Recent News
On January 12, 2026 Abercrombie & Fitch issued a business update announcing record quarter-to-date net sales through December while narrowing its fiscal 2025 net sales growth outlook to at least 6% and projecting an operating margin near 13%. Management flagged approximately $90 million of tariff expense expected to affect results, and the company filed an 8-K reflecting the release. Market reaction included steep intraday share declines across apparel peers on January 12–13, 2026 as investors digested the revised outlook and tariff commentary.
Technical Analysis
ADX at 35.6 indicates a strong trend environment; that strength favors directional moves and amplifies the immediate impact of news-driven bias on price discovery.
DI+ stands at 21.35 and trends decreasing while DI− sits at 28.49 and trends increasing; that directional split favors bearish pressure versus bullish pressure and aligns with the narrowed guidance reported in mid-January.
MACD registers −2.86 and trends decreasing with the MACD below its signal line; momentum therefore remains bearish and weighs on the near-term valuation pathway.
MRO reads 11.7 and trends decreasing; the positive MRO implies price currently sits above the model target and the decreasing momentum suggests potential compression toward fair-value levels.
RSI at 51.64 and trending down signals neutral-to-weakening momentum rather than an oversold condition, supporting a consolidation bias around current levels unless directional momentum accelerates.
Price trades at $96.51, below short-term averages: the 12‑day EMA at $102.30 and 26‑day EMA at $106.31 both trend down, while the 200‑day average at $88.18 sits well below price, indicating longer-term support beneath current levels. Bollinger bands place price near the lower band ($92.48 lower, $115.80 upper), consistent with recent compression and higher probability of range-bound action unless MACD or DI lines reverse.
Volume sits below 10‑ and 50‑day averages, suggesting recent moves reflected lower participation and leaving the path of least resistance vulnerable to renewed headline-driven flows.
Fundamental Analysis
Revenue totaled $1,290,619,000 with revenue growth of 6.79% and year‑over‑year revenue growth of 2.68%, showing continued top‑line expansion albeit with sequential softness. Gross margin equals 62.524%, which sits above the industry peer mean of 40.822% and supports healthy operating leverage when sales accelerate.
EBIT reached $161,512,000 and EBIT margin measured 12.51%, positioned above the industry peer mean of 10.99% and above the industry peer median of 10.83%. Quarter‑over‑quarter EBIT margin declined by 27.90% and year‑over‑year margin declined by 19.78%, reflecting margin compression versus recent periods despite the above‑peer level.
Operating income at $155,021,000 produced an operating margin of 12.01% with QoQ operating margin down 29.76% and YoY down 23.00%, consistent with management’s revised operating margin commentary tied to tariff effects and cost dynamics.
EPS came in at $2.36 versus an estimate of $2.15, yielding an EPS surprise of 9.77%, while forward EPS projects $2.61 and forward PE stands at 30.26. Reported PE sits at 32.60 and P/B stands at 2.68 with price‑to‑sales of 2.73; those valuation metrics reflect a premium relative to many apparel peers but also capture strong margin structure and cash generation.
Free cash flow totaled $131,838,000 with a free cash flow yield of 3.74% and free cash growth showing mixed signals; operating cash flow reached $200,107,000 and the company reported a cash balance of $605,783,000 with $631,038,000 in cash and short‑term investments, supporting liquidity.
Leverage measures: total debt $1,130,888,000, debt/EBITDA ~5.65 and debt/equity 0.86. Interest coverage equals 293.66, indicating negligible near‑term interest burden. Current ratio reads 1.38 and quick ratio 0.76, while the cash conversion cycle of 60.70 days sits above the industry peer mean of 42.27 days, pointing to heavier working capital tied up in inventory and payables.
Returns: ROA 3.33%, ROE 8.58% (above the industry peer mean), and ROIC 8.77% provide positive capital returns but QoQ and YoY trends show notable declines across these metrics, reflecting margin pressure and recent operating cadence.
