- 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.
For further details see:
Why You Should Give Abercrombie A Second Look