From a breakout last June, fashion retailer Abercrombie & Fitch rocketed 343% before pulling back from yet another record high in March. Recently showcased on the IBD Breakout Stocks Index, ANF stock stands poised to pop once more.
As profiled in the 2022 Netflix documentary, "White Hot: The Rise & Fall Of Abercrombie & Fitch," the company went through a controversial period where issues of diversity within the company and its marketing came to the forefront. With a long history of volatility, ANF stock got hammered toward the end of 2021 as its fundamentals soured. By early September 2022, Abercrombie saw its Composite Rating from Investor's Business Daily sink to a dismal 3. The highest-possible score is 99.
But soon after finding a bottom in May of last year, Abercrombie sparked a spectacular rebound. Finding support at its 10-week moving average for the entire run, the stock continued to soar until pulling back to form its current base.
With its relative strength line back in an uptrend after retreating as the current base formed, Abercrombie has formed a consolation pattern with a 140.28 buy point.
Today, Abercrombie stock leads the Retail-Apparel/Shoes/Accessories industry group with strong 96 Composite Rating. That tops peers like Boot Barn, TJ Maxx parent TJX, Caleres, Urban Outfitters and American Eagle Outfitters.
Abercrombie was featured as the IBD Stock Of The Day on May 3.
See Who Joins Abercrombie & Fitch On The IBD Breakout Stocks Index
Abercrombie & Fitch Back In Fashion And Demand
With three home offices in Columbus, Ohio, along with London and Shanghai, Abercrombie & Fitch is a global retailer. It offers apparel and accessories for men, women and kids. In addition to its namesake brand, the company also owns the Hollister, Gilly Hicks and other labels.
In total, Abercromblie operates over 750 stores across North America, Europe, Asia and the Middle East.
The company has driven a sharp rebound in fundamentals. Including one report showing a loss, Abercrombie has posted average earnings growth of a whopping 6,311% over the last three quarters.
Revenue growth is back in the strong double-digits. In its latest report on March 6 for the fiscal fourth quarter ended Feb. 3, the retailer posted a 21% gain to over $1.45 billion.
Abercrombie reports numbers for its first quarter of fiscal 2025 on May 29. Analysts expect the rebound to continue with a 303% increase in earnings to $1.57 a share.
The company sports an SMR Rating of A, with a low debt-to-equity ratio of 21%.
Second Chance To Buy Abercrombie Stock
Keeping in mind that Abercrombie has already made a spectacular move, the stock now stands ready to expand its run with a fresh breakout. Essentially flat Wednesday, ANF stock closed 8% shy of the 140.28 buy point in its second-stage consolidation pattern.
Abercrombie has climbed back above its 10-week line as it readies to offer investors a second chance to initiate a position or add shares to an earlier one.
No one knows how Abercrombie & Fitch will report or how Wall Street will react. So stay ready to act on a move in either direction with sound rules for how to buy stocks and when to sell stocks.
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Follow Matthew Galgani on X, formerly Twitter, at @IBD_MGalgani.
