Abercrombie Fitch (ANF) AI Stock Analysis

• Market Cap: $4.80B
• Dividend Yield: N/A
• Average Volume (3M): 2.07M
• Price to Earnings (P/E): 9.8
• Beta (1Y): 1.64
• Revenue Growth: 7.57%
• EPS Growth: 1.75%
• Country: US
• Employees: 6,600
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Retail
• EPS (TTM): 2.36
• Shares Outstanding: 47,069,817
• 10 Day Avg. Volume: 3,103,477
• 30 Day Avg. Volume: 2,070,835
• PEG Ratio: 0.15
• Price to Book (P/B): 4.54
• Price to Sales (P/S): 1.23
• P/FCF Ratio: 11.51
• Enterprise Value/Market Cap: 0.83
• Enterprise Value/Revenue: 0.77
• Enterprise Value/Gross Profit: 1.30
• Enterprise Value/Ebitda: 4.44
• 1Y Price Target: $107.63
• Price Target Upside: 5.62% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9
• EPS Forecast (FY): 9.86
• Revenue Forecast (FY): $5.26B

• Rating: 78 Outperform
• Price Target: $108.00 ▲(5.99% Upside)

Abercrombie Fitch's strong financial performance and positive earnings call are the most significant factors driving the stock score. The company's robust profitability, strategic investments, and growth in the Hollister brand contribute positively. However, technical indicators suggest caution due to potential overbought conditions, and valuation metrics indicate the stock is undervalued, offering potential upside.

Positive Factors

Revenue Growth

Consistent revenue growth over multiple quarters indicates strong market demand and effective business strategies, supporting long-term expansion.

Hollister Brand Performance

Exceptional growth in the Hollister brand suggests strong brand positioning and appeal, contributing significantly to overall company performance.

Investment in Technology

Investments in AI and technology enhance operational efficiency and customer experience, positioning the company for future growth in digital commerce.

Negative Factors

APAC Sales Decline

Declining sales in the APAC region highlight regional challenges that could impact global growth and require strategic adjustments.

Abercrombie Brand Sales Decline

Continued sales decline in the Abercrombie brand indicates potential brand fatigue or market saturation, necessitating brand revitalization efforts.

Tariff Challenges

Tariff-related margin pressures could affect profitability, requiring cost management and strategic sourcing to mitigate long-term impacts.

Abercrombie Fitch Business Overview & Revenue Model

Company Description

Abercrombie & Fitch Co., through its subsidiaries, operates as a specialty retailer. The company operates in two segments, Hollister and Abercrombie. It offers an assortment of apparel, personal care products, and accessories for men, women, and children under the Hollister, Abercrombie & Fitch, abercrombie kids, Moose, Seagull, Gilly Hicks, and Social Tourist brands. As of January 29, 2022, it operated approximately 729 retail stores in Europe, Asia, Canada, the Middle East, United States, and internationally. The company sells products through its stores; various third-party wholesale, franchise, and licensing arrangements; and e-commerce platforms. Abercrombie & Fitch Co. was founded in 1892 and is headquartered in New Albany, Ohio.

How the Company Makes Money

Abercrombie & Fitch generates revenue primarily through the sale of its clothing and accessories across its various retail brands. The company operates a multi-channel business model that includes physical retail stores, e-commerce platforms, and international sales. Key revenue streams include direct sales from brick-and-mortar stores and online shopping, where the latter has seen significant growth in recent years. The company also benefits from seasonal promotions and collaborations that attract customers. Additionally, Abercrombie & Fitch has established partnerships with various distributors and online platforms that help broaden its market reach. The focus on brand loyalty and customer engagement through marketing initiatives and social media also plays a pivotal role in driving sales and revenue growth.

Abercrombie Fitch Financial Statement Overview

Summary

Abercrombie Fitch demonstrates solid financial health with strong profitability and improved leverage. While revenue growth has moderated, margins remain robust, and cash flow generation supports ongoing operations. Continued focus on cash flow efficiency will be crucial for sustaining growth.

Income Statement

Abercrombie Fitch shows strong profitability with a consistent gross profit margin around 62% and a net profit margin improving to over 10% in TTM. Revenue growth is positive, though slightly slowing, indicating stable demand. EBIT and EBITDA margins are healthy, reflecting efficient operations.

