Latest news with #Abercrombie&Fitch
Globe and Mail
an hour ago
- Business
- Globe and Mail
Rising Costs Ahead: Can Abercrombie Hold the Line on Margins?
Abercrombie & Fitch Inc. ANF entered the first quarter of fiscal 2025 with strong sales momentum but with a strain on gross margins. Despite posting record net sales of $1.1 billion, up 8% year over year, the company saw its gross margin decline 440 basis points (bps). This deterioration was primarily due to elevated freight expenses and markdowns from carryover winter inventory within the Abercrombie brand. These factors forced ANF to lean more heavily on its operating leverage and efficiency gains to deliver an operating margin of 9.3%, down from 12.7% a year ago. The tariff environment added further weight to the company's profitability. ANF now assumes a 10% tariff on all global U.S. imports and a 30% tariff specifically on Chinese imports, resulting in an estimated $50 million margin headwind for fiscal 2025 despite mitigation efforts. While the company is not planning broad-based price increases, it continues to adjust its sourcing footprint and negotiate with vendors to preserve margins. Still, these adjustments will take time, and until then, the company's gross margin remains vulnerable. On the bright side, ANF's Hollister brand continues to outperform expectations, reporting a stellar 22% net sales growth driven by strong category performance and cultural alignment with its core teen customer. The strength of Hollister helped offset some of the weakness seen in Abercrombie brands, which faced a 4% decline in net sales due to promotional pressure and a tough comparison against last year's launch of the Wedding Shop. The company's agile operating model and ability to chase demand helped minimize inventory risk and position it for an expected rebound in the second half. Looking forward, management expects sequential improvement in gross margin as freight-related cost pressures ease and carryover inventory is worked through. While the road to margin normalization is challenged by factors like tariffs, ANF's strong brand equity, flexible supply chain and disciplined inventory management could enable it to weather the storm. However, with limited room to maneuver on pricing, any further cost escalation may pressure the company's ability to sustain recent profit growth. How ANF's Peers Navigate Rising Costs Like Abercrombie, American Eagle Outfitters AEO and Gap Inc. GAP are managing the pressures of elevated input and operational costs through agile supply chain strategies and margin-protection initiatives. AEO is taking a disciplined approach to inventory and cost management, much like ANF. The company has tightened its inventory buys and continues to reduce reliance on promotions by focusing on trend-right assortments and faster product cycles. To mitigate rising freight and sourcing costs, AEO is shifting more of its supply base closer to home and investing in logistics efficiency. AEO's ability to flex inventory levels and chase demand in-season mirrors Abercrombie's 'Read & React' playbook, enabling it to maintain healthy sell-throughs while minimizing markdown exposure. Gap, facing similar cost inflation challenges, is emphasizing supply-chain transformation and product margin enhancement. It has diversified its vendor base, accelerated nearshoring and focused on SKU rationalization to improve forecasting accuracy and lower logistics costs. Gap has prioritized full-price selling and cleaner inventories, particularly in brands like Banana Republic. In addition, the company is leveraging scale and technology to find cost efficiencies, aiming to rebuild margins without significantly raising prices. ANF's Price Performance, Valuation & Estimates Shares of Abercrombie have lost around 4.5% in the past three months against the industry's growth of 7.6%. From a valuation standpoint, ANF trades at a forward price-to-earnings ratio of 7.32X, significantly below the industry's average of 17.32X. The Zacks Consensus Estimate for ANF's 2025 earnings implies a year-over-year decline of 4.9%, whereas its 2026 earnings estimate implies year-over-year growth of 3.9%. The estimates for 2025 and 2026 have been southbound in the past seven days. ANF stock currently carries a Zacks Rank #4 (Sell). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Zacks Names #1 Semiconductor Stock It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom. With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028. See This Stock Now for Free >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Abercrombie & Fitch Company (ANF): Free Stock Analysis Report American Eagle Outfitters, Inc. (AEO): Free Stock Analysis Report The Gap, Inc. (GAP): Free Stock Analysis Report
Daily Mirror
4 hours ago
- Entertainment
- Daily Mirror
Stacey Solomon's pink midi dress is the perfect pick for a day at the races
