Abercrombie & Fitch: Don’t Forget The Fashion Risk


  • Abercrombie & Fitch has driven an impressive brand turnaround, fueled by changing fashion trends making Abercrombie brands more attractive to young people.
  • Investors should still note the risk of ever-changing fashion trends that could deteriorate the current financial trajectory of incredible margins and growth.
  • While the stock could continue to rise as earnings climb, the valuation is starting to extrapolate too high-growth expectations and forgets the major risk from changing fashion trends.


E_Y_E/iStock Unreleased via Getty Images

Abercrombie & Fitch Co. (NYSE:ANF), the clothing manufacturer and retailer with the Abercrombie & Fitch and Hollister brands, has been the apparel sector’s undeniable star in the past couple of years. The company has been able to

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