Abercrombie & Fitch: Q1 Earnings Miss And Guidance Slash Means Pain Ahead


  • ANF reported Q1 earnings that missed badly on the bottom line and showcased concerning forward trends.
  • Inventory and cost of goods rose significantly above projections.
  • ANF also changed guidance and said they don’t see a meaningful increase from 2021 revenues.
  • The company did not adequately prepare for the supply chain crunch and fooled investors with such a drastically quick guidance reduction.
  • I was wrong previously. I now have a price target for ANF of $23 and a “Hold” rating with an 18-month view.

Indianapolis - October 2015: Abercrombie & Fitch Clothing

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Purpose & Introduction

While Abercrombie & Fitch Co. (NYSE:ANF) has well-known brands, small margins and reactive management will keep the stock from soaring to its full potential. I now forecast a share price of $23 over

Updated Guidance

ANF Q1 Investor Deck


Author WACC


Author Income Statement Forecast


Author EV Calculation

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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