Stacey Solomon wowed fans as she attended an event in a stunning pale pink midi dress from Club L London, and it's the perfect pick if you've got a day at the races pending There's nothing better than a summer soiree, and the best events need something a little special to mark the occasion. Whether you've got a day at the races, a summer wedding or a launch event like Stacey Solomon had this week, it's the perfect opportunity to dress up and feel your best. For her Airwick event, Stacey looked stunning in Club L London's Parina Pink Strappy Volume-Hem Midi Dress, and everything from its fit and flare shape to its pastel pink colour made it the perfect pick for formal summer occasions. Stacey's exact dress is still available to shop for £110, with her pink version still in stock as well as 11 other colours and prints to choose from. Stacey shared some snaps on her Instagram stories and was tagged in several photos on Instagram, including one of her and influencer Fatima Flatt together which showed off her gorgeous pink dress. Stacey even shared a video of herself post-event back at Pickle Cottage tending to her chickens and ducks whilst still wearing the dress – if that doesn't convince us of how comfortable it is, nothing will! Stacey's Parina Pink Midi Dress manages to be both tailored and flowing, with a fitted bodice that features a flattering and supportive square neckline, with wide shoulder straps. After nipping in at the waist, the dress then flares out into a flowing pleated midi skirt, with the whole dress made from a scuba crepe that helps smooth your figure. If you're looking for similar styles to Stacey's dress that are a little easier on your bank balance, we spotted two bargain alternatives. Abercrombie & Fitch has slashed the price of its £72 Mixed Fabric Bubble Hem Midi Dress to £49.99, and it comes in sizes XXS to XL and is available in petite, regular and tall lengths to get a perfect fit. It has a slightly more laidback look to Stacey's with a stretch cotton bodice and stiff poplin midi skirt. Meanwhile at Cider the Linen-Blend Square Neck Ruffle Midi Dress is just £29 and has a more structured corset-style body and voluminous midi skirt. However if Stacey's dress has caught your eye, you can pick it up in sizes six to 16 with Club L London's website suggesting that it runs big and to take a size down to get the perfect fit. The Parina Pink Midi Dress also has stretch to it thanks to the scuba crepe fabric, so it'll hug your curves and be comfortable enough to wear all day (and night).
Graziadaily
3 days ago
- Lifestyle
- Graziadaily
Everyone Stylish Is Wearing These Abercrombie Shorts – And They're In Stock
Now that outdoor temperatures have risen considerably, you may find yourself facing a sartorial dilemma: how to choose an outfit that's both incredibly chic and comfortable enough to withstand the heat. While you may opt for a pair of linen trousers or an airy midi skirt in a bid to keep cool and comfortable, there is one alternative that nails the balance between style and practicality with unfussy polish, and that is a pair of Bermuda shorts. It shouldn't come as a surprise that knee-length Bermuda shorts have begun to dominate the fashion pack, given their endorsement on the spring runways of Miu Miu and Dries Van Noten, not to mention the rise and rise of denim jorts. Naturally, the trend has filtered down to the high street, with brands like Massimo Dutti and COS offering their own takes on the silhouette. Our favourite iteration so far? The Abercrombie & Fitch Mid Rise Bermuda Short, crafted from a mid-weight fabric fit for the summer months. And the fashion crowd has fallen for them - hard. 1. Mid Rise Bermuda Short - Black Few Bermuda shorts look as chic as this tailored pair - classic black, no less. Style them with a matching black leather belt featuring a gold buckle for a bold statement, or opt for silver hardware for a more subtle touch that complements any outfit. Typically popular in clean-cut cottons, washed blue denim and leather, the Abercrombie shorts have taken a slightly more tailored approach - made from suiting-style fabric that has the feel of formal trousers, while maintaining a relaxed wearable silhouette. Available in two colours: a sleek black (which has unsurprisingly been selling out at record speed) and ash, a stone, light grey-beige hue that lends itself to a plethora of capsule wardrobe staples, including longline waistcoats and striped shirts. There's great news for anyone who prefers to stick to linen - there's a lightweight, soft version available to shop, too. They're the same style, same cut and same length as the originals, but this version comes in a crisp white shade that's perfect for the beach (paired with a matching linen shirt) or for evenings out with an Aperol in hand. For a nighttime look, opt for whimsical lace blouses or flirty asymmetrical strapless tops. As for footwear? Footbed sandals like Birkenstocks are ideal for daytime, while mule kitten heels will truly elevate the outfit once the sun goes down. 2. Mid Rise Linen-Blend Bermuda Short - White Alternatively, opt for the linen version in a crisp, cool white - perfect for beach holidays where heavy materials just won't do and beach-friendly outfit formulas are a must. Pair it with linen shirts for an effortlessly cool and comfortable look on hot days. Whichever version you choose, shop them quick before they sell out. We suspect they'll fly off the virtual shelves, as sizes are already dwindling in all colours, in both linen and non-linen. Shop the rest below. 