Core Insights - Analysts project Abercrombie & Fitch (ANF) will report quarterly earnings of $2.27 per share, a decline of 9.2% year over year, with revenues expected to reach $1.19 billion, an increase of 4.8% from the same quarter last year [1] Earnings Estimates - The consensus EPS estimate has been revised downward by 0.3% over the past 30 days, indicating a collective reassessment by analysts [2] - Revisions to earnings estimates are crucial for predicting investor actions, as empirical research shows a strong correlation between earnings estimate trends and short-term stock price performance [3] Key Metrics Projections - Analysts estimate 'Net sales- Hollister' will reach $614.55 million, reflecting a year-over-year increase of 11.4% - 'Net sales- Abercrombie' is projected at $579.33 million, indicating a slight decline of 0.5% year over year - The estimated 'Comparable store sales - Total - YoY change' is 3.0%, down from 21.0% in the previous year [5] Comparable Store Sales - 'Comparable store sales - Hollister - YoY change' is expected to be 11.7%, down from 17.0% last year - 'Comparable store sales - Abercrombie - YoY change' is projected at -6.3%, a significant drop from 26.0% in the same quarter last year [6] Store Count - The consensus estimate for 'Number of stores - Total (EOP)' is 806, compared to 750 in the previous year [6] Stock Performance - Abercrombie shares have returned -1% over the past month, while the Zacks S&P 500 composite has increased by 1.1% - With a Zacks Rank 3 (Hold), ANF is expected to perform in line with the overall market in the near future [7]

Core Viewpoint - Wall Street anticipates a year-over-year decline in earnings for Abercrombie & Fitch, with a focus on how actual results compare to estimates impacting stock price [1][2]. Earnings Expectations - Abercrombie & Fitch is expected to report quarterly earnings of $2.27 per share, reflecting a year-over-year decrease of 9.2% [3][19]. - Revenue is projected to be $1.19 billion, which is an increase of 4.8% compared to the same quarter last year [3][19]. Estimate Revisions - The consensus EPS estimate has been revised down by 0.28% over the last 30 days, indicating a reassessment by analysts [4][19]. - Despite the downward revision, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, resulting in an Earnings ESP of +2.62% [12][19]. Earnings Surprise Potential - A positive Earnings ESP suggests a likelihood of beating the consensus EPS estimate, especially given the company's Zacks Rank of 3 (Hold) [12][20]. - Historically, Abercrombie has beaten consensus EPS estimates in the last four quarters, with a notable surprise of +17.78% in the last reported quarter [13][14]. Industry Context - Abercrombie & Fitch operates within the Zacks Retail - Apparel and Shoes industry, where it is positioned as a compelling earnings-beat candidate [18][20].

Group 1 - The second quarter earnings season has revealed that tariffs are increasingly affecting many companies' bottom lines [1] - Companies have been able to navigate some of the impacts of tariffs thus far [1] Group 2 - A small covered call position in ANF was taken during a significant market sell-off in early April due to the announcement of reciprocal tariffs [3]

Core Insights - The Retail-Wholesale sector is expected to show growth in sales and earnings, influenced by consumer sentiment and spending trends [1][2] - Anticipated top-line growth of 5.6% year-over-year and bottom-line growth of 12.6% for the second quarter of 2025 [2] Company Performance - Walmart Inc. (WMT) is positioned for stability and growth with a Zacks Rank of 2 and an Earnings ESP of +1.26%, expecting a 9% increase in earnings per share [9][11] - Abercrombie & Fitch Co. (ANF) has a Zacks Rank of 3 and an Earnings ESP of +2.62%, with a consensus estimate suggesting a 9.2% decrease in earnings per share [12][13] - Urban Outfitters, Inc. (URBN) holds a Zacks Rank of 3 and an Earnings ESP of +3.60%, with a consensus estimate indicating a 16.1% increase in earnings per share [14][15] - Burlington Stores, Inc. (BURL) has a Zacks Rank of 3 and an Earnings ESP of +6.06%, with a consensus estimate suggesting a 5.8% increase in earnings per share [16][17] Market Trends - Retail earnings are influenced by consumer preferences shifting towards essentials and value-oriented products due to inflation [4] - Retailers focusing on competitive pricing and product diversification are likely to see improved foot traffic and conversion rates [4] - E-commerce growth and omnichannel capabilities are critical for retail success, with companies enhancing online shopping experiences [6] - Efficient inventory management is essential for profitability, with advanced analytics aiding in stock optimization [7]

Group 1 - Abercrombie & Fitch Co. is currently trading at a lower valuation compared to most companies in the retail sector [1] - The thesis suggests that if Abercrombie continues to execute its plans and maintain current financial trends, it could present a potential investment opportunity [1]

