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Abercrombie & Fitch Company (ANF)
:ANF

Abercrombie Fitch (ANF) AI Stock Analysis

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Abercrombie Fitch

(NYSE:ANF)

Rating:67Neutral
Price Target:
$86.00
▲(8.85%Upside)
Abercrombie Fitch's overall stock score reflects solid financial performance and attractive valuation, tempered by mixed technical indicators and challenges highlighted in the earnings call. The company's strong revenue growth and Hollister's performance are positive, but risks such as margin pressures and tariff impacts need careful management.
Positive Factors
Brand Performance
Hollister continues to be strong, A&F is expected to inflect, and FY top-line guide was raised.
Market Strategy
Sales momentum is expected to continue due to multi-year efforts in marketing, product, and in-store presentation.
Negative Factors
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.
Promotional Activity
Decelerating A&F banner comps and higher promotional/discounting activity fuel investor fears of sales/profitability reversion risk.

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

Abercrombie Fitch Business Overview & Revenue Model

Company DescriptionAbercrombie & Fitch Co. (ANF) is a leading global specialty retailer known for its casual luxury clothing and accessories. The company operates under several brands, including Abercrombie & Fitch, Abercrombie Kids, and Hollister Co., catering primarily to young adults and teenagers. With a strong emphasis on quality and style, ANF offers a wide range of products, including apparel, personal care items, and accessories, through its retail stores and online platforms worldwide.
How the Company Makes MoneyAbercrombie & 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 Key Performance Indicators (KPIs)

Any
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:May 28, 2025
(Q1-2025)
|
% Change Since: 2.41%|
Next Earnings Date:Aug 21, 2025
Earnings Call Sentiment Neutral
The call presented a mixed picture. Significant achievements included record-breaking net sales and Hollister's strong performance. However, challenges were noted with Abercrombie's sales decline, gross margin pressures, and expected tariff impacts.
Q1-2025 Updates
Positive Updates
Record Net Sales and Growth
Achieved record net sales of $1.1 billion, marking an 8% growth compared to the previous year, surpassing the expected range of 4% to 6%.
Hollister Brand Success
Hollister led the way with a 22% net sales growth, continuing its eighth consecutive quarter of growth, with strong performance in fleece, jeans, and skirts.
Global Sales Growth
All regions experienced net sales growth: Americas up 7%, EMEA up 12%, and APAC up 5%.
Shareholder Returns
Returned $200 million to shareholders through share repurchases, equating to 5% of shares outstanding.
Negative Updates
Abercrombie Brand Decline
Abercrombie brands experienced a 4% net sales decline and a 10% decline in comparable sales, primarily due to lower Average Unit Retail (AUR) as a result of winter carryover inventory.
Gross Margin Decline
Operating margin decreased to 9.3% from 12.7% last year, impacted by lower gross margin and carryover inventory issues.
Impact of Tariffs
Projected tariffs to impact full-year operating margin by 100 basis points, with $50 million cost impact assumed for 2025.
Company Guidance
During the Abercrombie & Fitch Co. first-quarter earnings call for fiscal year 2025, the company reported net sales of $1.1 billion, an 8% increase from the previous year, surpassing their expected growth range of 4% to 6%. Earnings per share for the quarter were reported at $1.59, exceeding the anticipated figures. The company highlighted strong performance in the Hollister brand, which experienced a 22% growth in net sales and a 23% increase in comparable sales. However, Abercrombie brands saw a 4% decline in net sales and a 10% decrease in comparable sales, primarily due to lower average unit retail (AUR) from winter inventory carryover. Abercrombie & Fitch Co. also noted robust sales growth across all regions, with the Americas growing by 7%, EMEA by 12%, and APAC by 5%. The company utilized a strong balance sheet to return $200 million to shareholders through share repurchases. Looking forward, they project a 3% to 6% increase in full-year net sales, with a focus on mitigating tariff impacts and maintaining a 12.5% to 13.5% operating margin.

