Abercrombie & Fitch Added to JPMorgan’s Positive Catalyst Watch as Shares Rise

Shares in Abercrombie & Fitch experienced an uptick in US premarket trading on Friday after analysts at JPMorgan Chase added the clothing retailer to its Positive Catalyst Watch list, signaling their confidence in the stock’s near-term potential.

In a recent note, the analysts highlighted that Abercrombie & Fitch has benefited from increased momentum in both its flagship brand and its Hollister division, especially during the critical back-to-school shopping season. They noted that promotional activities in both segments have been “more favorable.”

The analysts also observed strength across a variety of categories, demographics, and regions as the company prepares for its third-quarter earnings, despite concerns about a weather-related slowdown affecting the industry.

Additionally, they pointed out that Abercrombie & Fitch primarily imports goods through West Coast ports, allowing the company to more easily navigate challenges posed by a recent multi-day strike by dockworkers on the US East and Gulf coasts. The firm’s supply chain teams effectively managed the situation due to their ability to foresee and adapt to changing circumstances. A resolution was reached this week to suspend the labor action.

JPMorgan raised its target share price for December 2025 by $1 to $195 and maintained its “Overweight” rating on Abercrombie & Fitch’s stock.

The analysts commented, “Following improvements in marketing and merchandising over the last few years, the Abercrombie brand has successfully broadened its appeal to customers aged 18-40, supported by strong global customer acquisition and broader topline growth, along with increased full-price sales.”

In August, Abercrombie & Fitch had elevated its annual revenue guidance following higher-than-expected quarterly sales, although the shares dropped at that time as analysts anticipated an even more substantial increase in forecasts.

Despite this, the stock has shown impressive performance in 2024, rising by 52% so far this year.