tiprankstipranks
Trending News
More News >
Abercrombie Fitch (ANF)
NYSE:ANF
Advertisement

Abercrombie Fitch (ANF) AI Stock Analysis

Compare
2,060 Followers

Top Page

ANF

Abercrombie Fitch

(NYSE:ANF)

Rating:79Outperform
Price Target:
$101.00
▲(2.40%Upside)
Abercrombie Fitch's overall stock score reflects its solid financial performance and attractive valuation. The stock benefits from strong revenue growth and effective cost management. While technical indicators suggest bullish momentum, caution is advised due to potential overbought conditions. The earnings call provided insights into strategic growth initiatives and challenges, particularly concerning tariffs and margin pressures.
Positive Factors
Customer Reach
Abercrombie brand has successfully expanded its customer reach to an 18-40 year old demographic, supporting broad-based top-line results.
Revenue Outlook
Management raised the FY25 revenue outlook above prior growth range due to 1Q’s outperformance.
Sales Performance
Hollister continues to be strong, A&F is expected to inflect, and FY top-line guide was raised.
Negative Factors
Inventory Levels
Inventory levels increased significantly, which is seen as a temporary pressure for ANF.
Operating Margin
ANF lowered its operating margin guidance due to a $50M headwind from tariffs.
Promotional Activity
Decelerating A&F banner comps and higher promotional/discounting activity fuel investor fears of sales/profitability reversion risk.

Abercrombie Fitch (ANF) vs. SPDR S&P 500 ETF (SPY)

Abercrombie Fitch Business Overview & Revenue Model

Company DescriptionAbercrombie & Fitch Co. (ANF) is a leading global specialty retailer known for its casual luxury clothing and accessories. The company operates under several brands, including Abercrombie & Fitch, Abercrombie Kids, and Hollister Co., catering primarily to young adults and teenagers. With a strong emphasis on quality and style, ANF offers a wide range of products, including apparel, personal care items, and accessories, through its retail stores and online platforms worldwide.
How the Company Makes MoneyAbercrombie & Fitch Co. generates revenue primarily through the sale of clothing, accessories, and personal care products. The company's revenue model is based on direct-to-consumer sales through its network of retail stores and e-commerce platforms. Key revenue streams include the Abercrombie & Fitch brand targeting young adults, Abercrombie Kids for children, and Hollister Co., which focuses on a laid-back, beach-inspired lifestyle for teenagers. ANF's earnings are bolstered by strategic marketing efforts, brand loyalty programs, and the optimization of its digital channels to enhance customer engagement. Additionally, the company benefits from cost management strategies and inventory control to maximize profitability.

Abercrombie Fitch Key Performance Indicators (KPIs)

Any
Any
Revenue by Segment
Revenue by Segment
Analyzes revenue from different business segments, highlighting which areas drive growth and profitability for Abercrombie Fitch and where there might be opportunities or challenges.
Chart InsightsHollister's robust growth trajectory, highlighted by a 22% sales increase, contrasts with Abercrombie's 4% decline due to lower AUR from winter inventory. This divergence underscores Hollister's strong market positioning, particularly in fleece, jeans, and skirts, while Abercrombie faces challenges in optimizing its inventory strategy. Despite these mixed results, Abercrombie & Fitch Co. achieved record net sales, driven by Hollister's performance and regional growth, though tariff impacts and margin pressures remain concerns for future profitability.
Data provided by:Main Street Data

Abercrombie Fitch Earnings Call Summary

Earnings Call Date:May 28, 2025
(Q1-2025)
|
% Change Since: 27.84%|
Next Earnings Date:Aug 21, 2025
Earnings Call Sentiment Neutral
The call presented a mixed picture. Significant achievements included record-breaking net sales and Hollister's strong performance. However, challenges were noted with Abercrombie's sales decline, gross margin pressures, and expected tariff impacts.
Q1-2025 Updates
Positive Updates
Record Net Sales and Growth
Achieved record net sales of $1.1 billion, marking an 8% growth compared to the previous year, surpassing the expected range of 4% to 6%.
Hollister Brand Success
Hollister led the way with a 22% net sales growth, continuing its eighth consecutive quarter of growth, with strong performance in fleece, jeans, and skirts.
Global Sales Growth
All regions experienced net sales growth: Americas up 7%, EMEA up 12%, and APAC up 5%.
Shareholder Returns
Returned $200 million to shareholders through share repurchases, equating to 5% of shares outstanding.
Negative Updates
Abercrombie Brand Decline
Abercrombie brands experienced a 4% net sales decline and a 10% decline in comparable sales, primarily due to lower Average Unit Retail (AUR) as a result of winter carryover inventory.
Gross Margin Decline
Operating margin decreased to 9.3% from 12.7% last year, impacted by lower gross margin and carryover inventory issues.
Impact of Tariffs
Projected tariffs to impact full-year operating margin by 100 basis points, with $50 million cost impact assumed for 2025.
Company Guidance
During the Abercrombie & Fitch Co. first-quarter earnings call for fiscal year 2025, the company reported net sales of $1.1 billion, an 8% increase from the previous year, surpassing their expected growth range of 4% to 6%. Earnings per share for the quarter were reported at $1.59, exceeding the anticipated figures. The company highlighted strong performance in the Hollister brand, which experienced a 22% growth in net sales and a 23% increase in comparable sales. However, Abercrombie brands saw a 4% decline in net sales and a 10% decrease in comparable sales, primarily due to lower average unit retail (AUR) from winter inventory carryover. Abercrombie & Fitch Co. also noted robust sales growth across all regions, with the Americas growing by 7%, EMEA by 12%, and APAC by 5%. The company utilized a strong balance sheet to return $200 million to shareholders through share repurchases. Looking forward, they project a 3% to 6% increase in full-year net sales, with a focus on mitigating tariff impacts and maintaining a 12.5% to 13.5% operating margin.

