To be honest with you, I usually stay away from companies in the clothing space. Fickle consumers, a lack of resistance during economic downturns, and significant competition that often leads to challenges, are not exactly a recipe for success in my book. But every so often, ICrude Value Insights offers you an investing service and community focused on oil and natural gas. We focus on cash flow and the companies that generate it, leading to value and growth prospects with real potential.Subscribers get to u ...

Core Points - Abercrombie & Fitch Co. will host its quarterly earnings conference call on August 27, 2025, at 8:30 a.m. ET, with a press release on second quarter results expected at 7:30 a.m. ET [1] - Participants must register to access the conference call by phone [2] - Additional information can be found on the company's corporate website, which may serve as the primary source for important updates [3] Company Overview - Abercrombie & Fitch Co. is a global, digitally led omnichannel specialty retailer focused on apparel and accessories for kids through millennials [4] - The company operates a family of brands, including Abercrombie and Hollister, with a commitment to quality and comfort, supporting customers in their personal journeys [5] - Abercrombie & Fitch Co. has approximately 790 stores across North America, Europe, Asia, and the Middle East, along with e-commerce platforms [5] Investor Relations - For investor inquiries, contact Mo Gupta at (614) 283-6751 or via email [6] - Media inquiries can be directed to Kate Wagner at (614) 283-6192 or via email [6] - A live webcast of the earnings call will be available on the corporate website, with a replay accessible for one year after the event [6]

Group 1 - Abercrombie & Fitch's stock closed at $95.89, reflecting a -2.82% change from the previous day, underperforming compared to the S&P 500's loss of 0.37% [1] - Over the last month, Abercrombie & Fitch's shares increased by 9.82%, outperforming the Retail-Wholesale sector's gain of 2.03% and the S&P 500's gain of 2.68% [1] Group 2 - The upcoming earnings disclosure is anticipated, with projected earnings per share (EPS) of $2.26, indicating a 9.6% decrease from the same quarter last year, while revenue is expected to be $1.18 billion, reflecting a 4.45% growth [2] - For the full year, analysts expect earnings of $10.2 per share and revenue of $5.19 billion, representing changes of -4.58% and +4.83% from the previous year, respectively [3] Group 3 - Recent changes to analyst estimates for Abercrombie & Fitch suggest a favorable outlook on the company's business health and profitability [4] - The Zacks Rank system indicates that estimate changes correlate with near-term stock prices, with Abercrombie & Fitch currently holding a Zacks Rank of 3 (Hold) [5][6] Group 4 - Abercrombie & Fitch is currently trading at a Forward P/E ratio of 9.67, which is a discount compared to the industry average Forward P/E of 17.87 [7] - The Retail - Apparel and Shoes industry, part of the Retail-Wholesale sector, has a Zacks Industry Rank of 206, placing it in the bottom 17% of over 250 industries [7][8]

Core Insights - Hollister Co. is partnering with Lollapalooza to present 88 Aftershows across 30 venues in Chicago from July 30 to August 3, 2025, featuring emerging artists Gigi Perez, Max McNown, and Wyatt Flores [3][4][5] Company Overview - Hollister Co. is a brand under Abercrombie & Fitch Co. (NYSE: ANF), known for its quality apparel, accessories, and fragrances, with over 500 stores worldwide and an online presence at HollisterCo.com [6] Event Details - The Aftershows will take place at iconic venues, including the House of Blues Chicago, and will feature unique experiences such as Hollister-designed spaces, free food from popular food trucks, and customized keepsakes [3][4] - The partnership aims to enhance the connection between artists and fans, reflecting Hollister's commitment to music and youth culture [4][5] Marketing Strategy - Hollister's involvement in Lollapalooza builds on its history with music, including previous events like in-store concerts and the Hollister Feel Good Fest, which featured performances across high schools nationwide [3][4] - The brand's Chief Marketing Officer emphasized the importance of music in connecting with customers and supporting emerging talent [4]

