This beaten-down retailer just surged 35%. Jim Cramer says to pounce on the next pullback
CNBC's Jim Cramer said Thursday Abercrombie & Fitch still looks attractive, though he'd wait for the shares to cool off before buying.
TL;DR
- Abercrombie & Fitch shares surged over 35% after beating earnings expectations and raising its full-year outlook.
- Stronger-than-expected margins and profit forecasts overshadowed slightly disappointing comparable sales.
- A $100 million tariff refund and aggressive share repurchases contributed to earnings per share growth.
- The Abercrombie brand shows strength with increased full-price selling and NFL partnerships.
- Hollister remains a concern, but management indicated improving trends and acceleration.
- Cramer cautioned that part of the rally was likely due to short covering.
- He advised waiting for a pullback in the stock before buying, citing the retail industry's volatility.