Abercrombie Fitch (ANF)
NYSE:ANF
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Abercrombie Fitch
(NYSE:ANF)
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Rating:69Neutral
Price Target:
$104.00
▲(10.22% Upside)
Action:DowngradedDate:03/06/26
The score is driven primarily by solid financial performance (strong revenue and profitability versus history, improved leverage) and supportive valuation (low P/E). These positives are tempered by weak technicals (price below key moving averages with negative MACD) and a more cautious near-term setup from the earnings call, including tariff and ERP-related margin pressure and uneven brand performance.
Positive Factors
Revenue acceleration & solid margins
Sustained revenue acceleration and retail-level gross margins reflect stronger demand, improved pricing/mix and better product economics. Over 2–6 months this supports scale benefits, high ROE and the ability to fund reinvestment even if margins face moderation, underpinning durable earnings power.
Negative Factors
Material tariff headwinds
Persistent tariffs are a structural cost pressure that directly compresses margins and narrows pricing flexibility. For a sourcing‑dependent apparel model this reduces gross margin durability, forces tradeoffs between price and volume, and can erode long‑term profitability if unresolved.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue acceleration & solid margins
Sustained revenue acceleration and retail-level gross margins reflect stronger demand, improved pricing/mix and better product economics. Over 2–6 months this supports scale benefits, high ROE and the ability to fund reinvestment even if margins face moderation, underpinning durable earnings power.
Read all positive factors
Abercrombie Fitch (ANF) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.83B
Dividend YieldN/A
Average Volume (3M)1.18M
Price to Earnings (P/E)9.1
Beta (1Y)1.43
Revenue Growth6.42%
EPS Growth-3.25%
CountryUS
Employees6,600
SectorConsumer Cyclical
Sector Strength84
IndustryApparel - Retail
Share Statistics
EPS (TTM)3.68
Shares Outstanding44,924,473
10 Day Avg. Volume1,099,945
30 Day Avg. Volume1,176,582
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/Revenue0.79
Enterprise Value/Gross Profit1.36
Enterprise Value/Ebitda4.79
Forecast
1Y Price Target
$121.71Price Target Upside28.99% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering8
EPS Forecast (FY)10.75
Revenue Forecast (FY)$5.48B
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 c...
How the Company Makes Money
ANF primarily makes money by designing, sourcing, marketing, and selling branded apparel and accessories at a markup over product cost. The company’s main revenue stream is net sales from direct-to-consumer channels, which include (1) physical ret...
Abercrombie Fitch Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breaks down revenue across different regions, revealing where Abercrombie Fitch is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Breaks down revenue across different regions, revealing where Abercrombie Fitch is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Data provided by:
The Fly
The FlyAbercrombie Fitch Earnings Call Summary
Earnings Call Date:Mar 04, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Jun 03, 2026
Earnings Call Sentiment Positive
The call highlighted multiple clear achievements: record full-year and Q4 sales, strong Hollister momentum, meaningful digital penetration (44% of sales) and robust cash generation and buybacks. However, material near-term headwinds were emphasized — most notably tariffs, an ERP-related short-term operational disruption, a decline in Abercrombie’s full-year comps, and an APAC strategic review. Management presented a constructive plan to mitigate tariff impact, modest AUR increases, continued store and digital investments, and a commitment to shareholder returns, but acknowledged tangible margin and execution risks in the near term.Positive Updates
Record Annual and Quarterly Net Sales
Fiscal 2025 net sales reached a record ~$5.27 billion (management: $5.3B), up ~6% year-over-year; fourth quarter net sales were $1.67 billion, up 5% versus prior year.
Negative Updates
Material Tariff Headwinds
Tariffs were a significant drag: Q4 included ~360 basis points of tariff pressure to operating margin; fiscal 2025 incurred approximately $90 million of tariff expense contributing to a year-over-year margin decline; 2026 outlook assumes continued 15% tariffs with an incremental ~$40 million (≈70 bps) headwind for the year and ~290 bps impact in Q1.
Read all updates
Q4-2025 Updates
Positive
Negative
Record Annual and Quarterly Net Sales
Fiscal 2025 net sales reached a record ~$5.27 billion (management: $5.3B), up ~6% year-over-year; fourth quarter net sales were $1.67 billion, up 5% versus prior year.
