NYSE:ANF

Stock Analysis Report

Abercrombie & Fitch

Executive Summary

Abercrombie & Fitch Co., through its subsidiaries, operates as a specialty retailer.


Snowflake Analysis

Excellent balance sheet average dividend payer.


Similar Companies

Share Price & News

How has Abercrombie & Fitch's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ANF's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

20.6%

ANF

22.8%

US Specialty Retail

12.5%

US Market


1 Year Return

-63.7%

ANF

-24.5%

US Specialty Retail

-12.7%

US Market

Return vs Industry: ANF underperformed the US Specialty Retail industry which returned -24.5% over the past year.

Return vs Market: ANF underperformed the US Market which returned -12.7% over the past year.


Shareholder returns

ANFIndustryMarket
7 Day20.6%22.8%12.5%
30 Day-24.5%-24.3%-14.7%
90 Day-42.7%-31.5%-21.5%
1 Year-61.7%-63.7%-23.4%-24.5%-10.9%-12.7%
3 Year0.2%-12.8%-0.2%-5.1%12.6%5.4%
5 Year-44.9%-56.0%-0.09%-8.1%31.9%17.5%

Price Volatility Vs. Market

How volatile is Abercrombie & Fitch's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Abercrombie & Fitch undervalued compared to its fair value and its price relative to the market?

25.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ANF ($9.91) is trading below our estimate of fair value ($13.36)

Significantly Below Fair Value: ANF is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: ANF is poor value based on its PE Ratio (16.2x) compared to the Specialty Retail industry average (8.5x).

PE vs Market: ANF is poor value based on its PE Ratio (16.2x) compared to the US market (13x).


Price to Earnings Growth Ratio

PEG Ratio: ANF's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: ANF is good value based on its PB Ratio (0.6x) compared to the US Specialty Retail industry average (0.8x).


Next Steps

Future Growth

How is Abercrombie & Fitch forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

-26.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ANF's earnings are forecast to decline over the next 3 years (-26.3% per year).

Earnings vs Market: ANF's earnings are forecast to decline over the next 3 years (-26.3% per year).

High Growth Earnings: ANF's earnings are forecast to decline over the next 3 years.

Revenue vs Market: ANF's revenue (0.6% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: ANF's revenue (0.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ANF's Return on Equity is forecast to be low in 3 years time (0.6%).


Next Steps

Past Performance

How has Abercrombie & Fitch performed over the past 5 years?

22.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ANF has a large one-off loss of $66.4M impacting its February 1 2020 financial results.

Growing Profit Margin: ANF's current net profit margins (1.1%) are lower than last year (2.1%).


Past Earnings Growth Analysis

Earnings Trend: ANF's earnings have grown significantly by 22.3% per year over the past 5 years.

Accelerating Growth: ANF's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: ANF had negative earnings growth (-47%) over the past year, making it difficult to compare to the Specialty Retail industry average (6.9%).


Return on Equity

High ROE: ANF's Return on Equity (4.2%) is considered low.


Next Steps

Financial Health

How is Abercrombie & Fitch's financial position?


Financial Position Analysis

Short Term Liabilities: ANF's short term assets ($1.3B) exceed its short term liabilities ($815.4M).

Long Term Liabilities: ANF's short term assets ($1.3B) do not cover its long term liabilities ($1.7B).


Debt to Equity History and Analysis

Debt Level: ANF's debt to equity ratio (21.7%) is considered satisfactory.

Reducing Debt: ANF's debt to equity ratio has reduced from 24.8% to 21.7% over the past 5 years.

Debt Coverage: ANF's debt is well covered by operating cash flow (104.3%).

Interest Coverage: ANF's interest payments on its debt are well covered by EBIT (17.6x coverage).


Balance Sheet

Inventory Level: ANF has a high level of physical assets or inventory.

Debt Coverage by Assets: ANF's debt is covered by short term assets (assets are 5.5x debt).


Next Steps

Dividend

What is Abercrombie & Fitch's current dividend yield, its reliability and sustainability?

8.07%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ANF's dividend (8.07%) is higher than the bottom 25% of dividend payers in the US market (1.98%).

High Dividend: ANF's dividend (8.07%) is in the top 25% of dividend payers in the US market (5.49%)


Stability and Growth of Payments

Stable Dividend: ANF's dividends per share have been stable in the past 10 years.

