The company’s stock traded lower as anxiety over a potential recession, inflation, supply chain challenges, and soaring transportation costs have swept over the entire specialty retail sector. ANF provided a detailed 2023 outlook, forecasting a 1% to 3% y-o-y revenue increase from $3.7 billion in 2022 – with the Abercrombie brand leading the growth amid a cautiously optimistic demand environment. We have revised ANF’s valuation to $25 per share, based on a $1.50 expected EPS and a 16.7x P/E multiple for the fiscal year 2023 – almost in line with the current market price.