ANF Stock Fair Value – ABERCROMBIE & FITCH Reports 16.2% Revenue Increase for Q2 2023
August 27, 2023
☀️Earnings Overview
ABERCROMBIE & FITCH ($NYSE:ANF) reported total revenue of USD 935.3 million in the second quarter of 2023 ending July 31, a 16.2% increase from the corresponding period in FY2024. In comparison to the prior year, net income for Q2 was USD 56.9 million, compared to a net loss of -16.8 million.
Analysis – ANF Stock Fair Value
GoodWhale has examined the fundamentals of ABERCROMBIE & FITCH and calculated its fair value. Using our proprietary Valuation Line, the fair value of the ABERCROMBIE & FITCH share is estimated to be around $28.4. However, the current stock price stands at $50.5, meaning that it is currently overvalued by 77.7%. This could present investors with a risky investment opportunity, as there is a large discrepancy between what the stock is priced at and its actual value. Investors should further research the company and its fundamentals in order to determine whether or not they believe the stock is a safe investment. More…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for ANF. More…
| Total Revenues | Net Income | Net Margin |
| 3.85k | 109.58 | 3.0% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for ANF. More…
| Operations | Investing | Financing |
| 473.72 | -178.84 | -43.25 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for ANF. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 2.8k | 2.02k | 15.35 |
Key Ratios Snapshot
Some of the financial key ratios for ANF are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 6.0% | 193.0% | 6.0% |
| FCF Margin | ROE | ROA |
| 7.2% | 19.7% | 5.2% |
Peers
Competition between Abercrombie & Fitch Co and its competitors, Gap Inc, Children’s Place Inc, and Ross Stores Inc, is fierce. All four companies specialize in retail apparel and strive to offer their customers the best products and services. As a result, each company constantly works to outpace the others in terms of product offerings, store locations, and customer service.
– Gap Inc ($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 may find ABERCROMBIE & FITCH an attractive opportunity to consider. The company reported impressive financial results for the second quarter ended July 31, 2023, with total revenues up 16.2% year-over-year to USD 935.3 million and net income of USD 56.9 million compared to a net loss of -16.8 million in the prior year. This is a clear indication of the strength of the company’s operations, providing a good opportunity for investors looking for long-term growth potential.
