Core Viewpoint - Abercrombie & Fitch is anticipated to report a year-over-year decline in earnings despite an increase in revenues, which could significantly influence its stock price in the near term [1][2]. Earnings Expectations - The upcoming earnings report is expected to be released on May 28, 2025, with a consensus estimate of $1.40 per share, reflecting a year-over-year decrease of 34.6% [3]. - Revenues are projected to reach $1.07 billion, indicating a 5.3% increase compared to the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has been revised down by 0.22% over the last 30 days, suggesting a collective reassessment by analysts regarding the company's earnings outlook [4]. - The Most Accurate Estimate is lower than the Zacks Consensus Estimate, leading to an Earnings ESP of -4.22%, indicating a bearish sentiment among analysts [10][11]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive or negative reading can predict the likelihood of actual earnings deviating from consensus estimates, with a strong predictive power for positive readings [7][8]. - Stocks with a positive Earnings ESP and a Zacks Rank of 1, 2, or 3 have historically shown a nearly 70% chance of delivering a positive surprise [8]. Historical Performance - In the last reported quarter, Abercrombie exceeded the expected earnings of $3.48 per share by posting $3.57, resulting in a surprise of +2.59% [12]. - Over the past four quarters, the company has consistently beaten consensus EPS estimates [13]. Conclusion - Despite the potential for an earnings beat, various factors can influence stock movement, and the current indicators suggest that Abercrombie may not be a strong candidate for an earnings surprise [14][16].

Group 1 - Abercrombie & Fitch Co. will host its quarterly earnings conference call on May 28, 2025, at 8:30 a.m. ET, with a press release on first quarter results expected at 7:30 a.m. ET [1] - Participants must register to obtain a dial-in phone number and access code for the conference call [2] - A live webcast of the call will be available on the company's investor relations website, with a replay accessible shortly after the call ends [7] Group 2 - Abercrombie & Fitch Co. is a global, digitally led omnichannel specialty retailer of apparel and accessories, targeting kids through millennials [4] - The company operates approximately 790 stores across North America, Europe, Asia, and the Middle East, along with several e-commerce sites [5] - The family of brands includes Abercrombie and Hollister, focusing on quality and comfort for their customers [5]

Group 1 - Abercrombie & Fitch (ANF) closed at $73.07, reflecting a -0.95% change from the previous day, underperforming compared to the S&P 500's 2.03% gain [1] - Over the past month, Abercrombie & Fitch shares have decreased by 2.58%, which is a smaller decline than the Retail-Wholesale sector's loss of 2.36% and the S&P 500's loss of 5.07% [1] Group 2 - Abercrombie & Fitch is projected to report earnings of $1.48 per share, indicating a year-over-year decline of 30.84%, with anticipated revenue of $1.07 billion, representing a 5.28% increase from the same quarter last year [2] - For the full year, analysts expect earnings of $11.01 per share and revenue of $5.17 billion, reflecting changes of +2.99% and +4.4% respectively from the previous year [3] Group 3 - Recent shifts in analyst projections for Abercrombie & Fitch should be monitored, as upward revisions indicate positive sentiment regarding the company's business operations and profit generation capabilities [4] - Estimate revisions are correlated with near-term share price momentum, and the Zacks Rank system, which evaluates these changes, provides an operational rating system [5] Group 4 - The Zacks Rank system ranges from 1 (Strong Buy) to 5 (Strong Sell), with 1 stocks historically delivering an average annual return of +25% since 1988; Abercrombie & Fitch currently holds a Zacks Rank of 3 (Hold) [6] - The Forward P/E ratio for Abercrombie & Fitch is 6.7, indicating a discount compared to its industry's Forward P/E of 12.91 [7] Group 5 - The Retail - Apparel and Shoes industry, part of the Retail-Wholesale sector, has a Zacks Industry Rank of 139, placing it in the bottom 44% of over 250 industries [7] - The Zacks Industry Rank assesses the strength of industry groups by calculating the average Zacks Rank of individual stocks, with top-rated industries outperforming the bottom half by a factor of 2 to 1 [8]

Core Viewpoint - Abercrombie & Fitch Company is experiencing a decline in stock performance due to slowed sales growth, increased operating and freight costs, and potential impacts from U.S. tariffs on imports, despite its attractive valuation compared to industry peers [1][19][27] Financial Performance - The company's forward 12-month price-to-earnings (P/E) ratio is 6.53X, significantly lower than the industry average of 13.81X, indicating a potential value opportunity [1] - Abercrombie's price-to-sales (P/S) ratio stands at 0.68X, below the industry's 1.28X, further supporting its value proposition [2] - Year-to-date, Abercrombie's shares have declined by 51.3%, underperforming the broader industry decline of 29.4% and the S&P 500's fall of 10.5% [6] - The current share price of $72.77 reflects a 63.1% discount from its 52-week high of $196.99 [8] Sales and Growth Outlook - Net sales increased by 9% in Q4 of fiscal 2024, a slowdown from 21% growth in the prior year, indicating a transition from a high-growth phase [14] - For fiscal 2025, the company forecasts sales growth of 3-5%, a significant decrease from the 16% gain in fiscal 2024 [15] - The earnings guidance for Q1 of fiscal 2025 is projected at $1.25-$1.45, down from $2.14 in the same quarter last year [18] Margin and Cost Pressures - Gross margin in Q4 of fiscal 2024 declined by 140 basis points year-over-year to 61.5%, primarily due to rising freight costs [16] - The company anticipates continued pressure on margins in the first half of fiscal 2025, with an expected operating margin of 14-15% for the year [17] Strategic Initiatives - Abercrombie is focusing on product innovation and quality to maintain brand relevance and market momentum [24] - The company is investing in digital capabilities and modernizing store designs to enhance customer experience and drive foot traffic [25][26] - A strategic shift towards smaller, digitally integrated store formats reflects a realignment with consumer preferences [26] Investor Sentiment - Concerns over tariff-related impacts and declining sales growth have dampened investor sentiment, leading to downward revisions in EPS estimates for fiscal 2025 and 2026 [19][20] - Despite near-term challenges, the stock's undervaluation relative to peers and long-term growth potential present a buying opportunity for investors [27][28]

