Abercrombie & Fitch Co. (ANF) Is A "Good Growth Company," Says Jim Cramer

We recently published 12 Stocks Jim Cramer Discussed As He Said SpaceX’s Starlink Internet Could Help President Trump. Abercrombie & Fitch Co. (NYSE:ANF) is one of the stocks Jim Cramer recently discussed.

Abercrombie & Fitch Co. (NYSE:ANF) is a well-known American apparel retailer. The firm’s shares have lost 36% year-to-date, as it has struggled due to sluggish sales, which have plagued the retail sector. Abercrombie & Fitch Co. (NYSE:ANF)’s shares dipped by 9% in March after the firm’s 2025 sales growth guidance sat at a 4% midpoint, which was far below analyst estimates of 5.65%. The shares had dropped by a massive 25% in January, even though Abercrombie & Fitch Co. (NYSE:ANF) raised its fourth quarter midpoint growth guidance to 7.5% from an earlier 6%. Here is what Cramer said about the firm:

“Now I would say that Abercrombie, the actual Abercrombie division not that great, they still have inventory problems. But I also think that those are actually fixable. That’s a good growth company. I don’t want to write those guys off, they have good management. It’s way, way down.”

Cramer discussed Abercrombie & Fitch Co. (NYSE:ANF) in detail in June. Here is what he said:

“Abercrombie was a disaster until Fran Horowitz took over as CEO in 2017. She’s brought it back from the brink. And we can’t ignore that context when we’re thinking about one bad quarter from a half the business. […]

To me, it’s also the opportunity here. Right now Abercrombie is clearing out the wrong inventory, bringing in fresh product and given Horowitz’ tremendous track record, possibility of a big turnaround. I’m calling it huge! [presses Buy Buy Buy button].

We know she believes in the most recent quarter. She had the company repurchase $200 million worth of stock, 5% of the total outstanding shares. Strong commitment. Now Abercrombie is a small company – market cap of just $3.7 billion – and a huge short position standing at 13.8%.

If you think that Hollister can stay hot for another quarter and the Abercrombie brand can turn, this one could be explosive. Plus, unlike so many other retailers, Abercrombie really got ahead of the tariff issue. […] They source from 16 countries. Nice diversification.

And then here’s the real opportunity. Write this down. Next Tuesday, Matt Boss from JP Morgan on our network today. He’s the best retail analyst in the business. He has a buy on the stock. […]

If there’s any improvement at all in flagship Abercrombie, this stock could go bonkers. As people remember a year ago when this $78 stock stood at $178. […] You got my blessing to buy the stock on Monday. […]

I don’t usually recommend options here, but I can tell you that if I were to buy Abercrombie ahead of the talk on JP Morgan on Tuesday, I actually might even do it with deep in-the-money calls. And I never I never mention or recommend calls.”

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Disclosure: None. This article is originally published at Insider Monkey.