Abercrombie & Fitch: Earnings Surge Could Be Just The Beginning Of The Re-Rating

Abercrombie & Fitch Co. is reiterated as a Strong Buy, reflecting resilient performance and a significant valuation discount despite macro headwinds. ANF delivered its 14th consecutive growth quarter, beat EPS expectations, and raised 2026 guidance, with robust buybacks and a debt-free balance sheet. Management targets ~$450 million in 2026 buybacks (>12% yield), maintains aggressive expansion plans, and expects a more manageable tariff impact now.