Jim Cramer’s Game Plan: 13 Stocks in Focus

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

Number of Hedge Fund Holders: 51

Cramer acknowledged that Abercrombie & Fitch Co. (NYSE:ANF) did not do well last quarter but expressed hope for the upcoming quarterly earnings report.

“Now we’ve seen a bunch of retailers’ reports not sweating numbers yet in many cases, their stocks still roared. Meanwhile, others like Target get clubbed like baby seals. It’s treacherous to start buying these now because many of these stocks have run mightily in the last few days… Abercrombie bombed last quarter. After listening to the success that is Gap last night, I don’t think ANF gets it wrong twice. They’re too good for that.”

Abercrombie & Fitch (NYSE:ANF), a prominent player in the retail industry, operates as an omnichannel retailer with a wide range of offerings, including apparel, personal care products, and accessories. These products are available under various brand names, including Abercrombie & Fitch, abercrombie kids, Hollister, and Gilly Hicks. According to Fran Horowitz, the Chief Executive Officer, the company experienced a strong performance in the first half of the year and raised its full-year outlook.

Horowitz expressed confidence in the company’s ability to achieve sustainable and profitable growth in 2024, highlighting its commitment to investing in key areas like marketing, digital technology, and physical stores to support long-term development.

For the third quarter, Abercrombie & Fitch (NYSE:ANF) expects net sales growth to increase by low double digits compared to $1.06 billion in net sales for the third quarter of fiscal 2023. Operating margins for Q3 are projected to be in the range of 13% to 14%, a slight improvement from the 13.1% operating margin seen in the same quarter of 2023.