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Abercrombie Fitch
(NYSE:ANF)
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Rating:72Outperform
Price Target:
$103.00
▲(9.16% Upside)
Action:Reiterated
Date:06/05/26
The score is driven mainly by strong financial performance (material improvement vs. 2023) and supportive valuation (low P/E). These positives are tempered by weak technical trends (below key moving averages with negative MACD) and near-term earnings-call headwinds (tariffs, ERP drag, and EMEA softness) despite reiterated guidance and continued buybacks.
Positive Factors
Revenue & profitability recovery
Abercrombie has materially improved operating performance versus 2023, with TTM revenue up ~31% and durable gross/net margin recovery. This reflects stronger unit economics and merchandise mix that underpin sustainable earnings power over the next several quarters.
Negative Factors
Meaningful leverage limits flexibility
Debt-to-equity around ~0.83x, while improved, remains material for a specialty retailer. In a softer retail cycle this leverage can constrain reinvestment, limit optionality on M&A or store growth, and increase sensitivity to cash-flow variability over the coming months.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue & profitability recovery
Abercrombie has materially improved operating performance versus 2023, with TTM revenue up ~31% and durable gross/net margin recovery. This reflects stronger unit economics and merchandise mix that underpin sustainable earnings power over the next several quarters.
Read all positive factors
Abercrombie Fitch Key Performance Indicators (KPIs)
Any
Revenue by Geography
Shows how much sales come from each region (for example, North America, Europe, and Asia/Pacific). Reveals dependence on U.S. mall traffic, pockets of international growth, and exposure to currency moves or regional retail trends that can drive or drag ANF’s top line.
Shows how much sales come from each region (for example, North America, Europe, and Asia/Pacific). Reveals dependence on U.S. mall traffic, pockets of international growth, and exposure to currency moves or regional retail trends that can drive or drag ANF’s top line.
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The Fly
The FlyAbercrombie Fitch (ANF) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.11B
Dividend YieldN/A
Average Volume (3M)1.53M
Price to Earnings (P/E)8.7
Beta (1Y)1.37
Revenue Growth5.13%
EPS Growth0.95%
CountryUS
Employees6,800
SectorConsumer Cyclical
Sector Strength84
IndustryApparel - Retail
Share Statistics
EPS (TTM)10.64
Shares Outstanding44,431,710
10 Day Avg. Volume1,469,842
30 Day Avg. Volume1,533,252
Financial Highlights & Ratios
PEG Ratio-2.36
Price to Book (P/B)3.29
Price to Sales (P/S)0.88
P/FCF Ratio12.21
Enterprise Value/Market Cap1.09
Enterprise Value/Revenue0.84
Enterprise Value/Gross Profit1.39
Enterprise Value/Ebitda5.14
Forecast
1Y Price Target
$109.09Price Target Upside15.61% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering12
EPS Forecast (FY)10.69
Revenue Forecast (FY)$5.46B
Abercrombie Fitch Business Overview & Revenue Model
Company Description
Abercrombie & Fitch Co., through its subsidiaries, operates as an omnichannel retailer in the Americas, Europe, the Middle East, Africa, and the Asia-Pacific. It offers an assortment of apparel, personal care products, and accessories for men, wom...
How the Company Makes Money
ANF makes money primarily by designing, sourcing, marketing, and retailing branded apparel and accessories at a markup over product costs. Its main revenue stream is net sales from selling merchandise through (1) direct-to-consumer channels—princi...
Abercrombie Fitch Earnings Call Summary
Earnings Call Date:May 27, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 20, 2026
Earnings Call Sentiment Positive
The call conveyed a net-positive message: the company delivered record Q1 net sales, beat expectations on operating margin and EPS, completed a key ERP modernization and continued to return capital to shareholders while maintaining full-year guidance. Material near-term headwinds were acknowledged — notably EMEA weakness tied to the Middle East conflict, ERP-related order limits that trimmed growth, tariff/freight uncertainty, and some year-over-year profit pressure — but management described clear mitigation actions (inventory controls, targeted promos, disciplined investments) and reiterated confidence in achieving full-year targets.Positive Updates
Record Q1 Net Sales and Multi-Quarter Growth
Record first quarter net sales of $1.1 billion, up 2% year-over-year, marking the 14th consecutive quarter of net sales growth and a company record for Q1.
Negative Updates
EMEA Weakness and Middle East Impact
EMEA net sales declined 10% (comps -11%), with the regional conflict in the Middle East identified as a primary driver; the Middle East ramp-up reduced total company net sales growth by more than 50 basis points in Q1 and disproportionately impacted the Hollister business.
Read all updates
Q1-2026 Updates
Positive
Negative
Record Q1 Net Sales and Multi-Quarter Growth
Record first quarter net sales of $1.1 billion, up 2% year-over-year, marking the 14th consecutive quarter of net sales growth and a company record for Q1.
