Abercrombie Fitch (ANF) AI Stock Analysis

• Market Cap: $3.37B
• Dividend Yield: N/A
• Average Volume (3M): 1.93M
• Price to Earnings (P/E): 6.8
• Beta (1Y): 1.42
• Revenue Growth: 9.34%
• EPS Growth: 10.61%
• Country: US
• Employees: 6,600
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Retail
• EPS (TTM): 2.32
• Shares Outstanding: 47,069,817
• 10 Day Avg. Volume: 1,706,935
• 30 Day Avg. Volume: 1,930,886
• 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: 1.46
• Enterprise Value/Revenue: 1.40
• Enterprise Value/Gross Profit: 2.26
• Enterprise Value/Ebitda: 7.93
• 1Y Price Target: $103.50
• Price Target Upside: 44.41% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: $87.00 ▲(21.39% Upside)

Abercrombie Fitch's strong financial performance and attractive valuation are significant positives. However, technical indicators show bearish momentum, and challenges in EMEA and tariff impacts pose risks. The earnings call provided a balanced view with both growth highlights and regional challenges.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term financial health.

Hollister Brand Success

Hollister's strong performance highlights effective brand positioning and consumer appeal, contributing to overall company growth.

Partnership with NFL

The NFL partnership enhances brand visibility and opens new marketing channels, potentially driving future sales growth.

Negative Factors

EMEA Performance Decline

Declining sales in EMEA could indicate regional market challenges, potentially impacting overall revenue and growth prospects.

Abercrombie Brand Sales Decline

The decline in Abercrombie brand sales suggests potential brand fatigue or misalignment with consumer preferences, affecting revenue.

Impact of Tariffs

Tariff impacts increase costs and pressure margins, potentially reducing profitability and financial flexibility in the long term.

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 direct sale of its products via physical retail stores and e-commerce platforms. The company's main revenue streams include the sale of clothing, accessories, and personal care items, with a significant portion of sales coming from its flagship stores and online channels. Additionally, the company benefits from seasonal promotions, limited-edition product releases, and loyalty programs that encourage repeat purchases. Abercrombie has also formed partnerships with various third-party retailers and e-commerce platforms to expand its reach, contributing to its overall earnings. The company continuously adapts its product offerings based on market trends and consumer preferences, which helps maintain its competitive edge and drive revenue growth.

Abercrombie Fitch Financial Statement Overview

Summary

Abercrombie Fitch shows strong financial performance with robust revenue growth and profitability. The balance sheet is stable with moderate leverage and high return on equity. However, the decline in free cash flow growth is a concern that needs addressing to ensure sustainable financial health.

Income Statement

Abercrombie Fitch has demonstrated strong revenue growth and improving profitability. The TTM data shows a gross profit margin of 61.98% and a net profit margin of 10.61%, indicating efficient cost management and profitability. The EBIT and EBITDA margins are also healthy at 15.14% and 18.13%, respectively. The revenue growth rate of 1.48% in the TTM period suggests a positive trend, although slightly lower than previous periods.

Balance Sheet

The company's balance sheet shows a stable financial position with a debt-to-equity ratio of 0.85, indicating moderate leverage. The return on equity (ROE) is strong at 42.73%, reflecting efficient use of equity to generate profits. The equity ratio stands at 39.14%, suggesting a balanced capital structure with a good proportion of equity financing.

Cash Flow

Cash flow analysis reveals some challenges, with a decline in free cash flow growth by 17.20% in the TTM period. However, the operating cash flow to net income ratio is 0.54, and the free cash flow to net income ratio is 0.61, indicating reasonable cash generation relative to net income. The company needs to focus on improving free cash flow generation to support future growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.51B	4.95B	4.28B	3.70B	3.71B	3.13B
Gross Profit	2.19B	3.17B	2.69B	2.10B	2.31B	1.89B
EBITDA	622.14M	934.53M	655.75M	229.50M	490.97M	149.26M
Net Income	353.77M	566.22M	328.12M	2.82M	263.01M	-114.02M
Balance Sheet
Total Assets	3.30B	3.30B	2.97B	2.71B	2.94B	3.31B
Cash, Cash Equivalents and Short-Term Investments	603.52M	888.95M	900.88M	517.60M	823.14M	1.10B
Total Debt	1.10B	951.61M	1.05B	1.22B	1.22B	1.55B
Total Liabilities	1.99B	1.95B	1.92B	2.01B	2.10B	2.37B
Stockholders Equity	1.29B	1.34B	1.04B	694.84M	826.09M	936.63M
Cash Flow
Free Cash Flow	88.20M	527.47M	495.63M	-166.91M	180.80M	303.01M
Operating Cash Flow	255.53M	710.38M	653.42M	-2.34M	277.78M	404.92M
Investing Cash Flow	-122.33M	-297.70M	-157.18M	-140.68M	-96.98M	-51.91M
Financing Cash Flow	-396.32M	-534.88M	-111.20M	-155.33M	-446.90M	69.72M

Abercrombie Fitch Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 71.67
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ANF, the sentiment is Neutral. The current price of 71.67 is above the 20-day moving average (MA) of 70.71, below the 50-day MA of 80.28, and below the 200-day MA of 85.83, indicating a neutral trend. The MACD of -2.40 indicates Negative momentum. The RSI at 43.63 is Neutral, neither overbought nor oversold. The STOCH value of 47.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ANF.

Abercrombie Fitch Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BOOT	77 Outperform	$5.69B	27.62	18.74%	―	17.82%	34.88%
BKE	76 Outperform	$2.93B	14.36	43.13%	6.70%	1.62%	-2.57%
URBN	74 Outperform	$5.73B	12.51	19.72%	―	9.63%	56.06%
ANF	73 Outperform	$3.37B	6.78	43.30%	―	9.34%	10.61%
AEO	71 Outperform	$2.90B	16.46	12.17%	2.81%	-2.73%	-16.71%
GAP	69 Neutral	$8.70B	10.08	28.07%	2.68%	-0.05%	15.17%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Abercrombie Fitch Corporate Events

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.