How much a stock's price changes over time is important for most investors, since price performance can both impact your investment portfolio and help you compare investment results across sectors and industries.
Another factor that can influence investors is FOMO, or the fear of missing out, especially with tech giants and popular consumer-facing stocks.
What if you'd invested in Abercrombie & Fitch (ANF) ten years ago? It may not have been easy to hold on to ANF for all that time, but if you did, how much would your investment be worth today?
Abercrombie & Fitch's Business In-Depth
With that in mind, let's take a look at Abercrombie & Fitch's main business drivers.
Abercrombie & Fitch Co. operates as a specialty retailer of premium, high-quality casual apparel for men, women, and kids through a network of approximately 773 stores across North America, Europe, Asia and the Middle East, as well as the e-commerce sites www.abercrombie.com, www.abercrombiekids.com, www.hollisterco.com, www.gillyhicks.com and www.socialtourist.com.
Abercrombie's product portfolio includes knit and woven shirts, graphic T-shirts, fleece, jeans and woven pants, shorts, sweaters, outerwear, personal care products and accessories for men, women and kids, under the Abercrombie & Fitch, abercrombie kids and Hollister brands.
Additionally, the company sells inner wear, personal care products, sleepwear and at-home products for girls through direct-to-consumer operations and Hollister stores under the Gilly Hicks brand. It also sells products through its e-commerce platform.
In the fiscal second quarter, the company reorganized its structure. It will now report under three geographical segments, namely Americas; Europe, the Middle East and Africa (EMEA), and Asia-Pacific (APAC). All prior periods presented have been altered to conform to this reclassification. Brand-wise, Abercrombie reports in two segments - Abercrombie and Hollister.
Abercrombie (51.4% of the net sales in the fiscal third quarter) includes the Abercrombie & Fitch and abercrombie kids brands. Abercrombie & Fitch, targeted at the college-going crowd, is positioned as a luxury lifestyle concept that uses the finest materials to create high-quality casual wear. abercrombie kids, themed as "classic cool", is aimed at pre-teens and is the children's version of Abercrombie & Fitch.
Hollister (48.6%) is based on a South California theme, and targets youth in their late teens. Stores under this brand also offer intimate products of the Gilly Hicks brand.
Bottom Line
While anyone can invest, building a lucrative investment portfolio takes research, patience, and a little bit of risk. If you had invested in Abercrombie & Fitch ten years ago, you're probably feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in January 2015 would be worth $5,409.28, or a 440.93% gain, as of January 7, 2025. Investors should keep in mind that this return excludes dividends but includes price appreciation.
Compare this to the S&P 500's rally of 198.38% and gold's return of 108.87% over the same time frame.
Looking ahead, analysts are expecting more upside for ANF.
Abercrombie’s shares have outperformed the industry in the year-to-date period. The stock's bullish run on the bourses can be attributable to continued momentum across its brands and regions, which bolstered sales in third-quarter fiscal 2024. The company witnessed strong sales growth for each of its brands and regions during the reported quarter. ANF reported sturdy third-quarter fiscal 2024 results. Earnings were supported by robust revenue growth, and enhanced gross and operating margins. Management anticipates net sales for fiscal 2024 to increase 14-15% year over year from $4.3 billion. For fourth-quarter fiscal 2024, net sales are projected to grow 5-7% year over year and versus our estimate of a 5.9% rise. However, Abercrombie has been witnessing elevated operating costs. Also, adverse currency fluctuations remain concerns.
Shares have gained 11.53% over the past four weeks and there have been 6 higher earnings estimate revisions for fiscal 2025 compared to none lower. The consensus estimate has moved up as well.5 Stocks Set to Double
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Abercrombie & Fitch Company (ANF) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
