Abercrombie & Fitch (ANF, Financial) just dropped a blowout Q3 report, posting record net sales of $1.21 billion—up 14% year-over-year—with comparable sales soaring 16%. Adjusted EPS came in hot at $2.50, smashing analyst expectations of $2.39. Growth was broad-based, with all regions clocking double digits and APAC skyrocketing 32%. Operating income hit $179 million, a 30% jump, thanks to tighter margins and smarter cost control. Despite the fireworks, the stock dipped over 4% in premarket trading—proof the market loves playing hard to get—even as Abercrombie raised its full-year sales outlook to 14%-15%.
On the leadership front, the company is making moves. Abercrombie promoted 22-year veteran Robert Ball to CFO, a guy who's been behind the scenes pulling financial strings for years. Ball steps in just as former CFO Scott Lipesky settles into his new COO role. CEO Fran Horowitz didn't hold back on her praise, calling Ball a key player in Abercrombie's epic turnaround. Meanwhile, Wall Street heavyweights like Jefferies are taking note, upping their price target to $220 and betting on 7% EPS growth through FY2027—well above the market average.
Looking ahead, Abercrombie's gunning for a 16% operating margin in Q4, fueled by its holiday game plan. The company's balance sheet is rock solid, with $1.1 billion in liquidity and $130 million worth of shares repurchased so far this year. Add in Jefferies' optimism about margin expansion and boosted productivity, and Abercrombie seems primed to deliver sustainable growth. The real question: Can this retail comeback story keep wooing investors in a market that's always looking for the next big thing?
