Abercrombie & Fitch: Nearly The Cheapest It’s Ever Been, Double-Digit Growth Remains

Summary:

• ANF continues to report robust comparable sales growth in FQ3’24 while raising their FY2024 guidance for the third consecutive time – signaling its high growth cadence.
• The same has been observed in its expanding operating margins and triple-digit EPS growth, which directly triggered the raised consensus forward estimates.
• ANF’s sideways trading has also triggered its increasingly cheap valuations, compared to historical trends and its retail peers, triggering a richer upside potential.
• Even so, readers must note the potential risks arising from the hiked tariffs, since Vietnam comprises 34% of the retailer’s vendors based on location and China by 9% in FY2023.
• This is a material development indeed, since ANF’s sales/bottom lines may be impacted despite the Americas’ robust comparable sales thus far.

ANF Is Inherently Undervalued Here – Offering Opportunistic Investors With The Rich Upside Potential

We previously covered Abercrombie & Fitch Co. (NYSE:ANF) in October 2024, discussing why we had upgraded the stock to a Buy after the

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