One-glance verdict
Undervalued
$252.27 our estimate vs market $161.24
Wall Street consensus: $165.82 (-34.3% lower than our fair-value estimate)
36% below our estimate, below the bear case
Fundamentals snapshot
Abercrombie & Fitch Co.
ANF · NYQ · Consumer Cyclical · Apparel Retail
Current price
$161.24
52-week range
$65.45 - $167.09
Market cap
$6.84B
Balance sheet
Watch
294.38x Strong cushion
Net debt $649.44M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
1 Risk
3 rewards · 1 risks
- Reward Revenue grew 1.4% last year.
- Reward Returns 40.6% on equity, ahead of 60% of its peers.
- Reward Free cash flow was positive in 9/10 years.
- Risk Insider ownership is only 2.2% (peer median: 21.4%).
What this company does
Abercrombie & Fitch Co.
Abercrombie & Fitch sells clothes and personal care items for men, women, and kids through its various brands like Abercrombie & Fitch and Hollister, both in physical stores and online. The money mainly comes from selling these products directly to customers, and it matters because strong sales in these areas can lead to better profitability, meaning more money is left over after covering the costs of running the business (a concept often looked at through things like improving margins, which is the percentage of each sales dollar left after day-to-day business costs).
How the company got here
Abercrombie & Fitch started in 1892 as a sporting goods store for the elite, selling everything from hunting gear to fishing equipment. Over the decades, it evolved, and by the late 1980s, it was acquired and began a significant shift to become a fashion retailer targeting young adults. This repositioning, under new leadership, transformed the brand into a popular apparel company. The company went public in 1996 and continued to expand its brands, including launching abercrombie kids in 1998 and Hollister in 2000. Despite facing financial challenges and bankruptcy in the 1970s, Abercrombie & Fitch has undergone a significant rebranding in recent years to focus on inclusivity and a more modern, lifestyle-oriented image.
What it actually does
Abercrombie & Fitch is a retailer that sells clothing, accessories, and personal care items for men, women, and children. They operate a direct-to-consumer model, meaning they sell their products primarily through their own stores and e-commerce websites. The company focuses on creating a brand experience that emphasizes product relevance, good fit, and convenience for shoppers, rather than competing solely on price. Their marketing is digitally driven and aims to build brand awareness and connect with customers.
Abercrombie Brands
This segment includes the Abercrombie & Fitch brand itself, as well as abercrombie kids. Abercrombie & Fitch offers apparel and accessories for men and women, focusing on contemporary styles like denim, dresses, and activewear. abercrombie kids provides similar styles tailored for children. This part of the business aims to capture a customer base looking for a more adult and inclusive lifestyle aesthetic. It has been a strong growth engine for the company recently.
Hollister Brands
The Hollister segment encompasses the Hollister brand, Gilly Hicks, and Social Tourist. Hollister is designed to appeal to teenagers with a focus on a casual, California-inspired lifestyle. Gilly Hicks offers intimates and activewear, while Social Tourist is a newer brand. This segment is important for reaching a younger demographic and maintaining a broad customer base. It represents a significant portion of the company's overall business.
What management is betting on now
Abercrombie & Fitch's current strategy centers on brand repositioning, focusing on product relevance, fit, and a more inclusive image. They are reducing their reliance on deep discounts and emphasizing a more productive omnichannel approach, meaning their physical stores and online presence work together seamlessly. Management is also investing in digital marketing and leveraging social media to connect with their target audience. This strategy aims to build brand loyalty and drive sustainable growth by offering quality products that resonate with modern consumers.
Price history
How the share price has moved
—
Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2025 Q4
$92.25M
FY2026 Q1
$256.76M
FY2026 Q2
$-54.76M
FY2026 Q3
$50.71M
FY2026 Q4
$131.84M
FY2027 Q2
$-17.09M
FY2027 Q3
$201.13M
Revenue
$1.27B
Net income
$183.72M
Diluted EPS
4.17
Operating cash flow
$269.14M
Free cash flow
$201.13M
Fetching…
Sources
Revenue
$1.11B
Net income
$67.13M
Diluted EPS
1.47
Operating cash flow
$44.26M
Free cash flow
$-17.09M
Fetching…
Sources
Revenue
$1.29B
Net income
$113.00M
Diluted EPS
2.36
Operating cash flow
$200.11M
Free cash flow
$131.84M
Fetching…
Sources
Revenue
$1.21B
Net income
$141.38M
Diluted EPS
2.91
Operating cash flow
$116.89M
Free cash flow
$50.71M
Fetching…
Sources
Revenue
$1.10B
Net income
$80.41M
Diluted EPS
1.59
Operating cash flow
$-4.00M
Free cash flow
$-54.76M
Fetching…
Sources
Revenue
$1.58B
Net income
$187.23M
Diluted EPS
3.55
Operating cash flow
$307.62M
Free cash flow
$256.76M
Fetching…
Sources
Revenue
$1.21B
Net income
$131.98M
Diluted EPS
2.50
Operating cash flow
$142.64M
Free cash flow
$92.25M
Fetching…
Sources
Is it cheap or expensive?
Fair value $252.27 vs current price $161.24
Wall Street consensus is the average analyst price target: $165.82 (-34.3% lower than our fair-value estimate).
Our most-likely fair value is $252.27 a share — about 56.5% above today's price of $161.24, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Watch
Net debt $649.4M. Interest coverage 294.4x.
Net debt
$649.44M
Interest coverage
294.38x
Abercrombie & Fitch Co.'s profit covers its interest bill about 294.4 times over. which is stronger than every peer shown here.
Watch
Worse cushion
Baseline
Better cushion
ANF
BASELINE
Abercrombie & Fitch Co.
Total debt $1.29B Interest coverage 294.38x This is the baseline the peer rows are being compared against.
Total debt $1.92B Interest coverage 22.93x -92% vs ANF Carries about 12.8x less debt cushion than ANF.
Total debt $1.21B Interest coverage 123.20x -58% vs ANF Carries about 2.4x less debt cushion than ANF.
Total debt $2.33B Interest coverage 14.50x -95% vs ANF Carries about 20.3x less debt cushion than ANF.
What you should know
The case for and against ANF
3 Rewards
1 Risk
Rewards
-
Revenue grew 1.4% last year.
-
Returns 40.6% on equity, ahead of 60% of its peers.
-
Free cash flow was positive in 9/10 years.
Risks
-
Insider ownership is only 2.2% (peer median: 21.4%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
13.92x
Forward P/E
12.49x
P/B
5.05x
P/S
1.28x
EV/EBITDA
8.38x
PEG ratio
3.62x
Profitability
How much profit each dollar creates
Gross margin
63.7%
Operating margin
19.9%
Net margin
10.0%
ROE
40.6%
ROA
13.6%
Health
Liquidity and balance-sheet strength
Debt / equity
0.94x
Current ratio
1.41x
Quick ratio
0.75x
Total debt
$1.29B
Total cash
$638.00M
Growth
How the business has been compounding
Revenue TTM
$5.34B
Revenue 5Y CAGR
9.1%
EPS TTM
11.58
EPS 5Y CAGR
493.6%
Cash flow
How much cash the business throws off
Operating CF TTM
$819.65M
Free CF TTM
$378.37M
FCF margin
7.1%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
0.0%
Last ex-div date
2020-03-05