Group 1: Company Performance - Abercrombie & Fitch has seen a 19% increase in July, with a 6% rise on July 28, driven by a JPMorgan upgrade to "Overweight" and strong retail momentum [2] - In Q1, the company reported net sales of $1.1 billion, an 8% increase, and EPS of $1.59, surpassing the consensus of $1.36 [4] - The company has raised its full-year sales growth guidance to 3–6%, despite slightly reducing EPS forecasts due to tariff issues [4] Group 2: Financial Metrics - Abercrombie's stock appears undervalued, trading at a P/S of 1.0, P/E of 9.7, and P/FCF of 11.7, all significantly below S&P 500 averages [4] - The company's balance sheet shows a debt-to-equity ratio of 21.1% and a cash-to-assets ratio of 19.6%, indicating strong financial health [5] Group 3: Market Context - U.S. retail sales improved by 0.6% in May, three times the anticipated forecast, alongside a drop in jobless claims, indicating strength in the labor market [2] - Abercrombie has redefined itself for the digital age, connecting with Gen Z shoppers, which is crucial for its growth strategy [4] Group 4: Challenges - Despite strong growth, Abercrombie's profitability lags behind the broader market, with an operating margin of 14.2% compared to 18.3% for the S&P 500 [6] - The stock has shown vulnerability during market downturns, with significant declines of 70% during the 2022 inflation crisis and 83% in the 2008 financial meltdown [6] Group 5: Investment Opportunity - Abercrombie presents a rare opportunity with strong revenue growth, attractive valuation multiples, and a robust balance sheet, especially if consumer spending remains steady [8] - A diversified investment strategy may provide greater stability, as seen in the performance of the Trefis High Quality portfolio, which has outperformed the S&P 500 [3][8]

Company Performance - Abercrombie & Fitch (ANF) closed at $93.86, reflecting a decrease of -1.26% from the previous trading session, underperforming the S&P 500's daily gain of 0.07% [1] - Prior to the latest trading day, Abercrombie & Fitch shares had increased by 19.6%, significantly outperforming the Retail-Wholesale sector's gain of 5.27% and the S&P 500's gain of 5.71% [1] Earnings Forecast - The upcoming earnings release is anticipated to show an EPS of $2.25, indicating a 10% decline compared to the same quarter last year [2] - Revenue is expected to reach $1.18 billion, representing a 4.12% increase from the year-ago quarter [2] Annual Estimates - For the annual period, the Zacks Consensus Estimates predict earnings of $10.17 per share and revenue of $5.18 billion, reflecting changes of -4.86% and +4.69% respectively from the previous year [3] - Recent changes in analyst estimates are crucial as they indicate the latest business trends and analysts' outlook on the company's health and profitability [3] Valuation Metrics - Abercrombie & Fitch has a Forward P/E ratio of 9.34, which is a discount compared to the industry average Forward P/E of 18.14 [6] - The Retail - Apparel and Shoes industry, part of the Retail-Wholesale sector, currently holds a Zacks Industry Rank of 212, placing it in the bottom 15% of over 250 industries [6] Zacks Rank System - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), has a historical performance of 1 stocks returning an average annual gain of +25% since 1988 [5] - Abercrombie & Fitch currently holds a Zacks Rank of 4 (Sell), with the consensus EPS estimate remaining unchanged over the last 30 days [5]

