📊 ANF Key Takeaways
Is Abercrombie & Fitch Co /DE/ (ANF) a Good Investment?
Abercrombie & Fitch demonstrates exceptional profitability with strong margins (61.2% gross, 12.9% operating) and excellent returns on equity (25.4%) and assets (9.6%), supported by zero long-term debt and substantial operating cash flow. The massive revenue growth of 17,664% YoY suggests either a significant accounting change, acquisition, or data anomaly that warrants investigation, though underlying operational metrics remain solid. Liquidity is adequate with $605.8M cash and a 1.38x current ratio, though free cash flow conversion (3.6% margin) is modest relative to operating cash flow, indicating capital-intensive operations.
Abercrombie & Fitch shows strong underlying fundamentals, with high gross margins, double-digit operating margins, solid returns on equity and assets, and a debt-free balance sheet supported by substantial cash. Profitability remains robust despite slightly lower net income year over year, suggesting resilient core operations. The main caveat is growth quality: the reported revenue surge appears distorted, while free cash flow conversion is modest relative to earnings.
Why Buy Abercrombie & Fitch Co /DE/ Stock? ANF Key Strengths
- Zero long-term debt with strong debt/equity ratio of 0.00x provides financial flexibility
- Exceptional profitability metrics with 61.2% gross margin and 9.3% net margin demonstrate pricing power
- Outstanding returns on equity (25.4%) and assets (9.6%) indicate efficient capital deployment
- Strong operating cash flow of $313M provides self-funding capability
- Substantial cash position of $605.8M relative to $3.5B total assets
- High interest coverage ratio of 42.2x shows no debt service pressure
- Strong profitability profile with 61.2% gross margin, 12.9% operating margin, and 9.3% net margin
- Healthy balance sheet with $605.78M in cash and no long-term debt
- Strong capital efficiency, reflected in 25.4% ROE and 9.6% ROA
ANF Stock Risks: Abercrombie & Fitch Co /DE/ Investment Risks
- Extraordinary 17,664% revenue growth is highly suspicious and suggests potential data error, acquisition, or one-time event requiring clarification
- Quick ratio of 0.76x indicates potential working capital constraints and liquidity concerns
- Free cash flow margin of only 3.6% is concerning despite $313M operating cash flow, suggesting heavy capital requirements
- Net income declined 1.4% YoY despite massive revenue growth, indicating margin compression or one-time charges
- 27 Form 4 insider filings in 90 days requires monitoring for potential insider sales patterns
- Retail sector exposure to consumer discretionary spending creates macro sensitivity
- Revenue growth quality is unclear because the reported +17664.2% YoY increase is likely distorted or non-recurring
- Net income declined 1.4% YoY, which may indicate margin pressure or normalization after a strong prior period
- Free cash flow margin of 3.6% is relatively modest versus accounting profitability, limiting cash conversion quality
Key Metrics to Watch
- Revenue sustainability and normalization to understand the 17,664% growth driver
- Free cash flow conversion rate relative to operating cash flow
- Working capital management and quick ratio improvement
- Gross and operating margin trends to confirm they are not contracting
- Capital expenditure efficiency and asset turnover
- Insider trading activity patterns and net share count changes
- Sustainable year-over-year revenue growth excluding data anomalies
- Free cash flow conversion relative to net income and operating cash flow
Abercrombie & Fitch Co /DE/ (ANF) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 3.6% FCF margin may limit capital allocation flexibility.
ANF Profit Margin, ROE & Profitability Analysis
ANF vs Consumer Sector: How Abercrombie & Fitch Co /DE/ Compares
How Abercrombie & Fitch Co /DE/ compares to Consumer sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Abercrombie & Fitch Co /DE/ Stock Overvalued? ANF Valuation Analysis 2026
Based on fundamental analysis, Abercrombie & Fitch Co /DE/ appears fundamentally strong relative to the Consumer sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Abercrombie & Fitch Co /DE/ Balance Sheet: ANF Debt, Cash & Liquidity
ANF Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Abercrombie & Fitch Co /DE/'s revenue has grown significantly by 42% over the 5-year period, indicating strong business expansion. The most recent EPS of $6.22 reflects profitable operations.
ANF Revenue Growth, EPS Growth & YoY Performance
ANF Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $1.2B | $113.0M | $2.36 |
| Q2 2025 | $1.1B | $133.2M | $2.50 |
| Q1 2025 | $1.0B | $80.4M | $1.59 |
| Q3 2024 | $1.1B | $96.2M | $1.83 |
| Q2 2024 | $935.3M | $56.9M | $1.10 |
| Q1 2024 | $836.0M | $16.6M | $0.32 |
| Q3 2023 | $880.1M | -$2.2M | $-0.04 |
| Q2 2023 | $805.1M | -$16.8M | $-0.33 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Abercrombie & Fitch Co /DE/ Dividends, Buybacks & Capital Allocation
ANF SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Abercrombie & Fitch Co /DE/ (CIK: 0001018840)
📋 Recent SEC Filings
❓ Frequently Asked Questions about ANF
What is the AI rating for ANF?
Abercrombie & Fitch Co /DE/ (ANF) has a Combined AI Rating of BUY from Claude (BUY) and ChatGPT (BUY) with 75% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are ANF's key strengths?
Claude: Zero long-term debt with strong debt/equity ratio of 0.00x provides financial flexibility. Exceptional profitability metrics with 61.2% gross margin and 9.3% net margin demonstrate pricing power. ChatGPT: Strong profitability profile with 61.2% gross margin, 12.9% operating margin, and 9.3% net margin. Healthy balance sheet with $605.78M in cash and no long-term debt.
What are the risks of investing in ANF?
Claude: Extraordinary 17,664% revenue growth is highly suspicious and suggests potential data error, acquisition, or one-time event requiring clarification. Quick ratio of 0.76x indicates potential working capital constraints and liquidity concerns. ChatGPT: Revenue growth quality is unclear because the reported +17664.2% YoY increase is likely distorted or non-recurring. Net income declined 1.4% YoY, which may indicate margin pressure or normalization after a strong prior period.
What is ANF's revenue and growth?
Abercrombie & Fitch Co /DE/ reported revenue of $3.6B.
Does ANF pay dividends?
Abercrombie & Fitch Co /DE/ does not currently pay dividends.
Where can I find ANF SEC filings?
Official SEC filings for Abercrombie & Fitch Co /DE/ (CIK: 0001018840) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is ANF's EPS?
Abercrombie & Fitch Co /DE/ has a diluted EPS of $6.83.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is ANF a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Abercrombie & Fitch Co /DE/ has a BUY rating with 75% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is ANF stock overvalued or undervalued?
Valuation metrics for ANF: ROE of 25.4% (sector avg: 18%), net margin of 9.3% (sector avg: 8%). Higher ROE suggests strong returns relative to peers.
Should I buy ANF stock in 2026?
Our dual AI analysis gives Abercrombie & Fitch Co /DE/ a combined BUY rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is ANF's free cash flow?
Abercrombie & Fitch Co /DE/'s operating cash flow is $313.0M, with capital expenditures of $185.2M. FCF margin is 3.6%.
How does ANF compare to other Consumer stocks?
Vs Consumer sector averages: Net margin 9.3% (avg: 8%), ROE 25.4% (avg: 18%), current ratio 1.38 (avg: 1.5).
Why is ANF's return on equity (ROE) so high?
Abercrombie & Fitch Co /DE/ has a return on equity of 25.4%, significantly above the Consumer sector average of 18%. A high ROE indicates the company is efficient at generating profits from shareholder equity. This is supported by a 9.3% net margin.