WMDST values the stock as under-valued. The valuation view reflects high gross margins, robust cash balances, and meaningful free cash flow, offset by tariff‑related margin compression, elevated debt/EBITDA, and weakening quarter‑over‑quarter profitability metrics.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-10-31 |
| REPORT DATE: | 2025-11-25 |
| NEXT REPORT DATE: | 2026-02-24 |
| CASH FLOW | Begin Period Cash Flow | $ 580.3 M |
| Operating Cash Flow | $ 200.1 M | |
| Capital Expenditures | $ -68.27 M | |
| Change In Working Capital | $ 31.0 M | |
| Dividends Paid | — | |
| Cash Flow Delta | $ 32.2 M | |
| End Period Cash Flow | $ 612.6 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 1.3 B | |
| Forward Revenue | $ 342.0 M | |
| COSTS | ||
| Cost Of Revenue | $ 483.7 M | |
| Depreciation | $ 38.6 M | |
| Depreciation and Amortization | $ 38.6 M | |
| Research and Development | — | |
| Total Operating Expenses | $ 1.1 B | |
| PROFITABILITY | ||
| Gross Profit | $ 806.9 M | |
| EBITDA | $ 200.1 M | |
| EBIT | $ 161.5 M | |
| Operating Income | $ 155.0 M | |
| Interest Income | $ 6.5 M | |
| Interest Expense | $ 550.0 K | |
| Net Interest Income | $ 5.9 M | |
| Income Before Tax | $ 161.0 M | |
| Tax Provision | $ 45.9 M | |
| Tax Rate | 28.5 % | |
| Net Income | $ 113.0 M | |
| Net Income From Continuing Operations | $ 115.1 M | |
| EARNINGS | ||
| EPS Estimate | $ 2.15 | |
| EPS Actual | $ 2.36 | |
| EPS Difference | $ 0.21 | |
| EPS Surprise | 9.767 % | |
| Forward EPS | $ 2.61 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 3.5 B | |
| Intangible Assets | — | |
| Net Tangible Assets | $ 1.3 B | |
| Total Current Assets | $ 1.6 B | |
| Cash and Short-Term Investments | $ 631.0 M | |
| Cash | $ 605.8 M | |
| Net Receivables | $ 131.7 M | |
| Inventory | $ 730.5 M | |
| Long-Term Investments | $ 242.8 M | |
| LIABILITIES | ||
| Accounts Payable | $ 461.5 M | |
| Short-Term Debt | — | |
| Total Current Liabilities | $ 1.2 B | |
| Net Debt | — | |
| Total Debt | $ 1.1 B | |
| Total Liabilities | $ 2.1 B | |
| EQUITY | ||
| Total Equity | $ 1.3 B | |
| Retained Earnings | $ 3.5 B | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 28.72 | |
| Shares Outstanding | 45.856 M | |
| Revenue Per-Share | $ 28.15 | |
| VALUATION | Market Capitalization | $ 3.5 B |
| Enterprise Value | $ 4.0 B | |
| Enterprise Multiple | 20.131 | |
| Enterprise Multiple QoQ | 3.437 % | |
| Enterprise Multiple YoY | -32.097 % | |
| Enterprise Multiple IPRWA | high: 135.997 mean: 70.251 median: 66.557 ANF: 20.131 low: 12.592 |
|
| EV/R | 3.121 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 2.643 | |
| Asset To Liability | 1.62 | |
| Debt To Capital | 0.462 | |
| Debt To Assets | 0.325 | |
| Debt To Assets QoQ | -2.403 % | |
| Debt To Assets YoY | 405.176 % | |
| Debt To Assets IPRWA | high: 1.07 mean: 0.462 median: 0.442 ANF: 0.325 low: 0.13 |
|
| Debt To Equity | 0.859 | |
| Debt To Equity QoQ | 0.937 % | |
| Debt To Equity YoY | 409.214 % | |
| Debt To Equity IPRWA | high: 4.258 mean: 1.146 median: 0.978 ANF: 0.859 low: -2.088 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 2.679 | |
| Price To Book QoQ | -19.76 % | |
| Price To Book YoY | -54.183 % | |
| Price To Book IPRWA | high: 8.837 mean: 4.011 median: 3.522 ANF: 2.679 low: -3.282 |
|
| Price To Earnings (P/E) | 32.6 | |
| Price To Earnings QoQ | 3.486 % | |
| Price To Earnings YoY | -43.706 % | |
| Price To Earnings IPRWA | high: 152.3 median: 97.272 mean: 91.64 ANF: 32.6 low: -121.919 |
|
| PE/G Ratio | -1.725 | |
| Price To Sales (P/S) | 2.734 | |
| Price To Sales QoQ | -23.432 % | |
| Price To Sales YoY | -54.683 % | |
| Price To Sales IPRWA | high: 13.982 mean: 8.564 median: 8.143 ANF: 2.734 low: 0.253 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 30.26 | |
| Forward PE/G | -1.601 | |
| Forward P/S | 9.942 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | -3.387 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.381 | |
| Asset Turnover Ratio QoQ | 0.746 % | |
| Asset Turnover Ratio YoY | -0.525 % | |
| Asset Turnover Ratio IPRWA | high: 0.64 ANF: 0.381 mean: 0.313 median: 0.296 low: 0.079 |
|
| Receivables Turnover | 8.443 | |
| Receivables Turnover Ratio QoQ | 0.353 % | |
| Receivables Turnover Ratio YoY | -20.858 % | |
