Abercrombie & Fitch: I’m Not Buying The Q3 Bounce


  • Abercrombie & Fitch Co. recently reported Q3 earnings that exceeded cellar-dwelling expectations on both the top and bottom lines.
  • However, the company saw many key metrics fall significantly from last year and still forecasts a drop in revenue to come.
  • While ANF exceeded the low bar set in front of them in Q3, significant structural challenges remain – I rate this stock a “Hold” with a $21 price target.

Abercrombie & Fitch Clothing Store. Abercrombie & Fitch is a retailer that focuses on casual wear for young consumers.


Introduction & Purpose

Abercrombie & Fitch Co. (NYSE:ANF) recently reported Q3 earnings that beat low expectations and shocked the market, sending the stock up ~20% on the release day. The company’s revenue declined materially from the prior year, but ANF improved its guidance


ANF Q3 Deck


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Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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