Abercrombie & Fitch: Sharp Rallies Should Be Sold


  • Abercrombie & Fitch released its Q2 results last week, reporting quarterly revenue of $805.1 million, a 7% decline from the year-ago period.
  • While the company had a solid quarter from its Abercrombie segment with its ninth consecutive quarter of AUR growth, Hollister’s performance was disappointing.
  • The result is that earnings estimates have fallen considerably, with ANF on track to see a more than 90% decline in annual EPS from record levels in FY2022.
  • With the stock medium-term oversold, a rally is certainly possible, but I would view any rallies above $20.80 before year-end as selling opportunities.
Abercrombie & Fitch, The Grove, Los Angeles


Just over three months ago, I wrote on Abercrombie & Fitch (NYSE:ANF), noting that while the weaker margins would contribute to much lower earnings in FY2022, the stock would become interesting below $16.30 per share near support. However, I did not expect

Disclosure: I/we have a beneficial long position in the shares of SPY, CPRI either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: Disclaimer: Taylor Dart is not a Registered Investment Advisor or Financial Planner. This writing is for informational purposes only. It does not constitute an offer to sell, a solicitation to buy, or a recommendation regarding any securities transaction. The information contained in this writing should not be construed as financial or investment advice on any subject matter. Taylor Dart expressly disclaims all liability in respect to actions taken based on any or all of the information on this writing.

Leave a Reply

Your email address will not be published. Required fields are marked *