Goldman Sachs has raised its price target for Abercrombie & Fitch Co. shares to $180 from $160, while maintaining a Buy rating. The firm also increased its Hollister comparable sales estimate by 100 basis points to flat versus last year ahead of the company’s third-quarter fiscal 2026 earnings report, scheduled for November 24, 2026. The revision reflects better intraquarter sales, improved foot traffic, and stronger data from the European Union showing reacceleration in both sales and web traffic.
The investment bank noted evidence of stronger average unit retail driven by full-price selling for the Abercrombie & Fitch banner, though it cautioned about potentially weaker conversion of better site and foot traffic. Goldman Sachs kept its Abercrombie & Fitch comparable sales estimate unchanged at positive 2%. The firm will focus on management commentary regarding year-over-year changes in promotional activity, Hollister’s back-to-school performance, and the reception to the Hollister x Target collaboration.
Goldman Sachs raised its price target reflecting a one-times increase to its price-to-earnings multiple of 13.5 times from 12.5 times previously on its quarter five through quarter eight earnings per share estimates. The stock currently trades at a P/E ratio of 13.22, close to Goldman’s new valuation framework. The firm cited better consumer engagement in both the United States and European Union and a favorable promotional environment.
In other recent news, Abercrombie & Fitch reported second-quarter earnings that surpassed Wall Street expectations, with a profit of $4.17 per share on revenue of $1.3 billion. The performance was bolstered by strong demand at both the Abercrombie and Hollister brands, along with a significant tariff refund that improved margins. The company posted record net sales of $1.27 billion for the quarter, marking a 5% increase from the previous year. Following these results, Argus upgraded Abercrombie & Fitch’s stock rating to Buy, highlighting the strong sales momentum.