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Abercrombie & Fitch Company (ANF) Stock

Abercrombie & Fitch Company Stock Details, Movements and Public Alerts

Abercrombie & Fitch Co. (ANF): The Shocking Retail Turnaround Trading at 8x Earnings

When Fran Horowitz became CEO of Abercrombie & Fitch in 2017, the company was a retail punchline: stores reeked of cologne, shirtless models alienated customers, and the brand's exclusive sizing policies had sparked boycotts. Eight years later, Horowitz has orchestrated a stunning transformation: Abercrombie now offers sizes XXS to 3XL, Hollister dominates teen casual wear with Social Tourist collaborations featuring TikTok stars Charli and Dixie D'Amelio, and the flagship Abercrombie brand has become a Millennial and Gen Z favorite for elevated basics. Revenue has surged from $3.5 billion to $5+ billion, digital penetration exceeds 40%, and operating margins have quadrupled to 10%+. Yet the stock trades at a forward P/E of just 8.2—cheaper than distressed retailers despite best-in-class execution and sector-leading growth.

52-Week Range

$164.80 - $65.40

-54.85% from high · +13.76% from low

Avg Daily Volume

2,086,691

20-day average

100-day avg: 2,008,796

Fundamentals

Valuation Metrics

P/E Ratio (TTM)

6.93

Below market average

Forward P/E

7.68

Earnings expected to decline

PEG Ratio

-24.52

Potentially undervalued

Price to Book

3.12

EV/EBITDA

4.89

EPS (TTM)

$10.52

Price to Sales

0.67

Beta

1.44

Similar volatility to market

How is ANF valued relative to its earnings and growth?
Abercrombie & Fitch Company trades at a P/E ratio of 6.93, which is below the market average of approximately 20. This lower valuation could indicate the market has modest growth expectations, or it might represent an undervalued opportunity if the fundamentals are strong. Looking ahead, the forward P/E of 7.68 is higher than the current P/E, indicating analysts expect earnings to decline over the next year. The PEG ratio of -24.52 suggests the stock may be undervalued relative to its growth rate.
What is ANF's risk profile compared to the market?
With a beta of 1.44, Abercrombie & Fitch Company is roughly as volatile as the market, moving in line with broad market trends. This moderate beta suggests the stock offers market-level returns without excessive volatility. The price-to-book ratio of 3.12 shows investors value the company above its book value, which often reflects intangible assets or growth prospects.

Performance & Growth

Profit Margin

10.60%

Operating Margin

13.90%

EBITDA

$866.38M

Return on Equity

43.40%

Return on Assets

14.10%

Revenue Growth (YoY)

6.60%

Earnings Growth (YoY)

16.40%

How profitable and efficient is ANF's business model?
Abercrombie & Fitch Company achieves a profit margin of 10.60%, meaning it retains $10.60 from every $100 in revenue after all expenses. This represents a solid margin typical of well-run businesses, showing the company can effectively balance revenue generation with cost control. The operating margin of 13.90% reveals how efficiently the company runs its core business operations before interest and taxes. With ROE at 43.40% and ROA at 14.10%, the company generates strong returns on invested capital.
What are ANF's recent growth trends?
Abercrombie & Fitch Company's revenue grew by 6.60% year-over-year, showing steady progress in growing the business. This positive trajectory indicates the company maintains competitive positioning in its markets. Earnings increased by 16.40% year-over-year, outpacing revenue growth through improved margins. These growth metrics should be evaluated against APPAREL RETAIL industry averages for proper context.

