Combined with its existing buyback program, the company could repurchase about 7.6 million shares -- more than 10% of the total 65.7 million shares outstanding as of June 14.
"This new share repurchase program reflects our ongoing confidence in our long-term strategy," said Fran Horowitz, CEO of Abercrombie & Fitch. "We remain committed to enhancing shareholder value as we execute against our transformation initiatives and make investments to drive consistent, future growth."
Analysts surveyed by FactSet have nine holds, four sells and one buy rating on the stock. The consensus target price is $20.69 and the market cap is $1.044 billion.
The retailer's dividend yield is 5.2%.
The stock was trading at $15.60, up 1.6% on Friday. The stock's 52-week range is between $14.66 and $30.63.