Long Position on ANF @ $56.00 on 9/29/2023 (Momentum)

Abercrombie & Fitch Co. (ANF) operates as a specialty retailer in the United States, Europe, the Middle East, Asia, the Asia-Pacific, Canada, and internationally. 

The company operates through two segments, Hollister and Abercrombie. It offers an assortment of apparel, personal care products, and accessories for men, women, and kids under the Hollister, Gilly Hicks, Social Tourist, Abercrombie & Fitch, and abercrombie kids brands.

The company sells products through its stores; various wholesale, franchise, and licensing arrangements; and e-commerce platforms.

Shares are on the verge of breaking out of their bullish "cup and handle" that was formed following it's latest earnings report. 

On August 23rd, ANF reported earnings of $1.10 per share on revenue of $935.35 million for the fiscal second quarter ended July 2023. The consensus earnings estimate was $0.13 per share on revenue of $837.37 million.  The company beat expectations by 511.11% while revenue grew 16.18% on a year-over-year basis.

Guided Higher:  The company said it expects third quarter revenue of $950.49 million to $968.09 million and fiscal 2024 revenue of approximately $4.068 billion. The company's previous guidance was revenue of $3.77 billion to $3.85 billion. The previous consensus revenue estimate was $896.56 million for the quarter ending October 31, 2023, and $3.82 billion for the year ending January 31, 2024.

Entry Point: $56.00

Stop Loss: $53.25

Trading Range: $14.43 to $56.14

Target Price: $61.60

Position closed on 10/11/2023 at price of $61.60 with a 10.00% gain in 12 days.

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