Abercrombie Fitch (ANF) AI Stock Analysis

• Market Cap: $3.95B
• Dividend Yield: N/A
• Average Volume (3M): 2.98M
• Price to Earnings (P/E): 8.1
• Beta (1Y): 1.29
• Revenue Growth: 12.54%
• EPS Growth: 25.47%
• Country: US
• Employees: 6,600
• Sector: Consumer Cyclical
• Sector Strength: 64
• Industry: Apparel - Retail
• EPS (TTM): 1.59
• Shares Outstanding: 47,638,630
• 10 Day Avg. Volume: 5,066,047
• 30 Day Avg. Volume: 2,978,988
• PEG Ratio: 0.15
• Price to Book (P/B): 4.54
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 11.51
• Enterprise Value/Market Cap: 1.58
• Enterprise Value/Revenue: 0.33
• Enterprise Value/Gross Profit: 1.97
• Enterprise Value/Ebitda: 1.84
• 1Y Price Target: $117.67
• Price Target Upside: 43.54% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11

• Rating: 65 Neutral
• Price Target: $85.00 ▲(3.68%Upside)

Abercrombie & Fitch's strong revenue growth and attractive valuation are key drivers of its positive stock score. The company's improved operational efficiency and strategic focus on Hollister's growth further bolster its prospects. However, challenges with margin pressures, potential tariff impacts, and fluctuating financial stability suggest caution. Technical indicators support the potential for stock appreciation, though the absence of a dividend yield and low equity levels present risks.

Positive Factors

Brand Performance

Hollister continues to be strong, A&F is expected to inflect, and FY top-line guide was raised.

Market Strategy

Sales momentum is expected to continue due to multi-year efforts in marketing, product, and in-store presentation.

Negative Factors

Inventory Levels

Inventory levels increased significantly, which is seen as a temporary pressure for ANF.

Operating Margins

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 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 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 Financial Statement Overview

Summary

Abercrombie Fitch demonstrates solid revenue growth and improved operational efficiency in recent years, but faces challenges with fluctuating margins and cash flow stability. The balance sheet shows improved leverage, though low equity levels in 2025 could pose risks. Overall, the company is on a positive trajectory but must manage potential volatility in its financial performance.

Income Statement

Abercrombie Fitch has shown a consistent revenue growth, particularly from 2023 to 2024, with a significant increase in net income. The gross profit margin has been strong, peaking at 62.92% in 2024. EBIT and EBITDA margins improved in 2024, indicating better operational efficiency. However, there were fluctuations in net profit margins, and there was a notable loss in 2021, which impacts overall stability.

Balance Sheet

The company's debt-to-equity ratio has improved, decreasing from 1.65 in 2020 to 1.01 in 2024, indicating reduced leverage. Return on equity was highest in 2022 at 31.83%, but fell in 2023. The equity ratio has been fairly stable, but low equity in 2025 poses potential risks. Overall, the balance sheet shows mixed signals with improved leverage but lower equity levels.

Cash Flow

Free cash flow turned positive in 2024 after being negative in 2023, with a significant growth rate of 396.86%. The operating cash flow to net income ratio was robust in 2024, suggesting effective cash generation relative to reported profits. However, negative cash flow metrics in 2023 highlight potential cash management concerns.

Breakdown
Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
4.95B	4.28B	3.70B	3.71B	3.13B
	Gross Profit
3.17B	2.69B	2.10B	2.31B	1.89B
	EBIT
740.82M	484.67M	92.65M	343.08M	-20.47M
	EBITDA
934.53M	659.71M	240.55M	494.99M	151.00M
	Net Income Common Stockholders
566.22M	328.12M	2.82M	263.01M	-114.02M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
888.95M	900.88M	517.60M	823.14M	1.10B
	Total Assets
3.30B	2.97B	2.71B	2.94B	3.31B
	Total Debt
951.61M	1.05B	1.22B	1.22B	1.55B
	Net Debt
178.89M	147.48M	706.59M	400.52M	445.48M
	Total Liabilities
1.95B	1.92B	2.01B	2.10B	2.37B
	Stockholders Equity
1.34B	1.04B	694.84M	826.09M	936.63M
Cash Flow		Free Cash Flow
527.47M	495.63M	-166.91M	177.02M	303.01M
	Operating Cash Flow
710.38M	653.42M	-2.34M	274.00M	404.92M
	Investing Cash Flow
-297.70M	-157.18M	-140.68M	-96.98M	-51.91M
	Financing Cash Flow
-534.88M	-111.20M	-155.33M	-446.90M	69.72M

Abercrombie Fitch Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 81.98
• 50DMA: Positive
• 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 Positive. The current price of 81.98 is above the 20-day moving average (MA) of 79.09, above the 50-day MA of 75.24, and below the 200-day MA of 116.71, indicating a neutral trend. The MACD of 1.45 indicates Negative momentum. The RSI at 54.38 is Neutral, neither overbought nor oversold. The STOCH value of 31.48 is Neutral, 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
URBN	81 Outperform	$6.27B	14.60	19.55%	―	8.38%	52.18%
BKE	75 Outperform	$2.22B	11.14	44.55%	3.19%	-1.08%	-8.20%
GAP	72 Outperform	$8.19B	9.56	29.16%	2.80%	1.07%	28.03%
BOOT	68 Neutral	$5.04B	28.56	17.44%	―	14.64%	21.68%
ANF	65 Neutral	$3.95B	8.07	46.98%	―	12.54%	25.47%
AEO	64 Neutral	$1.76B	10.40	12.19%	4.92%	-0.95%	-10.51%
Sector *	62 Neutral	$6.84B	11.41	2.80%	3.87%	2.70%	-24.58%

Abercrombie Fitch Corporate Events

Abercrombie & Fitch Raises Sales Outlook for 2024

Abercrombie & Fitch Co. has increased its net sales outlook for the fourth quarter and full fiscal year 2024 following better-than-expected holiday sales. The company anticipates a net sales growth of 7-8% for the fourth quarter and around 15% for the full year, while maintaining a strong operating margin. This improvement reflects the company’s effective brand strategies and operational execution, positioning it for sustainable, profitable growth and exceeding its ‘Always Forward Plan 2025’ targets.