Citi expects Abercrombie & Fitch Q1 EPS miss and guidance cut, but says it is mostly priced in

Abercrombie & Fitch Company’s (NYSE:) price target was cut to $24 from $32 per share at Citi, with analysts maintaining a Neutral rating on the stock in a note Thursday.

They said the firm anticipates a 1Q EPS miss driven by lower sales/GM, while they also expect a guidance cut.

“We model 1Q EPS of ($0.13) vs cons $0.01 based on sales down 1% (vs cons flat),” the analysts wrote. “While 1Q started off strong, we believe trends slowed in the back half of 1Q and into 2Q despite easier comparisons.”

Citi sees ANF guiding 2Q sales/EPS below consensus, with management striking a more cautious tone.

“We believe mgmt is likely to lower F23 sales guidance from +1-3% to flattish. We are lowering our F23E from $1.72 to $1.03 vs cons $1.48, and our 2QE from $0.12 to ($0.20) vs cons $0.03 based on weaker sales,” they added.

However, the analysts noted that with shares -19% since the company reported its and negative positioning, they believe “a weaker 1H/F23 guidance cut is largely anticipated,” and the stock’s “risk/reward is balanced into the print.”