One number stood out in the positive third-quarter sales update that Abercrombie & Fitch (ANF) gave earlier this month.

The teen-apparel retailer saw 41% growth in its direct-to-consumer business, which will help it achieve its ambitious goal of $1 billion in annual Internet sales. E-commerce sales have become a major focus area for teen-apparel retailers such as American Eagle Outfitters (AEO), Aeropostale (ARO) and Gap (GPS).

We currently have a price estimate of just about $64 for Abercrombie's stock, which is about 15% ahead of the market price.

See our full analysis for Abercrombie & Fitch

Abercrombie looks set to achieve its target

In the second quarter, Abercrombie emphasized growing its direct-to-consumer business as its prime strategy in the near term. The company has reiterated its target to become a $1 billion e-commerce brand in the foreseeable future largely as a result of its global shipping initiatives.

With solid growth of 41% this quarter, Abercrombie is well positioned to achieve its target. Internet sales accounted for 12.4% of total sales this quarter, compared with 11.1% last quarter and 10.6% in the third quarter of 2010.

Additionally the increasing contribution of Internet sales will also help Abercrombie improve margins since the direct-to-consumer business model carries higher margins than the retail business.

See our article: Technology's Implications for Teen Retailers: Rising eCommerce & the Smartphone Generation