10 Best Clothing Stocks To Invest In Now

4. Abercrombie & Fitch Co. (NYSE:ANF)

Analyst Upside: 27.89%

Number of Hedge Fund Holders: 51

Abercrombie & Fitch Co. is a global omnichannel retailer that offers an assortment of apparel, personal care products, and accessories for women, men, and kids. Its brand portfolio includes Abercrombie brands, which includes Abercrombie & Fitch and abercrombie kids, and Hollister brands, including Hollister and Gilly Hicks.

The company delivered net sales of $1.2 billion in fiscal Q3 2024, up 14% over fiscal Q3 2023. It also delivered strong comparable sales of 16%. This growth was attributed to the company’s strong playbook, which is delivering value for both new and existing customers. Abercrombie & Fitch is seeing an increasing number of customers responding to its product voice and experience, boosting sales.

The company’s solid brand health was reflected across all its regions, with the EMEA, Americas, and APAC all growing double digits in fiscal Q3 2024. The Americas grew by 14%, delivering the sixth consecutive quarter of double-digital sales growth in the region. APAC and EMEA grew by 32% and 15%, respectively.

The Abercrombie brands grew by 15% in fiscal Q3 2024 on top of the 30% growth in fiscal Q3 2023, attaining a third-quarter record for brand net sales. Jeans, dresses, sweaters, and fleece were the primary categories behind this growth, with category balance continuing across genders for the company.

Abercrombie & Fitch is focusing on its store expansion strategy to continue this positive momentum. It is planning to open around 40 new stores for Abercrombie brands in 2024, allowing customers convenience in the shopping season.

Carillon Eagle Small Cap Growth Fund stated the following regarding Abercrombie & Fitch Co. (NYSE:ANF) in its Q3 2024 investor letter:

“Abercrombie & Fitch Co. (NYSE:ANF) is a global multi-brand omnichannel specialty retailer of apparel, personal care products, and accessories for men, women, and kids. The stock lagged during the period despite reporting strong quarterly results and lifting forward guidance. We believe the performance is more a result of elevated investor expectations than any weakening of the underlying fundamentals, which we believe continue to remain strong.”