3 Reasons Investors Love Abercrombie and Fitch (ANF)

Since July 2025, Abercrombie and Fitch has been in a holding pattern, posting a small return of 4.4% while floating around $99.93.

Is now the time to buy ANF? Or does the price properly account for its business quality and fundamentals? Find out in our full research report, it’s free.

Why Are We Positive On Abercrombie and Fitch?

Founded as an outdoor and sporting brand, Abercrombie & Fitch (NYSE:ANF) evolved to become a specialty retailer that sells its own brand of fashionable clothing to young adults.

1. Surging Same-Store Sales Show Increasing Demand

Same-store sales is an industry measure of whether revenue is growing at existing stores, and it is driven by customer visits (often called traffic) and the average spending per customer (ticket).

Abercrombie and Fitch has been one of the most successful retailers over the last two years thanks to skyrocketing demand within its existing locations. On average, the company has posted exceptional year-on-year same-store sales growth of 11.9%.

2. Elite Gross Margin Powers Best-In-Class Business Model

Gross profit margins are an important measure of a retailer’s pricing power, product differentiation, and negotiating leverage.

Abercrombie and Fitch has best-in-class unit economics for a retailer, enabling it to invest in areas such as marketing and talent. As you can see below, it averaged an elite 63.3% gross margin over the last two years. That means Abercrombie and Fitch only paid its suppliers $36.66 for every $100 in revenue.

3. Outstanding Long-Term EPS Growth

Analyzing the long-term change in earnings per share (EPS) shows whether a company's incremental sales were profitable – for example, revenue could be inflated through excessive spending on advertising and promotions.

Abercrombie and Fitch’s EPS grew at an astounding 189% compounded annual growth rate over the last three years, higher than its 12.3% annualized revenue growth. This tells us the company became more profitable on a per-share basis as it expanded.

Final Judgment

These are just a few reasons why we think Abercrombie and Fitch is a great business, but at $99.93 per share (or 9.9× forward P/E), is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.

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