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Abercrombie Fitch
(NYSE:ANF)
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Rating:80Outperform
Price Target:
$125.00
▲(14.78% Upside)
Action:Reiterated
Date:08/26/26
ANF scores well primarily on strong financial performance (sharp revenue and profitability improvement vs. 2023) and a positive earnings update with substantial planned buybacks. Technicals are supportive with price above key moving averages, and valuation looks attractive on a ~10.6 P/E. The main constraints on the score are leverage and softer cash-flow conversion, plus the non-recurring nature of tariff-refund benefits and ongoing cost/execution headwinds highlighted on the call.
Positive Factors
Sustained Revenue and Margin Growth
Strong top-line growth alongside healthy margins indicates improved brand relevance, pricing discipline and operating leverage. Although margins have normalized from 2025 peaks, profitability remains substantially stronger than in 2023.
Negative Factors
Non-Recurring Tariff Refund Benefit
A material portion of reported and guided earnings improvement is tied to a one-time tariff refund rather than underlying operations. When this benefit fades, margins and EPS will face a difficult comparison and require stronger organic execution.
Read all positive and negative factors
Positive Factors
Negative Factors
Sustained Revenue and Margin Growth
Strong top-line growth alongside healthy margins indicates improved brand relevance, pricing discipline and operating leverage. Although margins have normalized from 2025 peaks, profitability remains substantially stronger than in 2023.
Read all positive factors
Abercrombie Fitch Key Performance Indicators (KPIs)
Any
Revenue by Geography
Shows how much sales come from each region (for example, North America, Europe, and Asia/Pacific). Reveals dependence on U.S. mall traffic, pockets of international growth, and exposure to currency moves or regional retail trends that can drive or drag ANF’s top line.
Shows how much sales come from each region (for example, North America, Europe, and Asia/Pacific). Reveals dependence on U.S. mall traffic, pockets of international growth, and exposure to currency moves or regional retail trends that can drive or drag ANF’s top line.
Data provided by:
The Fly
The FlyAbercrombie Fitch (ANF) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.99B
Dividend YieldN/A
Average Volume (3M)1.11M
Price to Earnings (P/E)10.6
Beta (1Y)1.30
Revenue Growth5.13%
EPS Growth0.95%
CountryUS
Employees43,200
SectorConsumer Cyclical
Sector Strength84
IndustryApparel - Retail
Share Statistics
EPS (TTM)10.64
Shares Outstanding44,431,710
10 Day Avg. Volume966,966
30 Day Avg. Volume1,109,372
Financial Highlights & Ratios
PEG Ratio-2.36
Price to Book (P/B)3.29
Price to Sales (P/S)0.88
P/FCF Ratio12.21
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$130.00Price Target Upside19.38% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering13
EPS Forecast (FY)10.72
Revenue Forecast (FY)$5.45B
Abercrombie Fitch Business Overview & Revenue Model
Company Description
Abercrombie & Fitch Co., through its subsidiaries, operates as an omnichannel retailer in the Americas, Europe, the Middle East, Africa, and the Asia-Pacific. It offers an assortment of apparel, personal care products, and accessories for men, wom...
How the Company Makes Money
ANF makes money primarily by designing, sourcing, marketing, and retailing branded apparel and accessories at a markup over product costs. Its main revenue stream is net sales from selling merchandise through (1) direct-to-consumer channels—princi...
Abercrombie Fitch Earnings Call Summary
Earnings Call Date:Aug 26, 2026
(Q2-2026)
| Next Earnings Date:Nov 24, 2026
Earnings Call Sentiment Positive
The call presented a strong underlying performance with record Q2 sales, substantial margin and EPS improvements, solid regional growth (notably APAC), disciplined capital returns and visible progress on strategic initiatives (store experiences, partnerships, category expansion, and technology). However, a meaningful portion of the margin and EPS upside in the quarter was driven by a one-time IEEPA tariff refund, and there are execution and cost headwinds to monitor (freight, tariffs, inventory constraints in Hollister, and early-stage nature of new channels). On balance, the positive operational momentum, upgraded guidance, and strong capital return program outweigh the transient and early-stage risks discussed.Positive Updates
Record Q2 Net Sales
Delivered record second quarter net sales of $1.27 billion, a 5% increase year-over-year, marking the company's 15th consecutive quarter of top-line growth.
Negative Updates
Significant Contribution from Tariff Refunds to Margins
A substantial portion of Q2 margin outperformance was driven by non-recurring IEEPA tariff refunds: ~$100 million in Q2 contributed ~790 basis points to operating margin. Management notes the refund is unique in size and timing, underscoring that part of the margin strength is not recurring.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Q2 Net Sales
Delivered record second quarter net sales of $1.27 billion, a 5% increase year-over-year, marking the company's 15th consecutive quarter of top-line growth.
