Abercrombie & Fitch Seeks to Boost Earnings with Asia-Pacific Restructuring

Abercrombie & Fitch could boost earnings by reshaping its Asia-Pacific operations, analysts at Jefferies say. The region's growth is offset by persistent unprofitability, with operating income expected to remain negative at -$12 million in 2025. Jefferies believes that exiting APAC or shifting to a royalty-based structure could unlock significant earnings potential, with a potential EPS benefit of $0.40 and consolidated EBIT of $718 million in fiscal 2028. The firm maintains a 'Buy' rating on Abercrombie & Fitch with a price target of $130.