Company Size & Market

Market Cap

$3.4B

Revenue (TTM)

$5.10B

Revenue/Share (TTM)

$103.03

Shares Outstanding

47.07M

Book Value/Share

$27.46

Asset Type

Common Stock

What is ANF's market capitalization and position?
Abercrombie & Fitch Company has a market capitalization of $3.4B, classifying it as a mid-cap stock ($2B-$10B). Mid-caps often represent companies in their growth phase, offering higher growth potential than large-caps but with more stability than small-caps. They can be attractive takeover targets and may become tomorrow's large-caps. With 47.07M shares outstanding, the company's ownership is relatively concentrated. As a participant in the APPAREL RETAIL industry, it competes with other firms in this sector.
How does ANF's price compare to its book value?
Abercrombie & Fitch Company's book value per share is $27.46, while the current stock price is $74.40, resulting in a price-to-book (P/B) ratio of 2.71. This reasonable premium to book value suggests the market values the company's earnings power and intangible assets appropriately. Most profitable companies trade between 1-3x book value. As a common stock, this represents equity ownership with voting rights.

Analyst Ratings

Analyst Target Price

$110.56

48.60% upside potential

Analyst Recommendations

Strong Buy

2

Buy

4

Hold

6

Sell

0

Strong Sell

0

How reliable are analyst predictions for ANF?
12 analysts cover ANF with 50% recommending buy/strong buy ratings. Analyst predictions have mixed reliability - studies show consensus rarely beats market returns consistently. The mixed views reflect uncertainty about the outlook. The consensus target of $110.56 implies 48.6% upside, but targets are often adjusted to follow price moves rather than predict them.
What is the Wall Street consensus on ANF?
Current analyst recommendations:2 Strong Buy, 4 Buy, 6 Hold, 00The neutral stance suggests uncertainty or fair valuation at current levels.Remember that analyst opinions often lag price movements and can be influenced by investment banking relationships.

Fundamentals last updated: Oct 15, 2025, 02:18 AM

Technical Indicators

RSI (14-day)

42.43

Neutral

50-Day Moving Average

$84.23

-11.67% below MA-50

200-Day Moving Average

$88.10

-15.55% below MA-200

MACD Line

-3.64

MACD Signal

-4.60

MACD Histogram

0.96

Bullish

What does ANF's RSI value tell investors?
The RSI (Relative Strength Index) for ANF is currently 42.43, indicating the stock is in neutral territory (40-60 range). Neither buyers nor sellers have clear control, suggesting consolidation or balanced market forces. Combined with the price being below the 50-day moving average, this confirms bearish conditions.
How should traders interpret ANF's MACD and moving average crossovers?
MACD analysis shows the MACD line at -3.64 above the signal line at -4.60, with histogram at 0.96. This bullish crossover suggests upward momentum is building. The 50-day MA ($84.23) is below the 200-day MA ($88.10), forming a death cross pattern that often warns of extended weakness. Price is currently below both MAs, confirming weakness.

Indicators last updated: Oct 30, 2025, 12:32 AM

Active Alerts

Alert Condition
Earnings Announcement
Threshold
1 days
Created
Jul 2, 2025, 09:34 PM
Alert Condition
RSI Threshold Cross
Threshold
70
Created
Jul 2, 2025, 09:34 PM
Alert Condition
Golden Cross
Threshold
N/A
Created
Jul 2, 2025, 09:28 PM

Abercrombie & Fitch Co. (ANF) Stock Analysis 2025: Complete Investment Guide

From Retail Pariah to Comeback King

Abercrombie & Fitch spent the 2010s as a cautionary tale: exclusionary marketing, lawsuit scandals, and a business model built on cologne-soaked stores staffed by shirtless models. When Fran Horowitz took the CEO role in 2017, she inherited a company losing money, closing stores, and facing irrelevance among its core teen demographic. Horowitz immediately pivoted: she ditched the cologne, introduced inclusive sizing (XXS to 3XL), modernized store aesthetics, and invested heavily in digital infrastructure. The tagline became 'fierce, not exclusive.'