Read all positive updates
Company Guidance
Management updated 2026 guidance: full‑year net sales growth of around 5% (vs. $5.27B in 2025) with modest AUR improvement and ~30 bps FX benefit; full‑year operating margin raised to 14.5%–15.0% (including ~220 bps from total IEEPA tariff refunds of ~$120M — $100M recognized in Q2 and ~$20M expected in Q3); full‑year diluted EPS $13.10–$13.60 (including an estimated ~$2.10 refund benefit), tax rate ~29% and diluted weighted average shares ~44M; capex ~ $250M; ~130 net new store experiences (≈50 new stores, ~80 remodels/right‑sizes, ~20 closures); at least $500M of share repurchases for 2026 (Q2 repurchases $177M, YTD $282M, ~4% and 7% of beginning‑year shares repurchased, ~$568M authorization remaining); Q3 outlook: net sales +5%–6% to a $1.3B comparable, operating margin 13%–14% (including ~$20M/≈160 bps refund), EPS $2.90–$3.20 (including ~$0.35 refund), diluted shares ~43M (including at least $100M of Q3 buybacks); company expects ~10 bps full‑year gross margin favorability from current Section 301 rates (10%–12.5%) largely offset by higher freight; Q2 balance sheet metrics: cash $628M, liquidity ~$1.1B, marketable securities $10M, ending inventory at cost roughly flat with units up low single digits.Abercrombie Fitch Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
74
Positive
Cash Flow
77
Positive
| Breakdown | TTM | Jan 2026 | Jan 2025 | Jan 2024 | Jan 2023 | Jan 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 5.28B | 5.27B | 4.95B | 4.28B | 3.70B | 3.71B |
| Gross Profit | 3.21B | 3.24B | 3.17B | 2.69B | 2.10B | 2.31B |
| EBITDA | 867.45M | 878.17M | 934.53M | 655.75M | 229.50M | 490.97M |
| Net Income | 493.64M | 506.92M | 566.22M | 328.12M | 2.82M | 263.01M |
Balance Sheet | ||||||
| Total Assets | 3.45B | 3.54B | 3.30B | 2.97B | 2.71B | 2.94B |
| Cash, Cash Equivalents and Short-Term Investments | 619.22M | 784.58M | 888.95M | 900.88M | 517.60M | 823.14M |
| Total Debt | 1.29B | 1.17B | 951.61M | 1.05B | 1.22B | 1.22B |
| Total Liabilities | 2.10B | 2.12B | 1.95B | 1.92B | 2.01B | 2.10B |
| Stockholders Equity | 1.34B | 1.40B | 1.34B | 1.04B | 694.84M | 826.09M |
Cash Flow | ||||||
| Free Cash Flow | 416.05M | 378.37M | 527.47M | 495.63M | -166.91M | 180.80M |
| Operating Cash Flow | 667.40M | 619.14M | 710.38M | 653.42M | -2.34M | 277.78M |
| Investing Cash Flow | -181.35M | -150.77M | -297.70M | -157.18M | -140.68M | -96.98M |
| Financing Cash Flow | -408.50M | -495.39M | -534.88M | -111.20M | -155.33M | -446.90M |
Abercrombie Fitch Technical Analysis
Positive
108.90
Price Trends
98.34
Positive
91.12
Positive
94.11
Positive
Market Momentum
3.00
Positive
55.69
Neutral
58.72
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ANF, the sentiment is Positive. The current price of 108.9 is above the 20-day moving average (MA) of 108.44, above the 50-day MA of 98.34, and above the 200-day MA of 94.11, indicating a bullish trend. The MACD of 3.00 indicates Positive momentum. The RSI at 55.69 is Neutral, neither overbought nor oversold. The STOCH value of 58.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ANF.
Abercrombie Fitch Risk Analysis
Abercrombie Fitch disclosed 1 risk factors in its most recent earnings report. Abercrombie Fitch reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Abercrombie Fitch Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
86 Outperform | $6.51B | 14.38 | 17.64% | ― | 11.23% | 8.96% | |
80 Outperform | $4.99B | 10.56 | 36.89% | ― | 5.13% | 0.95% | |
72 Outperform | $2.29B | 10.14 | 46.91% | 10.36% | 6.22% | 8.74% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
60 Neutral | $2.83B | 10.22 | 17.24% | 2.94% | 6.22% | 65.05% |
* Consumer Cyclical Sector Average
ANF
Abercrombie Fitch
108.90
12.16
12.57%
AEO
American Eagle
16.73
4.88
41.13%
BKE
Buckle
43.73
-6.97
-13.74%
URBN
Urban Outfitters
75.78
-0.48
-0.63%
Abercrombie Fitch Corporate Events
Business Operations and StrategyExecutive/Board Changes
Abercrombie & Fitch appoints new independent board member
Positive
Aug 20, 2026
On August 18, 2026, Abercrombie Fitch Co.’s board expanded from nine to 10 members and elected Mary Fox, President of The Lovesac Company, as a non-associate director, with her term running until the 2027 annual meeting of stockholders. Fox...
Executive/Board ChangesShareholder Meetings
Abercrombie & Fitch Shareholders Back Board, Pay and Auditor
Positive
Jun 4, 2026
At its June 3, 2026 annual meeting, held via remote communication, Abercrombie Fitch Co. shareholders elected nine directors, including CEO Fran Horowitz, to one-year terms ending at the 2027 annual meeting, confirming the existing board lineup. ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.