Funding and Support - Abercrombie & Fitch Co. has pledged $15 million over six years to support behavioral health initiatives for children and young adults at Nationwide Children's Hospital and The Kids Mental Health Foundation [1][3] - The funding will enhance behavioral health crisis services and provide free educational resources [1][5] New Facility and Services - A new building at Nationwide Children's Hospital in New Albany, Ohio, will be named in recognition of Abercrombie & Fitch Co.'s support, housing a Close To HomeSM center that offers various health services [2][3] - The New Albany facility is scheduled to open in 2027 and will expand the existing network of 24 Close To HomeSM centers in Ohio [2] Partnership and Impact - The partnership between Abercrombie & Fitch Co. and Nationwide Children's Hospital dates back to 2002, focusing on improving outcomes for children [3] - The Kids Mental Health Foundation will be involved in Abercrombie & Fitch Co.'s annual music festival and fundraiser, The Challenge, scheduled for September 19, 2025 [3] Nationwide Children's Hospital Overview - Nationwide Children's Hospital is recognized as one of America's largest not-for-profit pediatric health care systems, with over 16,000 staff and more than 1.8 million patient visits annually [4] - The hospital is a leader in pediatric behavioral health and has the largest pediatric behavioral health network among children's hospitals in the U.S. [5] The Kids Mental Health Foundation - The Kids Mental Health Foundation provides free educational resources for parents, educators, and coaches, with over 24 million engagements with its materials [5][6] - The foundation aims to promote mental health as a vital part of every child's upbringing, supported by nearly 1,000 mental health professionals and researchers [6] Abercrombie & Fitch Co. Overview - Abercrombie & Fitch Co. is a global specialty retailer of apparel and accessories, operating approximately 790 stores across North America, Europe, Asia, and the Middle East [7] - The company focuses on providing quality products that cater to the lifestyle needs of kids through millennials [7]

Group 1 - American Eagle Outfitters Inc (AEO) has experienced a surge in stock price following a controversial denim campaign featuring actress Sydney Sweeney, which has led to increased retail trading activity and volatility [1] - AEO's stock is up 19.9% to $12.88, marking its largest single-day percentage gain since April 2020, while still reflecting a year-to-date deficit of 23.1% [2] - There is significant short interest in AEO, with 11.1% of the stock's available float sold short, indicating lingering pessimism among investors [2] Group 2 - Abercrombie & Fitch Co (ANF) has seen its stock rise 6% to $96.51, but it has declined 30.1% over the past nine months, with 14.2% of its float sold short [3] - Dick's Sporting Goods Inc (DKS) is up 0.4% to $207.49, attempting to recover from a four-day losing streak, but remains down 9.3% in 2025, with 9.1% of its float sold short [4] Group 3 - AEO is experiencing unusual options activity, with 123,000 calls and 31,000 puts traded, which is nine times the typical volume, indicating heightened investor interest [5]

Group 1 - The company typically avoids investing in the clothing sector due to consumer volatility, economic sensitivity, and intense competition [1] - Crude Value Insights focuses on oil and natural gas investments, emphasizing cash flow generation and identifying companies with growth potential [1] Group 2 - Subscribers have access to a stock model account with over 50 stocks, detailed cash flow analyses of exploration and production firms, and live discussions about the sector [2] - A two-week free trial is available for new subscribers to explore oil and gas investment opportunities [3]

Core Points - Abercrombie & Fitch Co. will host its quarterly earnings conference call on August 27, 2025, at 8:30 a.m. ET, with a press release on second quarter results expected at 7:30 a.m. ET [1] - Participants must register to access the conference call by phone [2] - Additional information can be found on the company's corporate website, which may serve as the primary source for important updates [3] Company Overview - Abercrombie & Fitch Co. is a global, digitally led omnichannel specialty retailer focused on apparel and accessories for kids through millennials [4] - The company operates a family of brands, including Abercrombie and Hollister, with a commitment to quality and comfort, supporting customers in their personal journeys [5] - Abercrombie & Fitch Co. has approximately 790 stores across North America, Europe, Asia, and the Middle East, along with e-commerce platforms [5] Investor Relations - For investor inquiries, contact Mo Gupta at (614) 283-6751 or via email [6] - Media inquiries can be directed to Kate Wagner at (614) 283-6192 or via email [6] - A live webcast of the earnings call will be available on the corporate website, with a replay accessible for one year after the event [6]

Group 1 - Abercrombie & Fitch's stock closed at $95.89, reflecting a -2.82% change from the previous day, underperforming compared to the S&P 500's loss of 0.37% [1] - Over the last month, Abercrombie & Fitch's shares increased by 9.82%, outperforming the Retail-Wholesale sector's gain of 2.03% and the S&P 500's gain of 2.68% [1] Group 2 - The upcoming earnings disclosure is anticipated, with projected earnings per share (EPS) of $2.26, indicating a 9.6% decrease from the same quarter last year, while revenue is expected to be $1.18 billion, reflecting a 4.45% growth [2] - For the full year, analysts expect earnings of $10.2 per share and revenue of $5.19 billion, representing changes of -4.58% and +4.83% from the previous year, respectively [3] Group 3 - Recent changes to analyst estimates for Abercrombie & Fitch suggest a favorable outlook on the company's business health and profitability [4] - The Zacks Rank system indicates that estimate changes correlate with near-term stock prices, with Abercrombie & Fitch currently holding a Zacks Rank of 3 (Hold) [5][6] Group 4 - Abercrombie & Fitch is currently trading at a Forward P/E ratio of 9.67, which is a discount compared to the industry average Forward P/E of 17.87 [7] - The Retail - Apparel and Shoes industry, part of the Retail-Wholesale sector, has a Zacks Industry Rank of 206, placing it in the bottom 17% of over 250 industries [7][8]