ANF - Abercrombie & Fitch's Current Share Price Is Not Justified

2024-02-22 12:44:46 ET

Summary

• Abercrombie & Fitch's stock has rallied over 600% despite declining sales, elevated costs, and declining demand for the Hollister brand, since our first article in September 2022.
• Sales have been relatively stagnant over the past five years, and recent upticks are likely due to seasonality rather than sustained growth.
• The company's valuation is significantly higher than its peers, and its profitability has not shown significant improvement.
• For these reasons, we believe that the current share price is not justified.

Abercrombie & Fitch Co. ( ANF ), through its subsidiaries, operates as a specialty retailer. The company operates in two segments, Hollister and Abercrombie....

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