Update shared on28 Aug 2025
Fair value Decreased 2.09%Analysts have adopted a more cautious stance on Abercrombie & Fitch due to sector headwinds, limited upside near current valuations, prospects for lower 2025 earnings guidance, and tariff concerns, resulting in a modest reduction of the consensus price target from $114.25 to $111.86.
Analyst Commentary
- Increased caution towards the specialty apparel sector heading into the second half of 2025.
- Share price trading within 10% of the current price target, limiting near-term upside potential.
- Expectation of Abercrombie cutting its fiscal 2025 earnings guidance.
- Anticipation of higher tariffs negatively impacting earnings.
- Neutral outlook adopted due to these combined headwinds.
What's in the News
- Repurchased 600,000 shares for $50 million, completing 3.25 million shares (6.59% outstanding) for $251.22 million under the current buyback program.
- Raised full-year 2025 guidance: net sales growth of 5% to 7% (previously 3% to 6%), EPS of $10.00 to $10.50 (previously $9.50 to $10.50).
- Issued Q3 2025 guidance: net sales up 5% to 7%, EPS of $2.05 to $2.25.
- Announced multi-year partnership as Official NFL Fashion Partner, debuting a major “Style Concierge” campaign featuring NFL stars and athlete co-designed apparel, marking the brand’s largest advertising investment in sports.
Valuation Changes
Summary of Valuation Changes for Abercrombie & Fitch
- The Consensus Analyst Price Target has fallen slightly from $114.25 to $111.86.
- The Consensus Revenue Growth forecasts for Abercrombie & Fitch has fallen from 3.8% per annum to 3.5% per annum.
- The Net Profit Margin for Abercrombie & Fitch has fallen from 9.48% to 8.78%.
Disclaimer
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