Abercrombie Fitch Financial Statement Overview

Summary
Abercrombie Fitch exhibits strong financial health with consistent revenue growth, robust profitability, and stable cash flow generation. Despite a slight increase in leverage, the company's effective cost management and strong cash conversion support its position. The moderate increase in net profit margin and equity ratio further underscores its financial stability.
Income Statement
85
Very Positive
Abercrombie Fitch shows a strong financial position with a consistent increase in total revenue over the years, notably achieving a revenue growth of 17.5% from 2024 to 2025. Gross profit margin is robust at 63.2% TTM, reflecting effective cost management. However, net profit margin decreased slightly to 10.6% TTM from 11.4% in the previous year, indicating rising operational costs. Overall, the company's profitability and growth metrics are commendable within the apparel retail industry.
Balance Sheet
75
Positive
The balance sheet reveals a stable financial structure with a healthy equity ratio of 38.4% TTM. The debt-to-equity ratio increased slightly to 0.86 TTM from 0.71, suggesting a moderate increase in leverage. Return on equity improved significantly to 44.8% TTM from 42.4%, indicating efficient use of shareholder funds. Despite the increase in leverage, the company maintains a stable equity position, supporting its financial stability.
Cash Flow
78
Positive
Abercrombie Fitch demonstrates solid cash flow management with a free cash flow of $416.6 million TTM, albeit with a decline in free cash flow growth rate. The operating cash flow to net income ratio remains strong, highlighting effective conversion of earnings into cash. The free cash flow to net income ratio of 0.78 reflects good cash generation, supporting ongoing investments and financial obligations.
Breakdown
Income Statement
Total Revenue
Gross Profit
EBITDA
Net Income
Balance Sheet
Total Assets
Cash, Cash Equivalents and Short-Term Investments
Total Debt
Total Liabilities
Stockholders Equity
Cash Flow
Free Cash Flow
Operating Cash Flow
Investing Cash Flow
Financing Cash Flow

Abercrombie Fitch Technical Analysis

Technical Analysis Sentiment
Positive
Last Price98.63
Price Trends
50DMA
83.89
Positive
100DMA
79.67
Positive
200DMA
107.59
Negative
Market Momentum
MACD
3.86
Negative
RSI
66.84
Neutral
STOCH
73.41
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 98.63 is above the 20-day moving average (MA) of 91.84, above the 50-day MA of 83.89, and below the 200-day MA of 107.59, indicating a neutral trend. The MACD of 3.86 indicates Negative momentum. The RSI at 66.84 is Neutral, neither overbought nor oversold. The STOCH value of 73.41 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 25 risk factors in its most recent earnings report. Abercrombie Fitch reported the most risks in the "Macro & Political" 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

Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
$4.70B9.7146.98%12.54%25.47%
79
Outperform
$2.56B12.9044.55%7.89%-1.08%-8.20%
79
Outperform
$6.97B16.2819.55%8.38%52.18%
77
Outperform
$5.46B30.4617.44%14.64%21.68%
73
Outperform
$7.61B8.8929.16%3.17%1.07%28.03%
68
Neutral
$2.08B12.3112.19%4.34%-0.95%-10.51%
57
Neutral
HK$25.34B4.18-2.03%5.87%-0.23%-68.02%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ANF
Abercrombie Fitch
97.91
-48.09
-32.94%
AEO
American Eagle
11.53
-9.87
-46.12%
BKE
Buckle
49.45
9.97
25.25%
GAP
Gap Inc
19.86
-2.24
-10.14%
BOOT
Boot Barn
175.11
45.10
34.69%
URBN
Urban Outfitters
76.45
29.72
63.60%

Abercrombie Fitch Corporate Events

Executive/Board ChangesShareholder Meetings
Abercrombie Fitch Elects Directors at Annual Meeting
Neutral
Jun 12, 2025

At the Annual Meeting of Stockholders held on June 11, 2025, Abercrombie & Fitch Co. successfully elected ten director nominees to serve until the 2026 Annual Meeting. Additionally, stockholders approved the executive compensation for the fiscal year ended February 1, 2025, and ratified PricewaterhouseCoopers LLP as the independent registered public accounting firm for the fiscal year ending January 31, 2026.

The most recent analyst rating on (ANF) stock is a Buy with a $220.00 price target. To see the full list of analyst forecasts on Abercrombie Fitch stock, see the ANF Stock Forecast page.

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.Date of analysis: Jul 02, 2025