- Abercrombie & Fitch reported a solid Q1 report with revenue up 6% vs. 2019 levels, and continued strength in its digital business.
- The recent partnership with Charli & Dixie D'Amelio should help the company to reach more Gen Z customers, providing a strong tailwind for Hollister going forward.
- However, while Abercrombie is on track for an earnings breakout year in FY2021, the stock looks fairly valued heading into the Q2 earnings season.
- So, if we do see a rally on a strong Q2 report, I would view this as an opportunity to take profits into strength above $49.25 per share.
For further details see:
Abercrombie & Fitch: Take Profits Into The Next Rally