Abercrombie Fitch (ANF) AI Stock Analysis

• Market Cap: $4.39B
• Dividend Yield: N/A
• Average Volume (3M): 1.59M
• Price to Earnings (P/E): 9.2
• Beta (1Y): 1.62
• 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: 45,857,555
• 10 Day Avg. Volume: 1,162,971
• 30 Day Avg. Volume: 1,589,045
• 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: 1.34
• Enterprise Value/Revenue: 1.14
• Enterprise Value/Gross Profit: 1.92
• Enterprise Value/Ebitda: 6.56
• 1Y Price Target: $119.56
• Price Target Upside: 29.10% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11
• EPS Forecast (FY): 10.47
• Revenue Forecast (FY): $5.49B

• Rating: 74 Outperform
• Price Target: $102.00 ▲(10.14% Upside)
• Action: Reiterated Date: 01/13/26
• Date: Action: Reiterated 01/13/26

The score is driven primarily by strong financial performance (high margins, improved leverage, solid cash generation) and supportive earnings-call guidance. Valuation also helps due to a low P/E. Technicals are the main offset, reflecting recent weakness versus the 20-day average and a low RSI despite a broader uptrend.

Positive Factors

High and stable profit margins

Sustained gross margins near 62% and improving net margins above 10% indicate durable pricing power and an efficient cost structure. This margin cushion supports reinvestment in stores, digital, and marketing, funds share returns, and provides resilience versus cyclical cost pressures over the medium term.

Improved leverage and strong cash generation

A lower debt-to-equity of ~0.85 and ROE north of 42% reflect stronger capital efficiency and balance-sheet flexibility. Positive free cash flow growth enables capex, tech investment and buybacks while limiting refinancing risk, supporting strategic initiatives and financial durability across cycles.

Brand momentum led by Hollister

Hollister's consistent double-digit comparable growth demonstrates strong customer resonance and scalable cross-channel demand. Outperformance within the portfolio strengthens revenue diversification, supports margin expansion through higher productivity, and underpins medium-term top-line momentum.

Negative Factors

APAC sales weakness

A sustained double-digit comps decline in APAC is a structural growth headwind for international expansion. Persistent underperformance may require more localized merchandising, marketing spend, or distribution changes, reducing near-term revenue diversification and weighing on consolidated growth targets.

Tariff-driven margin pressure

Material tariff-related cost increases (c.210 bps) erode gross and operating margins and represent a persistent structural risk if trade policies remain adverse. Longer-term, tariffs can force price actions, compress margins, or require sourcing and supply-chain redesigns that are costly and time-consuming.

Abercrombie-brand sales softness

Declines in the Abercrombie brand and lower AUR suggest structural challenges in product positioning or pricing for the legacy label. If persistent, this weakens portfolio balance, forces promotional activity or investment to reposition the brand, and could limit margin and revenue upside from that segment.

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

Strong profitability (gross margin ~62% and improving net margin >10% TTM) and improved leverage (debt-to-equity ~0.85) support a high score. Cash flow is solid with positive free cash flow growth, but slightly weaker operating cash flow efficiency versus net income tempers the result.

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	Jan 2025	Jan 2024	Jan 2023	Jan 2022	Jan 2021
Income Statement
Total Revenue	5.18B	4.95B	4.28B	3.70B	3.71B	3.13B
Gross Profit	3.07B	3.02B	2.55B	1.96B	2.17B	1.71B
EBITDA	899.07M	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	2.04B	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: Neutral
• Last Price: 92.61
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• 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 92.61 is below the 20-day moving average (MA) of 96.07, below the 50-day MA of 107.77, and above the 200-day MA of 90.40, indicating a neutral trend. The MACD of -2.83 indicates Negative momentum. The RSI at 44.47 is Neutral, neither overbought nor oversold. The STOCH value of 41.00 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
URBN	82 Outperform	$5.82B	12.27	19.34%	―	11.09%	51.51%
BKE	79 Outperform	$2.74B	13.00	41.26%	6.82%	4.67%	3.46%
ANF	74 Outperform	$4.39B	9.20	40.72%	―	7.57%	1.75%
AEO	74 Outperform	$4.03B	20.41	12.36%	2.09%	-1.15%	-0.98%
VSCO	72 Outperform	$5.00B	30.56	31.50%	―	2.97%	9.85%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Abercrombie Fitch Corporate Events

Abercrombie Fitch Posts Record Holiday Sales, Reaffirms Outlook

On January 12, 2026, Abercrombie & Fitch reported record quarter-to-date holiday net sales through fiscal December 2025, with balanced growth across regions, brands and channels, and a particularly strong performance from Hollister Brands, which is on track for mid‑teens net sales growth for fiscal 2025. The company reaffirmed its expectation of record full-year fiscal 2025 net sales with at least 6% growth and operating margins around 13%, while modestly tightening its outlook ranges for fourth-quarter and full-year net income per diluted share, maintaining robust share repurchase plans and increased capital expenditures, and signaling continued investment in marketing, digital and stores to strengthen its long-term competitive position and returns to investors despite headwinds from tariffs.

The most recent analyst rating on (ANF) stock is a Buy with a $160.00 price target. To see the full list of analyst forecasts on Abercrombie Fitch stock, see the ANF Stock Forecast page.

Abercrombie & Fitch Promotes Robert J. Ball to CFO

On December 11, 2025, Abercrombie & Fitch Co. announced the promotion of Robert J. Ball to Executive Vice President and Chief Financial Officer, with changes to his compensation package reflecting his new role. This move is part of the company’s strategic efforts to strengthen its leadership team, potentially impacting its operational efficiency and market positioning.

The most recent analyst rating on (ANF) stock is a Buy with a $120.00 price target. To see the full list of analyst forecasts on Abercrombie Fitch stock, see the ANF Stock Forecast page.