Read all positive updates
Company Guidance
The company guided 2026 full-year net sales growth of 3%–5% (vs $5.27B in FY2025) with operating margin of 12.0%–12.5% and EPS of $10.20–$11.00 (diluted shares ~45M), a tax rate around 29%, capex of $200M–$225M and targeted share repurchases of ~ $450M; they assume ~40 bps of FX benefit, modest AUR improvement, and expect incremental tariff headwinds of ~70 bps (~$40M) for the year (assuming 15% global tariffs effective Feb 24), while Q1 guidance is net sales growth of 1%–3% (vs Q1 ’25 $1.1B), operating margin ~7%, EPS $1.20–$1.30 (diluted shares ~46M) and at least $100M of buybacks — with a temporary ERP go‑live that will limit receipts (≈1–2 pts of growth headwind for Q1 and over 100 bps of margin pressure), a Q1 tariff hit of ~290 bps (≈$30M net of mitigation) partially offset by a ~160 bps freight tailwind, and planned retail activity of ~125 new store experiences (≈55 new stores, 70 rightsizes/remodels) with ~25 closures.Abercrombie Fitch Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
74
Positive
Cash Flow
67
Positive
| Breakdown | Jan 2026 | Jan 2025 | Jan 2024 | Jan 2023 | Jan 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 5.27B | 4.95B | 4.28B | 3.70B | 3.71B |
| Gross Profit | 3.08B | 3.02B | 2.55B | 1.96B | 2.17B |
| EBITDA | 857.33M | 934.81M | 659.71M | 230.85M | 487.10M |
| Net Income | 506.92M | 566.22M | 328.12M | 2.82M | 263.01M |
Balance Sheet | |||||
| Total Assets | 3.54B | 3.30B | 2.97B | 2.71B | 2.94B |
| Cash, Cash Equivalents and Short-Term Investments | 784.58M | 888.95M | 900.88M | 517.60M | 823.14M |
| Total Debt | 1.17B | 951.61M | 1.05B | 1.22B | 1.22B |
| Total Liabilities | 2.12B | 1.95B | 1.92B | 2.01B | 2.10B |
| Stockholders Equity | 1.40B | 1.34B | 1.04B | 694.84M | 826.09M |
Cash Flow | |||||
| Free Cash Flow | 378.37M | 527.47M | 495.63M | -166.91M | 180.80M |
| Operating Cash Flow | 619.14M | 710.38M | 653.42M | -2.34M | 277.78M |
| Investing Cash Flow | -150.77M | -297.70M | -157.18M | -140.68M | -96.98M |
| Financing Cash Flow | -495.39M | -534.88M | -111.20M | -155.33M | -446.90M |
Abercrombie Fitch Technical Analysis
Positive
94.36
Price Trends
92.38
Positive
99.93
Negative
92.79
Positive
Market Momentum
0.77
Positive
51.88
Neutral
15.98
Positive
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 92.97, above the 50-day MA of 92.38, and above the 200-day MA of 92.79, indicating a bullish trend. The MACD of 0.77 indicates Positive momentum. The RSI at 51.88 is Neutral, neither overbought nor oversold. The STOCH value of 15.98 is Positive, 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 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $2.86B | 11.34 | 45.18% | 6.82% | 6.58% | 6.57% | |
69 Neutral | $3.83B | 9.11 | 38.98% | ― | 6.42% | -3.25% | |
68 Neutral | $6.02B | 13.74 | 17.66% | ― | 11.07% | 18.69% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
54 Neutral | $2.90B | 11.22 | 12.12% | 2.09% | 3.16% | -32.51% | |
54 Neutral | $4.17B | 28.27 | 22.70% | ― | 5.22% | -4.06% |
* Consumer Cyclical Sector Average
ANF
Abercrombie Fitch
84.54
15.10
21.75%
AEO
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16.94
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57.43%
BKE
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55.27
22.45
68.42%
URBN
Urban Outfitters
69.01
15.31
28.51%
VSCO
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52.36
33.10
171.86%
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.