Abercrombie Fitch (ANF) AI Stock Analysis

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Abercrombie Fitch

(NYSE:ANF)

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Outperform 77 (OpenAI - 4o)

Rating:77Outperform

Price Target:

$99.00

▲(16.79% Upside)

Abercrombie Fitch demonstrates strong financial performance and is undervalued, with a low P/E ratio suggesting potential upside. The earnings call reflects robust growth, particularly for Hollister, but regional challenges and tariff impacts pose risks. Technical indicators show bearish momentum, but potential for a rebound exists.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective sales strategies, supporting long-term business expansion.

Brand Success

Hollister's strong performance reflects successful brand positioning and consumer appeal, enhancing overall company growth prospects.

Partnerships

The NFL partnership expands brand visibility and aligns with strategic marketing, potentially driving new customer engagement and sales.

Negative Factors

Regional Performance Challenges

Weak performance in EMEA highlights regional market challenges that could hinder overall revenue growth if not addressed.

Abercrombie Brand Sales Decline

Declining sales for the Abercrombie brand suggest issues with product appeal or pricing strategy, potentially impacting brand strength.

Tariff Impact

Significant tariff costs could pressure margins and profitability, necessitating strategic adjustments to mitigate financial impact.

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

Market Cap

$4.04B

Dividend YieldN/A

Average Volume (3M)2.09M

Price to Earnings (P/E)8.1

Beta (1Y)1.37

Revenue Growth9.34%

EPS Growth10.61%

CountryUS

Employees6,600

SectorConsumer Cyclical

Sector Strength84

IndustryApparel - Retail

Share Statistics

EPS (TTM)2.32

Shares Outstanding47,069,817

10 Day Avg. Volume1,843,077

30 Day Avg. Volume2,090,821

Financial Highlights & Ratios

PEG Ratio0.15

Price to Book (P/B)4.54

Price to Sales (P/S)1.23

P/FCF Ratio11.51

Enterprise Value/Market Cap1.22

Enterprise Value/Revenue0.97

Enterprise Value/Gross Profit1.56

Enterprise Value/Ebitda5.33

Forecast

1Y Price Target

$113.38

Price Target Upside33.75% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering9

Abercrombie Fitch Business Overview & Revenue Model

Company DescriptionAbercrombie & 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 MoneyAbercrombie & Fitch generates revenue primarily through the direct sale of its products via physical retail stores and e-commerce platforms. The company's main revenue streams include the sale of clothing, accessories, and personal care items, with a significant portion of sales coming from its flagship stores and online channels. Additionally, the company benefits from seasonal promotions, limited-edition product releases, and loyalty programs that encourage repeat purchases. Abercrombie has also formed partnerships with various third-party retailers and e-commerce platforms to expand its reach, contributing to its overall earnings. The company continuously adapts its product offerings based on market trends and consumer preferences, which helps maintain its competitive edge and drive revenue growth.

Abercrombie Fitch Key Performance Indicators (KPIs)

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:Aug 27, 2025

(Q2-2025)

% Change Since: |

Next Earnings Date:Nov 25, 2025

Earnings Call Sentiment Neutral

The earnings call highlighted strong overall company performance with record-breaking revenue growth and successful brand strategies, particularly for Hollister. However, challenges remain with regional performance in EMEA and Abercrombie brand's sales decline. The impact of tariffs is also a concern moving forward.

Q2-2025 Updates

Positive Updates

Record-Breaking Revenue and Growth

Second quarter net sales reached a record $1.2 billion, growing 7% over last year and exceeding top and bottom line expectations. The company delivered its 11th consecutive quarter of growth.

Strong Performance in the Americas and APAC

The Americas achieved its 12th consecutive quarter of growth with net sales up 8%. APAC continued to perform well, growing 12%.

Hollister Brand Success

Hollister brands delivered record first half sales with net sales growing 19% in the second quarter on strong cross-channel traffic and comparable sales.

Share Repurchase Program

Abercrombie & Fitch repurchased $50 million of stock this quarter, totaling $250 million in repurchases so far this year.

Partnership with NFL

Abercrombie & Fitch announced a partnership with the NFL, becoming an Official NFL Fashion Partner, a first for a league sponsor.

Negative Updates

Decline in EMEA Performance

EMEA net sales were lower by 1% due to softness in Germany and other European markets, against 16% growth in the second quarter of 2024.

Abercrombie Brand Sales Decline

Abercrombie brands net sales were lower by 5% due to lower AUR as carryover inventory was cleared, with comparable sales down 11%.

Impact of Tariffs

Tariffs have an estimated cost impact of around $90 million for 2025, impacting full year operating margin outlook by 170 basis points.

