Abercrombie & Fitch seen as a strong buy with solid sales growth and tariff management despite market fears.

Abercrombie & Fitch (ANF) is considered a compelling contrarian buy due to its resilient fundamentals and effective tariff management. The company expects 3-5% net sales growth for the year, with improved supply chain strategies reducing tariff margin impact from -70bps to -20bps. Full-year EPS guidance is stable at $10.20-$11.00, supported by sales growth and share buybacks, despite costs from tariffs and ERP migration. With $619.2 million in cash, no debt, and a low price-to-earnings ratio of 6.3x for FY26 excluding cash, ANF offers an attractive risk-reward profile outside of the popular AI and chip sectors.