Investors grew concerned when the consumer price index rose 6.2% year-over-year in October 2021, its biggest climb since December 1990. Furthermore, current supply chain constraints continue to perplex retailers. However, according to Statista, apparel sales in the United States grew…
The holiday season sales started earlier this year, benefiting retailers. And the apparel retail industry is expected to grow further with an increased focus on e-commerce. According to a Technavio report, the online apparel retailing market is expected to grow at a 10.6% CAGR through 2025.
Hence, Wall Street analysts expect quality apparel retail stocks Abercrombie & Fitch Co. (ANF – Get Rating) and Tilly’s, Inc. (TLYS – Get Rating) to rally by 35% or more in price in the near term. So, we think these stocks could be good additions to one’s portfolio.
Multi-brand omnichannel specialty retailer ANF, which is headquartered in New Albany, Ohio, operates through two segments: Hollister and Abercrombie. The company offers an assortment of apparel, personal care products, intimates, and accessories for men, women, and children.
ANF announced on October 28 that it had launched a same-day delivery service across its entire U.S. store fleet. The company’s executive vice president, supply chain and procurement, Larry Grischow, said, “We’re thrilled to add same-day delivery as another option in our portfolio of omnichannel services, which also include purchase online pick up in store, curbside pickup, reserve in store, ship from store and traditional parcel home delivery.”
ANF’s net sales were $905.16 million for its fiscal third quarter, ended October 30, 2021, up 10.4% year-over-year. The company’s adjusted non-GAAP net income came in at $52.61 million, up 9.1% year-over-year. Also, its adjusted non-GAAP EPS increased 13.2% year-over-year to $0.86.
For its fiscal year 2022, analysts expect ANF’s revenue to increase 21.3% year-over-year to $3.79 billion. The company’s EPS is expected to grow 750.7% year-over-year to $4.75 in the current year. In addition, it surpassed the consensus EPS estimates in each of the trailing four quarters. Over the past year, the stock has gained 68.8% in price to close yesterday’s trading session at $36.89. Wall Street analysts expect the stock to hit $50.67 in the near term, which indicates a potential 37.4% upside.
ANF’s strong fundamentals are reflected in its POWR Ratings. The stock has an overall B rating, which indicates a Buy in our proprietary rating system. The POWR Ratings assess stocks by 118 distinct factors, each with its own weighting.
Irvine, Calif.-based TLYS is a specialty retailer of casual apparel, footwear, accessories, and hard goods for young men, women, boys, and girls in the United States. Currently, the company operates through 238 stores across 33 states and online through tillys.com.
On December 2nd, Ed Thomas, the company’s President and CEO, said…
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