ANF - Why You Should Give Abercrombie A Second Look

• With its massive rebranding strategy, Abercrombie is turning its head for a fresh start: its products resonate better with its consumers.
• Looking forward, we believe that the company's revenue growth target of a low-single-digit still sounds reasonable, although reduced markdowns could put revenue growth rate in a halt.
• Additionally, growing digital business, revamped stores, and lean inventory discipline might absorb the impact of reduced promotions and markdowns.
• Valuation-wise, ANF might only offer insignificant upside. However, if you are confident that the stock will trade at a higher multiple, buying ANF could be a sensible move.

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