Abercrombie & Fitch Co. ANF continues to strengthen its physical retail footprint as part of its broader growth strategy. For fiscal 2026, the company expects to deliver approximately 130 net new store experiences, including 50 new stores and 80 remodels and rightsizes, against roughly 20 closures. New stores are expected to be relatively balanced across the Abercrombie and Hollister brands and weighted toward the Americas. The initiative reflects ANF’s focus on combining selective new-store openings with modernization of its existing fleet to create more productive and engaging shopping environments.
Management remains confident in the runway for store expansion. ANF noted that 2026 marks its fifth consecutive year as a net store opener, underscoring the consistency of its real estate strategy. Rather than viewing store growth as having a fixed endpoint, management continues to identify opportunities across markets and formats. The recently opened Abercrombie SoHo location has been particularly encouraging, with customer response described as strong and the business performing above expectations. The company plans to incorporate elements of the SoHo concept into additional stores over time.
The store strategy also complements Abercrombie & Fitch’s broader push to expand its reach through digital channels, partnerships and new product categories. Management has emphasized continued investment in owned-and-operated stores and digital businesses while layering in growth from third-party channels. If new locations, remodels and rightsizing initiatives continue to improve the customer experience and support brand momentum, the physical fleet could remain an important contributor to ANF’s longer-term growth. However, execution will be key as the company balances expansion spending with its focus on maintaining healthy profitability and disciplined capital allocation.
ANF’s Zacks Rank & Share Price Performance
Shares of this Zacks Rank #1 (Strong Buy) company have jumped 46% in the past six months, outperforming the industry and the broader Retail-Wholesale sector, which fell 6.1% and 0.7%, respectively.
ANF Stock's Six-Month Price Performance
Image Source: Zacks Investment Research
ANF currently trades at a forward 12-month P/E ratio of 11.15X, which is lower than the industry average of 12.24X and notably below the sector average of 20.89X. This valuation positions the stock at a modest discount relative to both its direct peers and the broader consumer staples sector.
ANF P/E Ratio (Forward 12 Months)
Image Source: Zacks Investment Research
Other Stocks to Consider
We have highlighted three other top-ranked stocks in the retail space, namely, FIGS Inc. FIGS, Deckers Outdoor Corporation DECK and Boot Barn Holdings, Inc. BOOT.
FIGS is a direct-to-consumer healthcare apparel and lifestyle brand, and it currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for FIGS’ current financial-year sales indicates growth of 19.7% from the year-ago reported number. The company delivered a trailing four-quarter earnings surprise of 201.8%, on average.
Deckers is a leading designer, producer and brand manager of innovative, niche footwear and accessories. It carries a Zacks Rank #2 at present. DECK delivered a trailing four-quarter average earnings surprise of 15.2%.
The Zacks Consensus Estimate for Deckers’ current fiscal-year earnings and sales indicates growth of 6.8% and 7.9%, respectively, from the year-ago actuals.
Boot Barn operates specialty retail stores in the United States and internationally. At present, it carries a Zacks Rank of 2.
The consensus estimate for Boot Barn’s current fiscal-year sales and earnings implies growth of 15.8% and 23.5%, respectively, from the year-ago figures. BOOT delivered a trailing four-quarter earnings surprise of 11.4%, on average.
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Abercrombie & Fitch Company (ANF): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).