5. Abercrombie & Fitch Co. (NYSE:ANF)
Number of Hedge Fund Holders as of Q4: 51
Navellier & Associates’ Equity Stake: $7.82 Million
Upside Potential as of April 23: 65.64%
Abercrombie & Fitch Co. (NYSE:ANF), an American lifestyle retailer established in 1892, has always offered contemporary and stylish clothing. The company has recently demonstrated strong financial and operational momentum, highlighted by impressive results for the fourth quarter of fiscal year 2024, which ended on January 31. Abercrombie reported earnings per share (EPS) of $3.29, a notable 38% increase compared to $2.38 in Q4 of the previous year. This performance was driven by a strong holiday shopping season, full-price selling, effective product mix, disciplined cost control, and efficient inventory management, all contributing to a substantial improvement in operating margin.
The company’s strategic investments in store remodels and multichannel retailing aim to enhance its market positioning and deepen customer engagement. These efforts are part of a broader transformation strategy to modernize the brand experience and expand its reach across various channels. For the fourth quarter, net sales rose by 9%, while comparable sales increased by an impressive 14%. Over the full fiscal year 2024, Abercrombie & Fitch Co. (NYSE:ANF) achieved net sales of $4.95 billion, reflecting a 16% increase year-over-year, bolstered by 17% growth in comparable sales and double-digit gains across both geographic regions and brand portfolios.
Abercrombie & Fitch Co. (NYSE:ANF) is placed fifth among Louis Navellier’s stock picks with huge upside potential, as analysts project its growth potential as 65.64% and have set a price target of $124.13 on the stock.
Looking ahead, Abercrombie & Fitch Co. (NYSE:ANF) has issued a positive outlook for fiscal year 2025. The company projects net sales growth between 3% and 5%, and an operating margin in the range of 14% to 15%. Expected net income per diluted share is forecasted between $10.40 and $11.40, reinforcing confidence in its continued growth trajectory. Additionally, the firm announced a new $1.3 billion share repurchase authorization and plans to execute approximately $400 million in share buybacks during 2025.
ClearBridge Mid Cap Growth Strategy stated the following regarding Abercrombie & Fitch Co. (NYSE:ANF) in its Q3 2024 investor letter:
“We are encouraged by the high proportion of positive returns on new ideas added over the last five quarters of elevated new idea generation, with solid contributions to overall performance despite their representing a modest portion of the Strategy’s assets.
We continued to deliver strong new idea generation, adding four new investments in the quarter: OneStream (through participating in its IPO), Abercrombie & Fitch Co. (NYSE:ANF), Wintrust Financial, and FTAI Aviation.
Abercrombie & Fitch is a global retailer with two primary brands, A&F and Hollister, providing apparel and accessories targeting millennials and Gen Z, respectively. Following multiple years of mis-execution, the company has repositioned its brands for durable growth, rationalized its store footprint, and is growing profitably with a nimble, fast-follower fashion strategy.”
