ABERCROMBIE & FITCH Reports Record Q2 Earnings, With 16.2% Year-Over-Year Increase in Revenue

☀️Earnings Overview

ABERCROMBIE ($NYSE:ANF): On August 24 2023, A&F revealed their FY2024 Q2 earnings results, which registered total revenue of USD 935.3 million, demonstrating a year-over-year growth of 16.2%. Net income was reported at USD 56.9 million, a dramatic change from the Q2 of the previous year’s net loss of -16.8 million.

Analysis

In GoodWhale’s analysis of ABERCROMBIE & FITCH’s financials, the company is classified as an ‘elephant’, meaning that it has sufficient assets after liabilities have been deducted. These findings make the company an attractive option for investors who are interested in low-risk investments such as those with secure cash flows and stable debt management. From GoodWhale’s Star Chart, ABERCROMBIE & FITCH has a high health score of 8/10, indicating that the company is in a great financial position and has the capability to ride out any economic crisis without the risk of bankruptcy. Furthermore, it is strong in terms of asset and profitability but weak in terms of dividend and growth. For investors looking for a reliable long-term investment, ABERCROMBIE & FITCH is a good choice. More…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for ANF. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for ANF. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for ANF. More…

Key Ratios Snapshot

Some of the financial key ratios for ANF are shown below. More…

Peers

Competition between Abercrombie & Fitch Co and its competitors, Gap Inc, Children’s Place Inc, and Ross Stores Inc, is fierce. All four companies specialize in retail apparel and strive to offer their customers the best products and services. As a result, each company constantly works to outpace the others in terms of product offerings, store locations, and customer service.

– Gap Inc ($NYSE:GPS)

Gap Inc is a leading apparel retail company based in San Francisco, California. The company offers apparel, accessories, and personal care products for men, women, and children through its brands, which include Gap, Old Navy, Banana Republic, Athleta, and Intermix. As of 2022, Gap Inc. has a market capitalization of 4.4 billion dollars and a return on equity of -0.62%. This is lower than the industry average for apparel retail companies, indicating that the company has not been able to generate a satisfactory return on its equity investments. However, the company’s market capitalization of 4.4 billion dollars suggests that investors are still confident in the company’s future prospects.

– Children’s Place Inc ($NASDAQ:PLCE)

Children’s Place Inc is a popular children’s apparel retailer with a market cap of 461.48M as of 2022. The company offers a variety of clothing, accessories, and footwear for kids ranging from newborn to age 14. They have an impressive Return on Equity of 41.18%, which is a measure of the company’s ability to generate income from shareholders’ investments. This is a strong indicator of the company’s financial health and its ability to make efficient use of capital. The Children’s Place Inc is well-positioned to continue to provide great products and services to its customers in the years to come.

– Ross Stores Inc ($NASDAQ:ROST)

Ross Stores Inc is a leading off-price retailer in the United States. It operates 1,400 stores in 39 states, the District of Columbia, and Guam. The company offers apparel, accessories, footwear, and home fashions at discounts of 20% to 60% below department and specialty store regular prices. As of 2022, Ross Stores Inc has a market capitalization of 39.77B and a Return on Equity (ROE) of 29.12%. This reflects the company’s strong financial performance and ability to generate significant returns for its shareholders. Ross Stores has consistently recorded positive earnings growth for over 10 years and is well positioned for future growth.

Summary

Investors in Abercrombie & Fitch Co. (ANF) have good news to cheer about as the company released its Q2 FY2024 earnings report on August 24, 2023. Total revenue rose to USD 935.3 million, a 16.2% year-over-year increase. Net income was reported at USD 56.9 million, a turnaround from a net loss of -16.8 million in the same quarter of the previous year. This positive financial performance signals good prospects for investors, and those considering investments in ANF should take note of its strong earnings growth and ability to generate profits.