| Receivables Turnover Ratio IPRWA | high: 85.724 mean: 13.269 median: 11.93 ANF: 8.443 low: 0.298 |
|
| Inventory Turnover | 0.731 | |
| Inventory Turnover Ratio QoQ | -8.143 % | |
| Inventory Turnover Ratio YoY | 6.719 % | |
| Inventory Turnover Ratio IPRWA | high: 1.747 ANF: 0.731 mean: 0.687 median: 0.661 low: 0.308 |
|
| Days Sales Outstanding (DSO) | 10.808 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 60.702 | |
| Cash Conversion Cycle Days QoQ | -2.533 % | |
| Cash Conversion Cycle Days YoY | 21.96 % | |
| Cash Conversion Cycle Days IPRWA | high: 184.758 ANF: 60.702 mean: 42.269 median: 37.31 low: -19.038 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 2.89 | |
| CapEx To Revenue | -0.053 | |
| CapEx To Depreciation | -1.77 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 1.3 B | |
| Net Invested Capital | $ 1.3 B | |
| Invested Capital | $ 1.3 B | |
| Net Tangible Assets | $ 1.3 B | |
| Net Working Capital | $ 446.5 M | |
| LIQUIDITY | ||
| Cash Ratio | 0.543 | |
| Current Ratio | 1.384 | |
| Current Ratio QoQ | -3.527 % | |
| Current Ratio YoY | -1.197 % | |
| Current Ratio IPRWA | high: 2.205 ANF: 1.384 median: 1.328 mean: 1.255 low: 0.811 |
|
| Quick Ratio | 0.756 | |
| Quick Ratio QoQ | -12.445 % | |
| Quick Ratio YoY | -7.232 % | |
| Quick Ratio IPRWA | high: 1.527 ANF: 0.756 mean: 0.365 median: 0.255 low: 0.059 |
|
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 5.652 | |
| Cost Of Debt | 0.04 % | |
| Interest Coverage Ratio | 293.658 | |
| Interest Coverage Ratio QoQ | -13.198 % | |
| Interest Coverage Ratio YoY | -11.397 % | |
| Interest Coverage Ratio IPRWA | ANF: 293.658 high: 96.404 mean: 17.062 median: 7.379 low: -7.178 |
|
| Operating Cash Flow Ratio | 0.129 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 83.814 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 5.39 % | |
| Revenue Growth | 6.79 % | |
| Revenue Growth QoQ | -33.024 % | |
| Revenue Growth YoY | 2.677 % | |
| Revenue Growth IPRWA | high: 14.292 % ANF: 6.79 % median: 2.479 % mean: -7.067 % low: -25.856 % |
|
| Earnings Growth | -18.9 % | |
| Earnings Growth QoQ | -122.766 % | |
| Earnings Growth YoY | — | |
| Earnings Growth IPRWA | high: 292.754 % ANF: -18.9 % mean: -21.67 % median: -32.812 % low: -400.0 % |
|
| MARGINS | ||
| Gross Margin | 62.524 % | |
| Gross Margin QoQ | -0.176 % | |
| Gross Margin YoY | -3.944 % | |
| Gross Margin IPRWA | high: 70.897 % ANF: 62.524 % median: 41.28 % mean: 40.822 % low: 10.184 % |
|
| EBIT Margin | 12.514 % | |
| EBIT Margin QoQ | -27.898 % | |
| EBIT Margin YoY | -19.777 % | |
| EBIT Margin IPRWA | high: 18.986 % ANF: 12.514 % mean: 10.99 % median: 10.828 % low: -7.692 % |
|
| Return On Sales (ROS) | 12.011 % | |
| Return On Sales QoQ | -29.76 % | |
| Return On Sales YoY | -23.001 % | |
| Return On Sales IPRWA | high: 18.986 % ANF: 12.011 % mean: 11.176 % median: 11.014 % low: -7.69 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 131.8 M | |
| Free Cash Flow Yield | 3.737 % | |
| Free Cash Flow Yield QoQ | 218.043 % | |
| Free Cash Flow Yield YoY | 195.415 % | |
| Free Cash Flow Yield IPRWA | high: 20.771 % ANF: 3.737 % median: 0.972 % mean: 0.652 % low: -10.237 % |
|
| Free Cash Growth | 159.964 % | |
| Free Cash Growth QoQ | -183.053 % | |
| Free Cash Growth YoY | -750.207 % | |
| Free Cash Growth IPRWA | high: 382.415 % ANF: 159.964 % median: -5.56 % mean: -109.313 % low: -517.24 % |
|
| Free Cash To Net Income | 1.167 | |
| Cash Flow Margin | 11.608 % | |
| Cash Flow To Earnings | 1.326 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.03 | |
| Return On Assets (ROA) | 3.332 % | |
| Return On Assets QoQ | -24.615 % | |
| Return On Assets YoY | -20.23 % | |
| Return On Assets IPRWA | high: 4.623 % ANF: 3.332 % median: 2.721 % mean: 2.255 % low: -2.24 % |
|
| Return On Capital Employed (ROCE) | 6.971 % | |
| Return On Equity (ROE) | 0.086 | |
| Return On Equity QoQ | -21.57 % | |
| Return On Equity YoY | -18.917 % | |
| Return On Equity IPRWA | high: 0.117 ANF: 0.086 median: 0.014 mean: -0.017 low: -0.164 |
|
| DuPont ROE | 8.662 % | |
| Return On Invested Capital (ROIC) | 8.77 % | |
| Return On Invested Capital QoQ | -21.197 % | |
| Return On Invested Capital YoY | -134.522 % | |
| Return On Invested Capital IPRWA | high: 11.383 % ANF: 8.77 % median: 7.379 % mean: 6.994 % low: -3.079 % |
|