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Sign InAnalysts at Jefferies have highlighted a significant opportunity for Abercrombie & Fitch (ANF) to boost its bottom line by reshaping its Asia-Pacific operations. While the region shows promising sales growth, it currently acts as a drag on overall profitability due to persistent operational losses. Adding to the company's momentum, the Hollister brand recently posted 15% sales growth, marking its 11th consecutive quarter of gains. However, management expects Hollister's growth to eventually normalize to mid-single digits over time. Jefferies suggests that addressing APAC inefficiencies, combined with sustaining brand performance, could lead to substantial margin expansion. The successful execution of these strategies is seen as a key catalyst for the company's future stock performance and investor confidence.