Abercrombie Fitch (ANF) AI Stock Analysis

• Market Cap: $4.36B
• Dividend Yield: N/A
• Average Volume (3M): 3.11M
• Price to Earnings (P/E): 9.0
• Beta (1Y): 1.34
• Revenue Growth: 12.54%
• EPS Growth: 25.47%
• Country: US
• Employees: 6,600
• Sector: Consumer Cyclical
• Sector Strength: 61
• Industry: Apparel - Retail
• EPS (TTM): 1.59
• Shares Outstanding: 47,643,314
• 10 Day Avg. Volume: 2,168,537
• 30 Day Avg. Volume: 3,114,857
• PEG Ratio: -1.34
• Price to Book (P/B): 3.28
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 8.92
• Enterprise Value/Market Cap: 0.97
• Enterprise Value/Revenue: 0.22
• Enterprise Value/Gross Profit: 1.33
• Enterprise Value/Ebitda: 1.19
• 1Y Price Target: $117.00
• Price Target Upside: 27.73% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11

• Rating: 77 Outperform
• Price Target: $101.00 ▲(10.26%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

Brand Expansion

Abercrombie brand has successfully expanded its customer reach to an 18-40 year old demographic, supporting broad-based top-line results.

Financial Performance

Abercrombie beat top and bottom lines in the first quarter and was able to pass through better sales performance in raising the top end of the company’s full-year revenue guide.

Market Strategy

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

Negative Factors

Earnings Outlook

A worsening margin outlook is following, with the full-year operating margin guide now 12.5% to 13.5%, down from 14%-15%.

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.

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 a solid financial performance with strong revenue growth, robust profitability margins, and effective cost management. However, a slight increase in leverage and declining net profit margin due to rising operational costs temper this strength.

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	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	5.03B	4.95B	4.28B	3.70B	3.71B	3.13B
Gross Profit	3.18B	3.17B	2.69B	2.10B	2.31B	1.89B
EBITDA	903.74M	934.53M	659.71M	240.55M	494.99M	151.00M
Net Income	532.79M	566.22M	328.12M	2.82M	263.01M	-114.02M
Balance Sheet
Total Assets	3.10B	3.30B	2.97B	2.71B	2.94B	3.31B
Cash, Cash Equivalents and Short-Term Investments	607.57M	888.95M	900.88M	517.60M	823.14M	1.10B
Total Debt	1.03B	951.61M	1.05B	1.22B	1.22B	1.55B
Total Liabilities	894.71M	1.95B	1.92B	2.01B	2.10B	2.37B
Stockholders Equity	1.19B	1.34B	1.04B	694.84M	826.09M	936.63M
Cash Flow
Free Cash Flow	416.58M	527.47M	495.63M	-166.91M	177.02M	303.01M
Operating Cash Flow	611.37M	710.38M	653.42M	-2.34M	274.00M	404.92M
Investing Cash Flow	-289.58M	-297.70M	-157.18M	-140.68M	-96.98M	-51.91M
Financing Cash Flow	-676.44M	-534.88M	-111.20M	-155.33M	-446.90M	69.72M

Abercrombie Fitch Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 91.60
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Negative
• STOCH: 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 91.6 is above the 20-day moving average (MA) of 80.64, above the 50-day MA of 77.40, and below the 200-day MA of 111.55, indicating a neutral trend. The MACD of 2.76 indicates Negative momentum. The RSI at 70.78 is Negative, neither overbought nor oversold. The STOCH value of 90.98 is Negative, 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	79 Outperform	$6.59B	15.42	19.55%	―	8.38%	52.18%
ANF	77 Outperform	$4.36B	9.02	46.98%	―	12.54%	25.47%
BKE	75 Outperform	$2.44B	12.27	44.55%	2.94%	-1.08%	-8.20%
GAP	71 Outperform	$8.48B	9.90	29.16%	2.90%	1.07%	28.03%
BOOT	68 Neutral	$5.05B	28.12	17.44%	―	14.64%	21.68%
Sector *	62 Neutral	$16.90B	11.24	-7.48%	2.95%	1.60%	-23.76%
AEO	57 Neutral	$1.78B	10.52	12.19%	4.86%	-0.95%	-10.51%

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.