By 2025, the transformation is undeniable. The flagship Abercrombie & Fitch brand targets 21-40 year-old Millennials and older Gen Z with elevated basics—think $60 jeans and $40 t-shirts that rival Lululemon quality. Hollister dominates the teen market with affordable California-inspired casual wear, while Social Tourist leverages TikTok influencers Charli and Dixie D'Amelio to capture Gen Z fashion trends. Digital sales account for 40%+ of revenue, up from 20% pre-Horowitz, with the mobile app driving personalized recommendations and loyalty engagement. Horowitz's disciplined execution—inventory turns improved 30%, store count down 25% but productivity up 50%—has delivered operating margins of 10%+, quadruple the 2017 level.

Business Model & Competitive Moat

Abercrombie operates a multi-brand portfolio targeting different demographics: Abercrombie & Fitch (adult lifestyle, 50% of revenue), Hollister (teen casual, 45%), and abercrombie kids plus Social Tourist (5% combined). Revenue splits roughly 60% stores / 40% digital, with the digital mix rising as Horowitz closes underperforming locations and invests in omnichannel capabilities like buy-online-pickup-in-store (BOPIS) and same-day delivery via DoorDash partnerships.

The competitive moat is modest but improving: brand equity among Millennials (Abercrombie) and Gen Z (Hollister, Social Tourist) creates pricing power in the $30-80 per-item range, sitting between fast fashion (H&M, Zara) and premium casual (Lululemon, Aritzia). Inventory discipline—Horowitz slashed SKU counts by 30% while improving sell-through rates—reduces markdown risk and improves margins. The Social Tourist partnership exemplifies Horowitz's digital savvy: rather than compete with TikTok-native brands, Abercrombie collaborates with influencers who have 200+ million combined followers, accessing Gen Z without traditional advertising spend.

Financial Performance

Abercrombie generated $5.2 billion in revenue in fiscal 2024, up 16% year-over-year, with operating income exceeding $520 million. The company's financial transformation mirrors its brand evolution: gross margins expanded to 62% (from 55% in 2017) through reduced promotions and better inventory management, while operating margins hit 10% despite ongoing store closures.

  • •Revenue Growth: 15-18% annually since 2020, driven by comp store sales growth (8-10%) and digital expansion
  • •Gross Margins: 60-62%, reflecting shift from promotional discounting to full-price selling and inclusive sizing uptake
  • •Operating Margins: 10%+, up from 2% in 2017, driven by inventory efficiency and digital leverage
  • •Free Cash Flow: $400M+ annually, supporting debt reduction and potential buybacks
  • •Inventory Turnover: Improved 30% since 2017, reducing markdown pressure and improving ROIC

Growth Catalysts

  • •International Expansion: 80% of revenue from U.S.; Europe and Asia offer whitespace with only 200 stores vs. 700+ domestic.
  • •Digital Penetration: Target 50%+ digital mix by 2027 through app enhancements, personalization AI, and social commerce integration.
  • •Wedding & Special Occasion: Abercrombie's YPB (Your Personal Brand) collection targeting weddings/events growing 40%+ annually.
  • •Social Tourist Scale: Expanding influencer partnerships beyond D'Amelios to other TikTok/Instagram creators with dedicated collections.
  • •Store Productivity: Closing bottom 25% of stores while investing in top-performing locations increases sales per square foot 15%+ annually.

Risks & Challenges

  • •Recession Sensitivity: Teen/young adult apparel is cyclical; economic downturn could compress margins as customers trade down to fast fashion.
  • •Fast Fashion Competition: Shein, Zara, and H&M offer $10-20 alternatives to Abercrombie's $40-80 price points, threatening market share.
  • •Inventory Risk: Fashion cycles accelerate with TikTok trends; betting wrong on styles could lead to markdowns and margin compression.
  • •Mall Dependence: 60% of stores in malls; declining mall traffic (especially post-pandemic) pressures physical retail sales.
  • •CEO Succession: Fran Horowitz is 62; her departure could disrupt the turnaround momentum and strategic continuity.

