NYSE:ANF

Stock Analysis Report

Abercrombie & Fitch

Executive Summary

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

Rewards

Earnings are forecast to grow 54.65% per year

Earnings have grown 14.2% per year over the past 5 years

Pays a high and reliable dividend of 4.37%

Risk Analysis

Dividend of 4.37% is not well covered by earnings

Large one-off items impacting financial results



Snowflake Analysis

Excellent balance sheet established dividend payer.


Similar Companies

Foot Locker

NYSE:FL

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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-6.1%

ANF

0.3%

US Specialty Retail

0.8%

US Market


1 Year Return

-14.2%

ANF

23.1%

US Specialty Retail

25.1%

US Market

Return vs Industry: ANF underperformed the US Specialty Retail industry which returned 23.7% over the past year.

Return vs Market: ANF underperformed the US Market which returned 24.7% over the past year.


Shareholder returns

ANFIndustryMarket
7 Day-6.1%0.3%0.8%
30 Day3.8%0.8%3.1%
90 Day5.9%6.6%10.9%
1 Year-10.2%-14.2%25.1%23.1%27.7%25.1%
3 Year68.1%46.0%44.4%37.1%51.3%41.6%
5 Year-20.7%-36.3%48.1%35.5%77.2%57.6%

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?

21.11x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ANF ($18.32) is trading above our estimate of fair value ($11.66)

Significantly Below Fair Value: ANF is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: ANF is poor value based on its PE Ratio (22.5x) compared to the Specialty Retail industry average (17.1x).

PE vs Market: ANF is poor value based on its PE Ratio (22.5x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: ANF is good value based on its PEG Ratio (0.4x)


Price to Book Ratio

PB vs Industry: ANF is good value based on its PB Ratio (1.2x) compared to the US Specialty Retail industry average (1.5x).


Next Steps

Future Growth

How is Abercrombie & Fitch forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

54.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ANF's forecast earnings growth (54.6% per year) is above the savings rate (1.7%).

Earnings vs Market: ANF's earnings (54.6% per year) are forecast to grow faster than the US market (14.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: ANF's revenue (1.6% per year) is forecast to grow slower than the US market (7.5% per year).

High Growth Revenue: ANF's revenue (1.6% 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 (4.5%).


Next Steps

Past Performance

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

14.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ANF has a large one-off loss of $59.4M impacting its November 2 2019 financial results.

Growing Profit Margin: ANF's current net profit margins (1.5%) are higher than last year (1.4%).


Past Earnings Growth Analysis

Earnings Trend: ANF's earnings have grown by 14.2% per year over the past 5 years.

Accelerating Growth: ANF's earnings growth over the past year (2.9%) is below its 5-year average (14.2% per year).

Earnings vs Industry: ANF earnings growth over the past year (2.9%) underperformed the Specialty Retail industry 4.5%.


Return on Equity

High ROE: ANF's Return on Equity (5.8%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Abercrombie & Fitch's financial position?


Financial Position Analysis

Short Term Liabilities: ANF's short term assets ($1.2B) exceed its short term liabilities ($837.3M).

Long Term Liabilities: ANF's short term assets ($1.2B) do not cover its long term liabilities ($1.7B).


Debt to Equity History and Analysis

Debt Level: ANF's debt to equity ratio (24.3%) is considered satisfactory.

Reducing Debt: ANF's debt to equity ratio has reduced from 25% to 24.3% over the past 5 years.

Debt Coverage: ANF's debt is well covered by operating cash flow (100.2%).

Interest Coverage: ANF's interest payments on its debt are well covered by EBIT (19.1x 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 4.9x debt).


Next Steps

Dividend

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

4.65%

Current Dividend Yield


Dividend Yield vs Market

company4.6%marketbottom25%1.4%markettop25%3.7%industryaverage1.8%forecastin3Years4.7%

Current dividend yield vs market & industry

Notable Dividend: ANF's dividend (4.37%) is higher than the bottom 25% of dividend payers in the US market (1.4%).

High Dividend: ANF's dividend (4.37%) is in the top 25% of dividend payers in the US market (3.66%)


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 (98.1%), ANF's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ANF's dividends in 3 years are forecast to be covered by earnings (59.5% payout ratio).


Next Steps

Management

What is the CEO of Abercrombie & Fitch's salary, the management and board of directors tenure and is there insider trading?

3.0yrs

Average management tenure


CEO

Fran Horowitz (55yo)

2.9yrs

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 ($USD8.48M) is above average for companies of similar size in the US market ($USD2.53M).

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


Management Age and Tenure

3.0yrs

Average Tenure

54yo

Average Age

Experienced Management: ANF's management team is considered experienced (3 years average tenure).


Board Age and Tenure

4.5yrs

Average Tenure

68yo

Average Age

Experienced Board: ANF's board of directors are considered experienced (4.5 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$74,96612 Mar 19
Nigel Travis
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,917
Max PriceUS$25.70

Ownership Breakdown

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


Management Team

  • David Leino (55yo)

    Senior Vice President of Global Real Estate

    • Tenure: 19.9yrs
    • Compensation: US$1.83m
  • Greg Henchel (51yo)

    Senior VP

    • Tenure: 1.3yrs
    • Compensation: US$816.38k
  • David Cupps (82yo)

    Senior Vice President and Senior Counsel

    • Tenure: 12.8yrs
    • Compensation: US$1.25m
  • Pam Quintiliano

    Vice President of Investor Relations

    • Tenure: 1.1yrs
  • Will Smith

    Chief Marketing Officer

    • Tenure: 3yrs
  • Fran Horowitz (55yo)

    CEO & Director

    • Tenure: 2.9yrs
    • Compensation: US$8.48m
  • Jim Bierbower (54yo)

    Executive Vice President of Human Resources

    • Tenure: 6yrs
  • John Gabrielli

    Chief Human Resources Officer

    • Kristin Scott (51yo)

      President of Global Brands

      • Tenure: 3.4yrs
      • Compensation: US$3.94m
    • Scott Lipesky (44yo)

      Senior VP & CFO

      • Tenure: 2.3yrs
      • Compensation: US$1.84m

    Board Members

    • James Bachmann (76yo)

      Independent Director

      • Tenure: 16.5yrs
      • Compensation: US$269.82k
    • Nigel Travis (69yo)

      Independent Director

      • Tenure: 0.9yrs
    • Kerrii Anderson (62yo)

      Independent Director

      • Tenure: 1.9yrs
      • Compensation: US$273.11k
    • Michael Greenlees (72yo)

      Independent Director

      • Tenure: 8.9yrs
      • Compensation: US$265.38k
    • Charlie Perrin (74yo)

      Independent Director

      • Tenure: 6yrs
      • Compensation: US$279.61k
    • Archie Griffin (64yo)

      Independent Director

      • Tenure: 20yrs
      • Compensation: US$247.88k
    • Terry Burman (73yo)

      Non-Executive Chairman

      • Tenure: 1.9yrs
      • Compensation: US$468.30k
    • Helen McCluskey (64yo)

      Independent Director

      • Tenure: 0.9yrs
    • Sarah Gallagher (67yo)

      Independent Director

      • Tenure: 6yrs
      • Compensation: US$235.38k
    • Fran Horowitz (55yo)

      CEO & Director

      • Tenure: 2.9yrs
      • Compensation: US$8.48m

    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$1.080b
    • Shares outstanding: 62.75m
    • 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 June 14, 2019, 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 Analysis2020/01/21 23:39
    End of Day Share Price2020/01/21 00:00
    Earnings2019/11/02
    Annual Earnings2019/02/02


    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.