ANF - Abercrombie & Fitch: A Tech-Focused Company Doing Retail

2024-06-20 15:04:00 ET

Summary

• Over the past year, Abercrombie's stock price has quadrupled in value and outperformed the S&P 500 and many of its peers by a wide margin.
• The company has undergone a very successful digital transformation. In five years, ANF evolved from a traditional retailer to a digitally operated retail tech company.
• We believe the market has yet to fully appreciate Abercrombie's digital capabilities. There is potential for further multiple expansion as the company continues to deliver strong financial results.

Another very strong quarter

Abercrombie & Fitch Co. ( ANF ) reported its Q1 financial results in May. Earnings were very strong as revenue increased 22% to $1 billion. EPS came in at $2.14 from $0.34 a year ago and the company achieved a record 13% operating margin (vs. 4.1% last year). The market responded very positively to the results, as the stock is up more than 20% since the earnings release. Over the past year, Abercrombie's stock price has quadrupled in value and outperformed the S&P 500 and many of its peers by a wide margin (see below)....

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