Competitive Landscape

Abercrombie competes across multiple fronts. In adult casual wear, rivals include Gap (Old Navy, Banana Republic), American Eagle (Aerie), and premium players like Lululemon and Aritzia. For teens, Hollister battles fast fashion (Shein, Zara, H&M), American Eagle, and digitally native brands like PacSun. The company's $40-80 price point positions it between fast fashion ($10-30) and premium ($80-150), targeting consumers seeking better quality than H&M but unwilling to pay Lululemon prices.

Fran Horowitz's strategic edge lies in brand relevance: Abercrombie's inclusive sizing and elevated basics resonate with Millennials tired of fast fashion waste, while Hollister and Social Tourist leverage influencer partnerships that competitors like Gap can't replicate due to brand baggage. American Eagle's Aerie has executed a similar transformation (body positivity, inclusive sizing), but Abercrombie's multi-brand strategy diversifies risk. The 8.2x forward P/E reflects lingering skepticism about durability—fair given retail's graveyard of failed turnarounds (J.Crew, Barneys)—but Horowitz's eight-year track record suggests this isn't a flash in the pan.

Who Is This Stock Suitable For?

Perfect For

  • ✓Value investors seeking retail turnarounds at 8x earnings with proven execution
  • ✓Contrarian investors betting against retail sector pessimism despite strong fundamentals
  • ✓Growth-at-a-reasonable-price (GARP) investors wanting 15%+ revenue growth at deep value multiples
  • ✓Tactical traders exploiting mispricings in out-of-favor sectors
  • ✓Retail sector specialists recognizing operational excellence vs. peer group

Less Suitable For

  • ✗Income investors (no dividend; company prioritizes debt reduction and growth)
  • ✗Risk-averse investors uncomfortable with retail cyclicality and recession sensitivity
  • ✗ESG-focused investors concerned about fast fashion environmental impact
  • ✗Long-term buy-and-hold investors preferring predictable, defensive businesses

Investment Thesis

Abercrombie & Fitch represents one of the market's most compelling value opportunities: a retail turnaround with eight years of proof, trading at distressed multiples despite sector-leading growth and profitability. Fran Horowitz's transformation—inclusive sizing, digital-first strategy, influencer partnerships—has fundamentally repositioned the brand for Millennial and Gen Z consumers. The forward P/E of 8.2x prices in continued skepticism about retail durability, yet Abercrombie's 15%+ revenue growth, 10%+ operating margins, and 40%+ digital penetration resemble a healthy specialty retailer, not a value trap.

The risk-reward is asymmetric: if Abercrombie maintains current growth (15%+) and margins expand to 12% (achievable through digital leverage), the stock deserves 12-15x earnings—implying 50%+ upside. The downside scenario—recession forces margin compression to 6-8%—would justify 6-8x earnings, limiting losses to 25-30%. For investors willing to endure retail volatility, Abercrombie offers rare combination: proven turnaround execution, structural growth drivers (digital, international), and deep value pricing that assumes reversion to mediocrity. The market may be underestimating Horowitz's ability to sustain momentum through 2027 and beyond.

Conclusion

Conclusion

Abercrombie earns a strong BUY rating for value and GARP investors seeking retail exposure with asymmetric upside. The combination of 15%+ growth, 10%+ margins, and 8x valuation creates compelling risk-reward despite cyclical risks. Existing shareholders should hold through volatility, viewing quarterly fluctuations as noise relative to the multi-year transformation story. New investors can initiate positions, treating any pullbacks below $100 as high-conviction entry points. The stock is less suitable for conservative income seekers, but ideal for those recognizing operational excellence trading at distressed prices.
Bull Case
$175 (60% upside) – International expansion accelerates, digital mix hits 50%, margins expand to 12%+
Base Case
$130 (19% upside) – Steady 12-15% revenue growth, margins hold at 10%, valuation re-rates to 12x earnings
Bear Case
$75 (31% downside) – Recession compresses margins to 6%, fast fashion erodes market share, turnaround skepticism persists

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