Market Sentiment - Fund managers are currently exhibiting the most negative sentiment regarding economic prospects in three decades, with a significant shift from being 17% overweight in U.S. stocks in February to a net 36% underweight in April, representing a 50% change [3][7]. - The current cash allocation among fund managers stands at about 5% of assets, which is not viewed as a sign of fear but rather a typical position for many investors [5][6]. Retail Sector Insights - The State Street S&P retail ETF has declined approximately 16% since January, which is double the decline of the total S&P 500, indicating heightened pessimism in the retail sector [9]. - Retailers are encouraged to proactively address tariff-related issues and supply chain challenges, particularly as many products are sourced from China, which is currently facing tariff disputes [10][11]. Abercrombie & Fitch Analysis - Abercrombie & Fitch has shown growth in earnings and sales, with a 14% year-on-year increase in comparable sales, yet its stock trades at about seven times earnings and cash flow, suggesting it may be undervalued [14][15]. - The company has a significant share repurchase authorization of $1.3 billion against a market cap of $3.5 billion, indicating management's confidence in the stock's value [15][16]. - Concerns exist regarding the company's ability to maintain relevance in fashion trends and whether it can sustain its buyback strategy amid potential economic downturns [16][18]. Economic Outlook - Historical trends suggest that deploying capital during periods of pessimism can yield positive long-term results, as markets tend to recover over time [9][10]. - The current economic climate, characterized by tariff disputes and supply chain issues, may present both challenges and opportunities for long-term investors [10][11].

Group 1 - The focus is on small cap companies in the US, Canadian, and European markets, emphasizing the importance of identifying mispriced securities [1] - The investment philosophy is based on understanding the drivers behind a company's financials, often revealed through a DCF model valuation [1] - The methodology allows for flexibility beyond traditional investment categories, considering all prospects of a stock to assess risk-to-reward [1] Group 2 - There is no current stock, option, or similar derivative position in any mentioned companies, but there may be plans to initiate a long position in ANF within the next 72 hours [2] - The article expresses personal opinions and is not influenced by compensation from any company mentioned [2] - The author has no business relationship with any of the companies discussed in the article [2]

Core Viewpoint - The former CEO of Abercrombie & Fitch, Mike Jeffries, is deemed unfit to stand trial for sex trafficking charges due to severe cognitive impairments, including Alzheimer's disease and Lewy body dementia [1][4][6]. Group 1: Legal Proceedings - Prosecutors and defense lawyers are advocating for Jeffries to be placed in federal custody for treatment that may allow his criminal case to proceed [2]. - Jeffries has pleaded not guilty to federal sex trafficking and interstate prostitution charges and was released on a $10 million bond [2][3]. - A total of 15 men have accused Jeffries and his associates of coercing them into drug-fueled sex parties under the pretense of modeling opportunities [3]. Group 2: Health Condition - Medical evaluations indicate that Jeffries' cognitive issues are "progressive and incurable," significantly impairing his understanding of the charges against him [4][6]. - Experts assert that Jeffries will not regain competency and cannot be restored to competency in the future, further complicating the legal proceedings [4][7]. Group 3: Background Information - Jeffries led Abercrombie & Fitch from 1992 to 2014, transforming it into a prominent fashion retailer [9].

Core Viewpoint - Abercrombie & Fitch has experienced a decline of approximately 15.9% in share price over the past month, underperforming the S&P 500, raising questions about the potential for a breakout or continued negative trend leading up to the next earnings release [1] Group 1: Earnings and Estimates - Recent estimates for Abercrombie have trended downward, with the consensus estimate shifting by -26.41% over the past month [2] - The stock has a Zacks Rank of 3 (Hold), indicating expectations for an in-line return in the coming months [4] Group 2: VGM Scores - Abercrombie has a strong Growth Score of A, but is significantly lagging in Momentum Score with an F, while also receiving an A for Value, placing it in the top quintile for this investment strategy [3] - The overall aggregate VGM Score for Abercrombie is A, which is relevant for investors not focused on a single strategy [3]

Group 1 - Proactive provides fast, accessible, informative, and actionable business and finance news content to a global investment audience [2] - The company focuses on medium and small-cap markets while also covering blue-chip companies, commodities, and broader investment stories [3] - Proactive's news team delivers insights across various sectors including biotech, pharma, mining, natural resources, battery metals, oil and gas, crypto, and emerging technologies [3] Group 2 - Proactive is committed to adopting technology to enhance workflows and improve content production [4] - The company utilizes automation and software tools, including generative AI, while ensuring all content is edited and authored by humans [5]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended February 1, 2025 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-12107 Abercrombie & Fitch Co. (Exact name of registrant as specified in its charter) | Delaware | | | 31-1469076 | | ...