Read all positive updates
Company Guidance
Abercrombie & Fitch reiterated its 2026 guidance calling for full-year net sales growth of 3%–5% (vs. $5.27B in 2025) with operating margin of 12%–12.5% and diluted EPS of $10.20–$11, while targeting ~$450M in share repurchases for the year; specific assumptions include ~44M diluted shares, ~30% full-year tax rate, ~$225M CAPEX, ~130 new experiences (50 new stores / ~80 remodels & rightsizes, ~net +30 stores), and modest AUR improvement with ~40bps FX tailwind. For Q2 they expect net sales up 2%–4% to a comparable Q2 2025 base of ~$1.2B, operating margin around 10% (including ~$20M / ~120bps of unfavorable tariff impact), a Q2 tax rate of ~32%, diluted shares of ~45M and EPS of $1.80–$2 (including at least $150M of buybacks). Quarter-to-date context: Q1 record net sales of $1.1B (+2%, comps -1%), operating margin 8% (operating income $89M), adjusted EBITDA $131M (12% margin), EPS $1.47, regionals Q1 net sales: Americas +3% (comps +1%), APAC +24% (comps +15%), EMEA -10% (comps -11%); inventory at cost down 2% (units up low-single-digits), cash ~$594M and liquidity ~ $1B, $105M repurchased in Q1 (3% of shares) with $745M remaining authorization. Tariff outlook assumes 10% effective in Q2 and 15% on U.S. imports in H2 (driving ~20bps FY gross margin pressure vs. prior outlook); company has applied for ~ $100M of IEEPA refunds but assumed no benefit in guidance.Abercrombie Fitch Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
74
Positive
Cash Flow
77
Positive
| Breakdown | TTM | Jan 2026 | Jan 2025 | Jan 2024 | Jan 2023 | Jan 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 5.28B | 5.27B | 4.95B | 4.28B | 3.70B | 3.71B |
| Gross Profit | 3.21B | 3.24B | 3.17B | 2.69B | 2.10B | 2.31B |
| EBITDA | 867.45M | 878.17M | 934.53M | 655.75M | 229.50M | 490.97M |
| Net Income | 493.64M | 506.92M | 566.22M | 328.12M | 2.82M | 263.01M |
Balance Sheet | ||||||
| Total Assets | 3.45B | 3.54B | 3.30B | 2.97B | 2.71B | 2.94B |
| Cash, Cash Equivalents and Short-Term Investments | 619.22M | 784.58M | 888.95M | 900.88M | 517.60M | 823.14M |
| Total Debt | 1.29B | 1.17B | 951.61M | 1.05B | 1.22B | 1.22B |
| Total Liabilities | 2.10B | 2.12B | 1.95B | 1.92B | 2.01B | 2.10B |
| Stockholders Equity | 1.34B | 1.40B | 1.34B | 1.04B | 694.84M | 826.09M |
Cash Flow | ||||||
| Free Cash Flow | 416.05M | 378.37M | 527.47M | 495.63M | -166.91M | 180.80M |
| Operating Cash Flow | 667.40M | 619.14M | 710.38M | 653.42M | -2.34M | 277.78M |
| Investing Cash Flow | -181.35M | -150.77M | -297.70M | -157.18M | -140.68M | -96.98M |
| Financing Cash Flow | -408.50M | -495.39M | -534.88M | -111.20M | -155.33M | -446.90M |
Abercrombie Fitch Technical Analysis
Positive
94.36
Price Trends
82.08
Positive
87.19
Positive
89.66
Positive
Market Momentum
2.79
Negative
62.21
Neutral
85.71
Negative
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 94.36 is above the 20-day moving average (MA) of 86.95, above the 50-day MA of 82.08, and above the 200-day MA of 89.66, indicating a bullish trend. The MACD of 2.79 indicates Negative momentum. The RSI at 62.21 is Neutral, neither overbought nor oversold. The STOCH value of 85.71 is Negative, 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 1 risk factors in its most recent earnings report. Abercrombie Fitch reported the most risks in the "Legal & Regulatory" 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $6.06B | 13.37 | 17.64% | ― | 11.23% | 8.96% | |
72 Outperform | $4.11B | 8.69 | 36.89% | ― | 5.13% | 0.95% | |
68 Neutral | $2.17B | 9.59 | 47.36% | 6.82% | 7.10% | 12.26% | |
62 Neutral | $2.76B | 9.97 | 17.24% | 2.09% | 6.22% | 65.05% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% |
* Consumer Cyclical Sector Average
ANF
Abercrombie Fitch
92.42
3.64
4.10%
AEO
American Eagle
16.46
6.86
71.51%
BKE
Buckle
42.19
-1.03
-2.38%
URBN
Urban Outfitters
70.72
0.08
0.11%
Abercrombie Fitch Corporate Events
Executive/Board ChangesShareholder Meetings
Abercrombie & Fitch Shareholders Back Board, Pay and Auditor
Positive
Jun 4, 2026
At its June 3, 2026 annual meeting, held via remote communication, Abercrombie Fitch Co. shareholders elected nine directors, including CEO Fran Horowitz, to one-year terms ending at the 2027 annual meeting, confirming the existing board lineup. ...
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.