Abercrombie Fitch Financial Statement Overview

Summary
Abercrombie Fitch demonstrates solid revenue growth and improved operational efficiency in recent years but faces challenges with fluctuating margins and cash flow stability. The balance sheet shows improved leverage, though low equity levels in 2025 could pose risks. Overall, the company is on a positive trajectory but must manage potential volatility in its financial performance.
Income Statement
65
Positive
Abercrombie Fitch has shown a consistent revenue growth, particularly from 2023 to 2024, with a significant increase in net income. The gross profit margin has been strong, peaking at 62.92% in 2024. EBIT and EBITDA margins improved in 2024, indicating better operational efficiency. However, there were fluctuations in net profit margins, and there was a notable loss in 2021, which impacts overall stability.
Balance Sheet
60
Neutral
The company's debt-to-equity ratio has improved, decreasing from 1.65 in 2020 to 1.01 in 2024, indicating reduced leverage. Return on equity was highest in 2022 at 31.83%, but fell in 2023. The equity ratio has been fairly stable, but low equity in 2025 poses potential risks. Overall, the balance sheet shows mixed signals with improved leverage but lower equity levels.
Cash Flow
55
Neutral
Free cash flow turned positive in 2024 after being negative in 2023, with a significant growth rate of 396.86%. The operating cash flow to net income ratio was robust in 2024, suggesting effective cash generation relative to reported profits. However, negative cash flow metrics in 2023 highlight potential cash management concerns.
Breakdown
TTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income StatementTotal Revenue
5.03B4.95B4.28B3.70B3.71B3.13B
Gross Profit
2.50B3.17B2.69B2.10B2.31B1.89B
EBIT
614.75M740.82M484.67M92.65M343.08M-20.47M
EBITDA
759.97M934.53M659.71M240.55M494.99M151.00M
Net Income Common Stockholders
532.79M566.22M328.12M2.82M263.01M-114.02M
Balance SheetCash, Cash Equivalents and Short-Term Investments
607.57M888.95M900.88M517.60M823.14M1.10B
Total Assets
3.10B3.30B2.97B2.71B2.94B3.31B
Total Debt
1.03B951.61M1.05B1.22B1.22B1.55B
Net Debt
515.34M178.89M147.48M706.59M400.52M445.48M
Total Liabilities
894.71M1.95B1.92B2.01B2.10B2.37B
Stockholders Equity
1.19B1.34B1.04B694.84M826.09M936.63M
Cash FlowFree Cash Flow
416.58M527.47M495.63M-166.91M177.02M303.01M
Operating Cash Flow
611.37M710.38M653.42M-2.34M274.00M404.92M
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-446.90M69.72M

Abercrombie Fitch Technical Analysis

Technical Analysis Sentiment
Negative
Last Price79.01
Price Trends
50DMA
75.29
Positive
100DMA
87.66
Negative
200DMA
116.28
Negative
Market Momentum
MACD
1.29
Negative
RSI
51.20
Neutral
STOCH
35.54
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 79.01 is above the 20-day moving average (MA) of 78.97, above the 50-day MA of 75.29, and below the 200-day MA of 116.28, indicating a neutral trend. The MACD of 1.29 indicates Negative momentum. The RSI at 51.20 is Neutral, neither overbought nor oversold. The STOCH value of 35.54 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 (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
81
Outperform
$6.21B14.5119.55%8.38%52.18%
BKBKE
75
Outperform
$2.24B11.2444.55%3.20%-1.08%-8.20%
GAGAP
72
Outperform
$8.29B9.6829.16%2.97%1.07%28.03%
68
Neutral
$4.96B27.6317.44%14.64%21.68%
ANANF
67
Neutral
$3.86B7.7846.98%12.54%25.47%
AEAEO
64
Neutral
$1.80B10.6312.19%4.81%-0.95%-10.51%
63
Neutral
$6.98B11.412.80%4.24%2.68%-24.94%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ANF
Abercrombie Fitch
79.01
-113.33
-58.92%
AEO
American Eagle
10.11
-10.16
-50.12%
BKE
Buckle
43.66
10.16
30.33%
GAP
Gap Inc
22.35
-3.33
-12.97%
BOOT
Boot Barn
162.27
31.60
24.18%
URBN
Urban Outfitters
69.23
25.55
58.49%

Abercrombie Fitch Corporate Events

Business Operations and StrategyFinancial Disclosures
Abercrombie & Fitch Raises Sales Outlook for 2024
Positive
Jan 13, 2025

Abercrombie & Fitch Co. has increased its net sales outlook for the fourth quarter and full fiscal year 2024 following better-than-expected holiday sales. The company anticipates a net sales growth of 7-8% for the fourth quarter and around 15% for the full year, while maintaining a strong operating margin. This improvement reflects the company’s effective brand strategies and operational execution, positioning it for sustainable, profitable growth and exceeding its ‘Always Forward Plan 2025’ targets.

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.