10 High-Flying Stocks to Buy Now

4) Abercrombie & Fitch Co. (NYSE:ANF)

% Increase on a YTD Basis: ~49%

Expected Upside Potential: 40.08%

Number of Hedge Fund Holdings: 48

Abercrombie & Fitch Co. (NYSE:ANF) operates as an omnichannel retailer in the US and internationally.

In Q2 2024, Abercrombie & Fitch Co. (NYSE:ANF) saw better-than-expected sales growth and profitability. The strength of its brand portfolio and improvements made in global capabilities led to broad-based growth throughout regions, brands, and channels. Abercrombie & Fitch Co. (NYSE:ANF) posted record Q2 2024 net sales of $1.1 billion, exhibiting a rise of  21% from last year, with comparable sales growth increasing 18%.

For FY 2024, Abercrombie & Fitch Co. (NYSE:ANF) expects net sales growth of between 12% – 13% from $4.3 billion in FY 2023. This reflects an increase from the previous outlook of ~10%. The company anticipates that Abercrombie brands should continue to outperform Hollister brands, with Americas leading the regional performance. Also, Abercrombie & Fitch Co. (NYSE:ANF) plans to continue to invest in brand and infrastructure. Moving forward, it plans to open 60 new stores, remodel or right-size 60 stores, and close 40 stores.

Abercrombie & Fitch Co. (NYSE:ANF)’s digital channel continues to experience double-digit growth, and this trend is expected to continue. The company has been managing its inventory closely and anticipates it to be well-controlled for the holiday season. Abercrombie & Fitch Co. (NYSE:ANF) is aging up its Abercrombie brand, aiming for mid-20s clients, with positive results in customer retention and new customer acquisition.

Wall Street remains optimistic about Abercrombie & Fitch Co. (NYSE:ANF) as its expansion plans and adjustments to the brand demographics demonstrate a forward-looking approach to market demands. Telsey Advisory Group reissued an “Outperform” rating, issuing a price objective of $190.00 on 11^th September.

Carillon Tower Advisers, an investment management company, released its second-quarter 2024 investor letter. Here is what the fund said:

“Abercrombie & Fitch Co. (NYSE:ANF) is a global multi-brand omnichannel specialty retailer that offers a broad assortment of apparel, personal care products, and accessories for men, women and kids. The stock was a strong performer during the quarter following an impressive earnings report that exceeded expectations and raised guidance amid a rough patch for the retail industry. The management team has made powerful strides in reenergizing the brand and transforming the concept to a different and larger audience.”