Abercrombie Fitch (ANF) AI Stock Analysis

• Market Cap: $4.49B
• Dividend Yield: N/A
• Average Volume (3M): 2.15M
• Price to Earnings (P/E): 9.0
• Beta (1Y): 1.39
• Revenue Growth: 9.34%
• EPS Growth: 10.61%
• Country: US
• Employees: 6,600
• Sector: Consumer Cyclical
• Sector Strength: 81
• Industry: Apparel - Retail
• EPS (TTM): 2.32
• Shares Outstanding: 47,069,817
• 10 Day Avg. Volume: 2,499,383
• 30 Day Avg. Volume: 2,148,029
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.10
• Enterprise Value/Revenue: 0.97
• Enterprise Value/Gross Profit: 1.56
• Enterprise Value/Ebitda: 5.33
• 1Y Price Target: $112.43
• Price Target Upside: 17.86% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8

• Rating: 78 Outperform
• Price Target: $109.00 ▲(14.27% Upside)

Abercrombie Fitch's strong financial performance and strategic initiatives, such as the NFL partnership, drive a positive outlook. The stock's undervaluation and robust earnings call further support its potential. However, challenges in cash flow and regional performance in EMEA, along with tariff impacts, are risks to monitor.

Positive Factors

Customer Expansion

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

Inventory Management

Heading into 2H, inventory levels are more in-line with sales, and 3Q trends are off to a strong start, suggesting potential for better average unit retail prices.

Revenue and Growth

Hollister showed strong performance with a 19% growth, exceeding expectations.

Negative Factors

Comparative Sales

Abercrombie & Fitch comparative sales were weaker than planned, driven by pressure to clear excess inventory.

Operating Margin

Management’s 3Q operating margin outlook contemplates gross margin degradation of ~150-200bps Y/Y driven primarily by a ~200bps net tariff headwind.

Tariff Impact

Adj. EPS guidance was cut due to higher tariff assumptions resulting in margin pressure.

Abercrombie Fitch Business Overview & Revenue Model

Company Description

Abercrombie & Fitch Co. (ANF) is a global retail company specializing in casual wear, with a focus on apparel, accessories, and personal care products for young adults. Founded in 1892, the company operates under multiple brands, including Abercrombie & Fitch, Abercrombie Kids, Hollister Co., and Gilly Hicks. The company is known for its distinctive marketing strategies and its emphasis on a lifestyle brand that promotes a sense of belonging among its target demographic.

How the Company Makes Money

Abercrombie & 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 Financial Statement Overview

Summary

Abercrombie Fitch exhibits strong financial health with consistent revenue growth, robust profitability, and stable cash flow generation. Despite a moderate increase in leverage, effective cost management and cash conversion bolster its financial position.

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	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	177.02M	303.01M
Operating Cash Flow	563.15M	710.38M	653.42M	-2.34M	274.00M	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: Positive
• Last Price: 95.39
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• 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 95.39 is below the 20-day moving average (MA) of 95.67, above the 50-day MA of 94.54, and below the 200-day MA of 100.60, indicating a neutral trend. The MACD of -0.13 indicates Positive momentum. The RSI at 50.11 is Neutral, neither overbought nor oversold. The STOCH value of 62.82 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
BKE	81 Outperform	$3.03B	14.85	43.13%	6.57%	1.62%	-2.57%
ANF	78 Outperform	$4.49B	9.00	43.30%	―	9.34%	10.61%
URBN	77 Outperform	$6.34B	14.28	19.72%	―	9.63%	56.06%
BOOT	76 Outperform	$5.58B	28.80	18.15%	―	16.70%	27.76%
GAP	75 Outperform	$8.83B	10.23	28.07%	2.61%	-0.05%	15.17%
AEO	75 Outperform	$3.26B	18.15	12.17%	2.78%	-2.73%	-16.71%
Sector *	61 Neutral	$18.02B	12.77	-0.75%	3.01%	1.30%	-13.03%

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.