Abercrombie & Fitch Co. ANF looks well-poised to tap the positive trends in the fashion arena, thanks to its digital endeavors and other robust strategies. The company has been gaining from brand strength and solid demand for its products that resonate well with customers.
In a recent update, ANF has revealed a multi-year, franchise partnership with Myntra Jabong India Private, Ltd., Myntra’s business-to-business wholesale entity (Myntra Jabong), in a bid to extend its reach in India.
More on ANF’s Latest News
Myntra Jabong will have a brick-and-mortar store foothold in the country, regional e-commerce sites and branded digital storefronts through the life of the franchise agreement. These will be operated by a network of licensed and independent third parties.
Being among India’s key players in the fashion and lifestyle arena, Myntra Jabong is poised to grow the company’s brands within the country to drive a seamless, shopping experience.
Through this deal, the company looks to expand its footprint in India with top expertise and capabilities to accomplish brand growth globally, including omnichannel growth.
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Abercrombie’s Other Notable Efforts
Abercrombie is working toward rationalizing its store base by reducing its dependence on underperforming tourist-driven locations. As part of its store-optimization plans, the company plans to reposition larger format flagship locations to smaller omnichannel enabled stores.
During the first half of the fiscal year, it opened 18 stores, remodeled or rightsized 30 stores and closed 26 stores. New and remodeled stores have surpassed management’s expectations and the company is on track to deliver several new store experiences ahead. For fiscal 2024, management anticipates introducing 60 stores, remodeling and rightsizing 60 and closing 40.
Abercrombie notes that it is on track to achieve its 2024 target of demonstrating sustainable, profitable growth. This Zacks Rank #1 (Strong Buy) company continues to benefit from strength in its brands, driven by its focus on delivering high-quality, on-trend assortments for new and retained customers across regions and brands. It has also been focused on making strategic investments across stores, digital and technology, which are slated to strengthen the company in the long term.
In a nutshell, management is focused on creating a trend-right merchandise assortment, deepening relations with customers via marketing, enhancing the digital commerce agenda and efficiently controlling expenses. Such strengths are likely to continue driving the company’s results ahead.
Buoyed by such strengths, shares of this apparel and accessories dealer have surged 83.1%, impressively outperforming the industry’s 37.7% growth in the year-to-date period.
Other Key Picks
We have highlighted three other top-ranked stocks, namely Gap GAP, Deckers DECK and Urban Outfitters URBN.
Gap, a leading apparel retailer, currently sports a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.
GPS delivered an average earnings surprise of 101.2% in the trailing four quarters.
The Zacks Consensus Estimate for Gap’s current financial-year sales indicates growth of 0.8% from the year-ago figure.
Deckers, a footwear and accessories dealer, currently sports a Zacks Rank of 1. DECK delivered an average earnings surprise of 41.1% in the trailing four quarters.
The Zacks Consensus Estimate for Deckers’ current financial-year sales indicates growth of 13.6% from the year-ago figure.
Urban Outfitters, a fashion lifestyle specialty retailer, currently sports a Zacks Rank of 1. URBN delivered an average earnings surprise of 22.8% in the trailing four quarters.
The consensus estimate for Urban Outfitters’ current financial-year sales indicates growth of 6.4% from the year-ago figure.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Abercrombie & Fitch Company (ANF) : Free Stock Analysis Report
Deckers Outdoor Corporation (DECK) : Free Stock Analysis Report
Urban Outfitters, Inc. (URBN) : Free Stock Analysis Report
The Gap, Inc. (GAP) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
