Abercrombie & Fitch's outlook has turned positive due to performance improvement: S&P Global

S&P Global Ratings has revised its outlook for Abercrombie & Fitch Co. (NYSE: ANF) from stable to positive and confirmed its 'BB' credit rating. This outlook change is driven by the company's strong sales growth and profitability increase projected for the fiscal year 2024. S&P attributes this success to the effective implementation of transformation initiatives.

In fiscal 2024, the company's total revenue is expected to grow by 15.6%, following a 15.8% growth in the previous year. The growth is supported by an average unit retail expansion and increased consumer traffic, despite some impacts from the reporting period of 2023. S&P anticipates that Abercrombie & Fitch's growth will continue at a more normalized pace in 2025, reflecting the brand's strong performance and operational consistency even amid weakening consumer confidence.