- Telsey Advisory Group Analyst Dana Telsey reiterated an outperform rating on shares of Abercrombie & Fitch Co ANF with a Price target of $25.00.
- Despite a softening demand environment amid macroeconomic challenges for low-income consumers and significant uncertainty in Europe, management kept a fairly positive tone during the investor meetings hosted by the analyst and her team.
- Inventory levels are expected to be the right size to accommodate demand trends toward the holiday, Telsey said.
- The analyst added that the decline in orders from major players such as Walmart onec WMT and target company TGT creates a more favorable tracking environment.
- Freight traffic also appears to be finally becoming a tailwind for margin in the fourth quarter, with the benefit continuing into FY23, Telsey noted.
- The analyst continues to see an opportunity for long-term margin growth through a more productive in-store presence and expanding digital penetration.
- Price promotion: ANF shares are trading up 2.46% at $15.81 on the last check Friday.
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