3. Mid Rise Bermuda Short - Ash For a lighter take on the tailored favourite, opt for the Bermuda shorts in ash - perfect when paired with black tops featuring casual-cool cap sleeves or cotton boxy tees for a laid-back yet polished look. 4. Mid Rise Linen-Blend Bermuda Short - Black Shop the black linen shorts if you're looking for a cropped linen staple that looks as good as it feels - especially when your commute includes a stifling tube journey. Lightweight and breathable, they'll keep you comfortable all day long. Image credit: @marthawr and @saroop.k.s and @leahwashyp Emma Richardson is a fashion commerce writer for Grazia. She was previously a fashion and beauty commerce writer for Heat and Closer, and has contributed digital content for a variety of lifestyle brands. Emma finds much of her inspiration in celebrity style, with Sienna Miller often being a major influence, and loves a pair of ballet pumps and a trusted trench coat .
Yahoo
4 days ago
- Business
- Yahoo
Should You Invest in Abercrombie (ANF) Based on Bullish Wall Street Views?
Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter? Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Abercrombie & Fitch (ANF). Abercrombie currently has an average brokerage recommendation (ABR) of 1.90, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 10 brokerage firms. An ABR of 1.90 approximates between Strong Buy and Buy. Of the 10 recommendations that derive the current ABR, five are Strong Buy and one is Buy. Strong Buy and Buy respectively account for 50% and 10% of all recommendations. Check price target & stock forecast for Abercrombie here>>> While the ABR calls for buying Abercrombie, it may not be wise to make an investment decision solely based on this information. Several studies have shown limited to no success of brokerage recommendations in guiding investors to pick stocks with the best price increase potential. Are you wondering why? The vested interest of brokerage firms in a stock they cover often results in a strong positive bias of their analysts in rating it. Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations. In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement. Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision. Although both Zacks Rank and ABR are displayed in a range of 1--5, they are different measures altogether. Broker recommendations are the sole basis for calculating the ABR, which is typically displayed in decimals (such as 1.28). The Zacks Rank, on the other hand, is a quantitative model designed to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5. Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide. In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research. Furthermore, the different grades of the Zacks Rank are applied proportionately across all stocks for which brokerage analysts provide earnings estimates for the current year. In other words, at all times, this tool maintains a balance among the five ranks it assigns. Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements. In terms of earnings estimate revisions for Abercrombie, the Zacks Consensus Estimate for the current year has declined 7.1% over the past month to $10.18. Analysts' growing pessimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates lower, could be a legitimate reason for the stock to plunge in the near term. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #4 (Sell) for Abercrombie. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Therefore, it could be wise to take the Buy-equivalent ABR for Abercrombie with a grain of salt. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Abercrombie & Fitch Company (ANF) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Glasgow Times
13-06-2025
- Business
- Glasgow Times
Hollister opens new store at Glasgow shopping centre
Hollister officially welcomed customers to its new shop in Silverburn on Friday, June 13. The clothing chain, which is part of Abercrombie & Fitch, has more than 500 stores across the world. It offers clothing, accessories, and fragrances. (Image: Silverburn Shopping Centre) The new unit is located between Polestar and H. Samuel in the Southside shopping hub. READ NEXT: Signage for well-known coffee shop appears on former cinema building David Pierotti, General Manager of Silverburn said: 'Hollister's arrival marks the start of another brilliant summer here at Silverburn, adding another standout name to our already strong portfolio of fashion retailers. 'We are really pleased with how this year is shaping up. Guests can see how much investment has been directed into Silverburn and the type of brands we are attracting.' (Image: Silverburn Shopping Centre) Hollister is one of many new additions to the centre. Spanish brand Pull & Bear also opened its first-ever location in Glasgow at Silverburn in April. Zara launched a new flagship store at the centre in March, and H Beauty welcomed customers earlier this week. Elsewhere, King Pins is set to join the leisure offerings by opening a bowling alley this summer.
