We are reiterating our Buy rating, projections and price target for a.k.a. Brands with the company announcing 1Q24 (March) results after the close on Wednesday. We believe 1Q will be another period of rebuilding momentum and credibility, with the cleanup continuing at Culture Kings, Princess Polly adding new retail stores to the mix and rolling out new categories to become even more of a lifestyle brand and Petal & Pup leveraging new digital marketplace relationships and continued dress-driven expansion. Further, we believe management remains laser focused on reducing both inventory exposure and net debt. As such, we remain upbeat on the upside potential for the company in 2H24 and reiterate our Buy rating and $14 price target.
01 May 2024
AKA: 1Q Preview: Building for the Future; Reiterate Buy, Price Target
Abercrombie & Fitch Co (ANF:NYSE), 0 | Abercrombie & Fitch Co. Class A (ANF:NYS), 0 | American Eagle Outfitters (AEO:NYSE), 0 | American Eagle Outfitters, Inc. (AEO:NYS), 0 | Gap (GPS:NYSE), 0 | Gap, Inc. (GPS:NYS), 0 | URBAN OUTFITTERS (URBN:NYSE), 0 | Urban Outfitters, Inc. (URBN:NAS), 0 | Guess? (GES:NYSE), 0 | Guess?, Inc. (GES:NYS), 0 | Inditex (ITX:BME), 0 | Industria de Diseno Textil, S.A. (ITX:MCE), 0
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AKA: 1Q Preview: Building for the Future; Reiterate Buy, Price Target
Abercrombie & Fitch Co (ANF:NYSE), 0 | Abercrombie & Fitch Co. Class A (ANF:NYS), 0 | American Eagle Outfitters (AEO:NYSE), 0 | American Eagle Outfitters, Inc. (AEO:NYS), 0 | Gap (GPS:NYSE), 0 | Gap, Inc. (GPS:NYS), 0 | URBAN OUTFITTERS (URBN:NYSE), 0 | Urban Outfitters, Inc. (URBN:NAS), 0 | Guess? (GES:NYSE), 0 | Guess?, Inc. (GES:NYS), 0 | Inditex (ITX:BME), 0 | Industria de Diseno Textil, S.A. (ITX:MCE), 0
- Published:
01 May 2024 -
Author:
Eric Beder -
Pages:
4
We are reiterating our Buy rating, projections and price target for a.k.a. Brands with the company announcing 1Q24 (March) results after the close on Wednesday. We believe 1Q will be another period of rebuilding momentum and credibility, with the cleanup continuing at Culture Kings, Princess Polly adding new retail stores to the mix and rolling out new categories to become even more of a lifestyle brand and Petal & Pup leveraging new digital marketplace relationships and continued dress-driven expansion. Further, we believe management remains laser focused on reducing both inventory exposure and net debt. As such, we remain upbeat on the upside potential for the company in 2H24 and reiterate our Buy rating and $14 price target.