Also See: Dick’s Sporting Goods Restructures Foot Locker Business With Some Store Closures, Inventory Cleanup

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