Growing Dividend: ANF's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (131%), ANF's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ANF's dividends in 3 years are not forecast to be well covered by earnings (137.9% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.2yrs

Average management tenure


CEO

Fran Horowitz (55yo)

3s

Tenure

US$8,481,742

Compensation

Ms. Fran Horowitz has been the Chief Executive Officer of Abercrombie & Fitch Co. since February 1, 2017. Ms. Horowitz served as President and Chief Merchandising Officer of Abercrombie & Fitch Co. from De ...


CEO Compensation Analysis

Compensation vs Market: Fran's total compensation ($USD8.48M) is above average for companies of similar size in the US market ($USD3.18M).

Compensation vs Earnings: Fran's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Fran Horowitz
CEO & Director3yrsUS$8.48m0.61% $3.8m
Scott Lipesky
Senior VP & CFO2.42yrsUS$1.84m0.019% $120.2k
Gregory Henchel
Senior VP1.42yrsUS$816.38k0.0026% $16.2k
Kristin Scott
President of Global Brands3.58yrsUS$3.94m0.12% $776.8k
Pamela Quintiliano
Vice President of Investor Relations1.25yrsno datano data
Willie Smith
Chief Marketing Officer3.17yrsno datano data
John Gabrielli
Chief Human Resources Officerno datano data0.064% $397.3k
David Leino
Senior Vice President of Global Real Estate20yrsUS$1.83mno data
David Cupps
Senior Vice President and Senior Counsel12.92yrsUS$1.25mno data
James Bierbower
Executive Vice President of Human Resources6.17yrsno datano data

3.2yrs

Average Tenure

54yo

Average Age

Experienced Management: ANF's management team is considered experienced (3.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Fran Horowitz
CEO & Director3yrsUS$8.48m0.61% $3.8m
James Bachmann
Independent Director16.67yrsUS$269.82k0.089% $556.1k
Nigel Travis
Independent Director1yrno data0.0085% $53.1k
Kerrii Anderson
Independent Director2yrsUS$273.11k0.023% $144.2k
Michael Greenlees
Independent Director9yrsUS$265.38k0.0024% $14.9k
Charles Perrin
Independent Director6.17yrsUS$279.61k0.082% $508.3k
Archie Griffin
Independent Director20.17yrsUS$247.88k0.025% $153.3k
Terry Burman
Non-Executive Chairman2yrsUS$468.30k0.082% $509.7k
Helen McCluskey
Independent Director1yrno data0.0039% $24.2k
Sarah Gallagher
Independent Director6.17yrsUS$235.38k0.041% $257.9k

4.6yrs

Average Tenure

68yo

Average Age

Experienced Board: ANF's board of directors are considered experienced (4.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: ANF insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Abercrombie & Fitch Co.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Abercrombie & Fitch Co.
  • Ticker: ANF
  • Exchange: NYSE
  • Founded: 1892
  • Industry: Apparel Retail
  • Sector: Retail
  • Market Cap: US$622.209m
  • Shares outstanding: 62.79m
  • Website: https://www.abercrombie.com

Number of Employees


Location

  • Abercrombie & Fitch Co.
  • 6301 Fitch Path
  • New Albany
  • Ohio
  • 43054
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ANFNYSE (New York Stock Exchange)YesClass A Common StockUSUSDSep 1996
AFTDB (Deutsche Boerse AG)YesClass A Common StockDEEURSep 1996
AFTBRSE (Berne Stock Exchange)YesClass A Common StockCHCHFSep 1996
0R32LSE (London Stock Exchange)YesClass A Common StockGBUSDSep 1996
ANFBASE (Buenos Aires Stock Exchange)CEDEAR EACH 1 REP 1 COM USD0ARARSApr 2019

Biography

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, intimates, and accessories for men, women, and children under the Hollister, Abercrombie & Fitch, abercrombie kids, and Gilly Hicks brands. As of March 15, 2020, it operated approximately 850 stores in North America, Europe, Asia, and the Middle East. The company sells products through its stores and direct-to-consumer channels; various third-party wholesale, franchise, and licensing arrangements; and e-commerce platforms. Abercrombie & Fitch Co. was founded in 1892 and is headquartered in New Albany, Ohio. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/30 00:17
End of Day Share Price2020/03/27 00:00
Earnings2020/02/01
Annual Earnings2020/02/01


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.