12 Cheap Retail Stocks to Buy According to Hedge Funds

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

Forward P/E: 10.5

Number of Hedge Fund Holders: 51

Abercrombie & Fitch (NYSE:ANF) is a global omnichannel retailer that offers an assortment of apparel, accessories, and personal care products for men, women, and children. Its brands include Abercrombie & Fitch, Abercrombie Kids, and Hollister. Positive trends for Abercrombie & Fitch (NYSE:ANF) were reflected across all its working regions in fiscal Q3 2024. The Americas grew by 14% and delivered the sixth consecutive quarter of double-digital sales growth. APAC and EMEA grew by 32% and 15%, respectively.

The company delivered net sales of $1.2 billion in fiscal Q3 2024, up 14% from fiscal Q3 2023. This growth was attributed to the company’s strong playbook, which delivered value for existing and new customers. Its sales are growing primarily because more customers are responding to its experience and product voice.

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.”

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