Company Guidance

During the Abercrombie & Fitch Second Quarter Fiscal Year 2025 Earnings Conference Call, the company reported record net sales of $1.2 billion, marking a 7% increase over the previous year. The Americas region achieved its 12th consecutive quarter of growth with an 8% rise in net sales, while APAC also performed well with a 12% increase. However, EMEA experienced a 1% decline due to softness in Germany. Hollister brands saw a significant growth of 19% in net sales and comparable sales, whereas Abercrombie brands experienced a 5% decline in net sales with an 11% drop in comparable sales, primarily due to lower average unit retail (AUR) as they managed carryover inventory. The company repurchased $50 million of stock in the second quarter, totaling $250 million for the year, and announced plans for 100 new store experiences, including 60 new stores and 40 remodels or right-sizes. Revised full-year expectations include a net sales growth of 5% to 7% and an operating margin of 13% to 13.5%, factoring in a $90 million estimated impact from tariffs.

Abercrombie Fitch Financial Statement Overview

Summary

Abercrombie Fitch shows strong financial performance with robust revenue growth and profitability. The balance sheet is stable with moderate leverage and high return on equity. However, the decline in free cash flow growth is a concern that needs addressing to ensure sustainable financial health.

Income Statement

Very Positive

Abercrombie Fitch has demonstrated strong revenue growth and improving profitability. The TTM data shows a gross profit margin of 61.98% and a net profit margin of 10.61%, indicating efficient cost management and profitability. The EBIT and EBITDA margins are also healthy at 15.14% and 18.13%, respectively. The revenue growth rate of 1.48% in the TTM period suggests a positive trend, although slightly lower than previous periods.

Balance Sheet

Positive

The company's balance sheet shows a stable financial position with a debt-to-equity ratio of 0.85, indicating moderate leverage. The return on equity (ROE) is strong at 42.73%, reflecting efficient use of equity to generate profits. The equity ratio stands at 39.14%, suggesting a balanced capital structure with a good proportion of equity financing.

Cash Flow

Positive

Cash flow analysis reveals some challenges, with a decline in free cash flow growth by 17.20% in the TTM period. However, the operating cash flow to net income ratio is 0.54, and the free cash flow to net income ratio is 0.61, indicating reasonable cash generation relative to net income. The company needs to focus on improving free cash flow generation to support future growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.10B	4.95B	4.28B	3.70B	3.71B	3.13B
Gross Profit	3.16B	3.17B	2.69B	2.10B	2.31B	1.89B
EBITDA	924.80M	934.53M	659.71M	240.55M	494.99M	151.00M
Net Income	541.00M	566.22M	328.12M	2.82M	263.01M	-114.02M
Balance Sheet
Total Assets	3.30B	3.30B	2.97B	2.71B	2.94B	3.31B
Cash, Cash Equivalents and Short-Term Investments	603.52M	888.95M	900.88M	517.60M	823.14M	1.10B
Total Debt	1.10B	951.61M	1.05B	1.22B	1.22B	1.55B
Total Liabilities	1.99B	1.95B	1.92B	2.01B	2.10B	2.37B
Stockholders Equity	1.29B	1.34B	1.04B	694.84M	826.09M	936.63M
Cash Flow
Free Cash Flow	344.95M	527.47M	495.63M	-166.91M	180.80M	303.01M
Operating Cash Flow	563.15M	710.38M	653.42M	-2.34M	277.78M	404.92M
Investing Cash Flow	-233.00M	-297.70M	-157.18M	-140.68M	-96.98M	-51.91M
Financing Cash Flow	-498.63M	-534.88M	-111.20M	-155.33M	-446.90M	69.72M

Abercrombie Fitch Technical Analysis

Technical Analysis Sentiment

Negative

Last Price84.77

Price Trends

50DMA

94.35

Negative

100DMA

87.79

Negative

200DMA

96.37

Negative

Market Momentum

MACD

-2.22

Positive

RSI

37.73

Neutral

STOCH

23.62

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ANF, the sentiment is Negative. The current price of 84.77 is below the 20-day moving average (MA) of 90.25, below the 50-day MA of 94.35, and below the 200-day MA of 96.37, indicating a bearish trend. The MACD of -2.22 indicates Positive momentum. The RSI at 37.73 is Neutral, neither overbought nor oversold. The STOCH value of 23.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 (61)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BKE	81 Outperform	$3.06B	14.98	46.12%	6.52%	1.62%	-2.57%
URBN	79 Outperform	$6.55B	14.29	18.42%	―	9.63%	56.06%
ANF	77 Outperform	$4.04B	8.13	43.30%	―	9.34%	10.61%
BOOT	76 Outperform	$5.17B	26.69	16.68%	―	16.70%	27.76%
GAP	68 Neutral	$8.16B	9.45	25.90%	2.86%	-0.05%	15.17%
AEO	66 Neutral	$3.04B	17.28	12.76%	2.79%	-2.73%	-16.71%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

* Consumer Cyclical Sector Average

Performance Comparison

ANF

Abercrombie Fitch

84.77

-55.13

-39.41%

AEO

American Eagle

17.24

-4.32

-20.04%

BKE

Buckle

59.04

18.55

45.81%

GAP

Gap Inc

21.34

-0.05

-0.23%

BOOT

Boot Barn

165.88

-1.40

-0.84%

URBN

Urban Outfitters

72.25

33.94

88.59%

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: Sep 13, 2025