Balance Sheet

The company has improved its debt-to-equity ratio to 0.85 in TTM, indicating better leverage management. Return on equity is robust at over 42%, showcasing effective use of shareholder funds. The equity ratio is stable, suggesting a balanced asset structure.

Cash Flow

Operating cash flow remains strong, though slightly decreased in TTM. Free cash flow growth is positive, supporting future investments. The free cash flow to net income ratio is healthy, indicating good cash conversion, but the operating cash flow to net income ratio has decreased, suggesting potential cash flow management challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.18B	4.95B	4.28B	3.70B	3.71B	3.13B
Gross Profit	3.06B	3.02B	2.55B	1.96B	2.17B	1.71B
EBITDA	898.67M	934.81M	659.71M	230.85M	487.10M	151.00M
Net Income	522.02M	566.22M	328.12M	2.82M	263.01M	-114.02M
Balance Sheet
Total Assets	3.48B	3.30B	2.97B	2.71B	2.94B	3.31B
Cash, Cash Equivalents and Short-Term Investments	631.04M	888.95M	900.88M	517.60M	823.14M	1.10B
Total Debt	1.13B	951.61M	1.05B	1.22B	1.22B	1.55B
Total Liabilities	2.15B	1.95B	1.92B	2.01B	2.10B	2.37B
Stockholders Equity	1.32B	1.34B	1.04B	694.84M	826.09M	936.63M
Cash Flow
Free Cash Flow	384.55M	527.47M	495.63M	-166.91M	180.80M	303.01M
Operating Cash Flow	620.62M	710.38M	653.42M	-2.34M	277.78M	404.92M
Investing Cash Flow	-205.88M	-297.70M	-157.18M	-140.68M	-96.98M	-51.91M
Financing Cash Flow	-496.86M	-534.88M	-111.20M	-155.33M	-446.90M	69.72M

Abercrombie Fitch Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 101.90
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 101.9 is above the 20-day moving average (MA) of 75.10, above the 50-day MA of 76.22, and above the 200-day MA of 83.13, indicating a bullish trend. The MACD of 4.84 indicates Negative momentum. The RSI at 78.25 is Negative, neither overbought nor oversold. The STOCH value of 94.79 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ANF.

Abercrombie Fitch Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ANF	78 Outperform	$4.80B	9.77	40.72%	―	7.57%	1.75%
URBN	77 Outperform	$6.64B	13.99	19.34%	―	11.09%	51.51%
BKE	76 Outperform	$2.92B	13.99	41.26%	6.84%	4.67%	3.46%
AEO	72 Outperform	$3.45B	19.64	12.17%	2.35%	-2.73%	-16.71%
VSCO	69 Neutral	$3.54B	24.69	26.29%	―	2.30%	8.85%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
GES	60 Neutral	$889.71M	16.24	16.63%	6.60%	6.44%	-8.90%

Abercrombie Fitch Corporate Events

Abercrombie & Fitch Reports Record Quarterly Sales

Abercrombie & Fitch Co. is a global specialty retailer known for its apparel and accessories, catering to a wide demographic from kids to millennials, with a focus on quality and comfort. The company operates several brands, including Abercrombie and Hollister, and maintains a strong presence both in physical stores and online.

Abercrombie & Fitch Shines with Record Growth

The recent earnings call for Abercrombie & Fitch Company painted a picture of robust performance, underscored by record-breaking revenue and growth. The sentiment was largely positive, driven by the success of the Hollister brand and strategic investments in technology. However, the company faces ongoing challenges in the APAC region and with tariffs impacting margins. While the Abercrombie brand is showing signs of improvement, it continues to grapple with sales declines.

Abercrombie & Fitch Reports Record Revenue Growth

The recent earnings call for Abercrombie & Fitch Company painted a picture of robust performance, marked by record-breaking revenue growth and strategic brand successes, particularly with Hollister. While the company celebrated its achievements, it also acknowledged challenges in specific regions and the looming impact of tariffs.

Abercrombie & Fitch Reports Record Quarterly Sales

Abercrombie & Fitch Co. is a global, digitally led, omnichannel specialty retailer of apparel and accessories, catering to a diverse age group from kids to millennials, with a focus on lifestyle-specific assortments. The company operates a family of brands, including Abercrombie and Hollister, known for their commitment to quality and comfort.