Abercrombie Fitch (ANF) AI Stock Analysis

• Market Cap: $4.70B
• Dividend Yield: N/A
• Average Volume (3M): 1.85M
• Price to Earnings (P/E): 9.7
• Beta (1Y): 1.34
• Revenue Growth: 12.54%
• EPS Growth: 25.47%
• Country: US
• Employees: 6,600
• Sector: Consumer Cyclical
• Sector Strength: 72
• Industry: Apparel - Retail
• EPS (TTM): 1.59
• Shares Outstanding: 47,643,314
• 10 Day Avg. Volume: 1,646,269
• 30 Day Avg. Volume: 1,850,972
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $118.11
• Price Target Upside: 19.75% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10

• Rating: 79 Outperform
• 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 Business Overview & Revenue Model

Company Description

Abercrombie & 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 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 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

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

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

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 Price: 98.63
• 50DMA: Positive
• 100DMA: Positive
• 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 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 Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ANF	79 Outperform	$4.70B	9.71	46.98%	―	12.54%	25.47%
BKE	79 Outperform	$2.56B	12.90	44.55%	7.89%	-1.08%	-8.20%
URBN	79 Outperform	$6.97B	16.28	19.55%	―	8.38%	52.18%
BOOT	77 Outperform	$5.46B	30.46	17.44%	―	14.64%	21.68%
GAP	73 Outperform	$7.61B	8.89	29.16%	3.17%	1.07%	28.03%
AEO	68 Neutral	$2.08B	12.31	12.19%	4.34%	-0.95%	-10.51%
Sector *	57 Neutral	HK$25.34B	4.18	-2.03%	5.87%	-0.23%	-68.02%

Abercrombie Fitch Corporate Events

Abercrombie Fitch Elects Directors at Annual Meeting

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.