Core Insights - The global apparel industry is highly competitive, with Levi Strauss & Co. (LEVI) and Abercrombie & Fitch Co. (ANF) as notable players leveraging brand heritage and strategic transformation to capture market share [1][2] Company Overview - Levi has a legacy of over 170 years, primarily in denim, while Abercrombie has reinvented itself to appeal to young consumers [2] - Levi operates in casualwear and denim, selling through Direct-to-Consumer (DTC) and wholesale channels, while Abercrombie focuses on specialty retail with its Abercrombie and Hollister brands [3] Strategic Approaches - Levi is transitioning into a DTC-first organization, enhancing its digital experience and expanding its product portfolio beyond jeans [6][7] - Abercrombie emphasizes agility and trend responsiveness, utilizing a "Read & React" model to quickly adapt to market trends [11][13] Market Performance - Levi's stock rose 21.7% in six months, while Abercrombie's stock fell 28.1%, indicating investor preference for Levi's strategy [8][20] - Levi's forward P/E ratio is 15.65X, reflecting strong market confidence, while Abercrombie's is 8.90X, indicating investor caution [18][19] Financial Estimates - Levi's fiscal 2025 sales estimate implies a decline of 4.04%, but EPS indicates growth of 2.4% [16] - Abercrombie's fiscal 2025 EPS estimate implies a decline of 4.9%, while sales are expected to grow by 4.7% [17] Conclusion - Levi is positioned as a stronger long-term investment due to its global scale, brand strength, and strategic transformation into a diversified lifestyle brand [23]

Group 1 - Abercrombie & Fitch's stock increased by 1.38% to $88.24, outperforming the S&P 500's gain of 0.28% and the Dow's gain of 0.43% [1] - The stock has risen by 10.16% over the past month, leading the Retail-Wholesale sector's gain of 0.87% and the S&P 500's gain of 4.37% [1] Group 2 - The company is expected to report an EPS of $2.25, reflecting a 10% decrease from the same quarter last year, with quarterly revenue forecasted at $1.18 billion, up 4.12% year-over-year [2] - For the fiscal year, earnings are projected at $10.17 per share and revenue at $5.18 billion, indicating changes of -4.86% and +4.69% respectively from the previous year [3] Group 3 - Recent revisions to analyst forecasts for Abercrombie & Fitch are important as they indicate changing business trends, with upward revisions suggesting positive sentiment towards the company's operations [4] - The Zacks Rank system, which evaluates estimate revisions, currently ranks Abercrombie & Fitch as 5 (Strong Sell), with a 0.05% decrease in the consensus EPS estimate over the past month [6] Group 4 - Abercrombie & Fitch has a Forward P/E ratio of 8.56, which is a discount compared to the industry average Forward P/E of 17.54 [7] - The Retail - Apparel and Shoes industry, part of the Retail-Wholesale sector, has a Zacks Industry Rank of 208, placing it in the bottom 16% of over 250 industries [7]

Company Overview - Abercrombie & Fitch operates as an omnichannel retailer across multiple regions including the Americas, Europe, the Middle East, Africa, and the Asia-Pacific, offering a variety of apparel, personal care products, and accessories under several brands [2]. Financial Performance - The company has lowered its full-year EPS guidance to a range of $9.50–$10.50 from a previous range of $10.40–$11.40, primarily due to anticipated tariff expenses of $50 million on imports [3]. - In Q1 FY 2025, net sales grew by 8% to $1.1 billion, exceeding expectations by 7%, but adjusted EPS of $1.59 fell short of prior targets [3]. - Analysts have revised their profit forecasts downward, with the Zacks Consensus Estimate for the current year decreasing from $11.06 to $10.17 and next year's estimate dropping from $11.68 to $10.57 [3]. Market Position - Abercrombie & Fitch is currently rated as Zacks Rank 5 (Strong Sell) due to the negative outlook and multiple analysts cutting their estimates [3]. - The Retail – Apparel and Shoes industry is positioned in the Bottom 15% of the Zacks Industry Rank, indicating overall challenges within the sector [4]. - Despite the challenges, there are a few companies within the industry that are performing well, such as Stitch Fix and Urban Outfitters, which hold a Zacks Rank of 1 (Strong Buy) [4].

This is my first coverage of Abercrombie & Fitch Co. (NYSE: ANF ). In the article, I will describe the company's business and my opinion on why it is a strong buy.I first entered investing in 2016 as an individual value investor. In 2022, I established the investment firm Libra Capital. I mostly write articles as part of my deep research into a company before I make an investment, whether long or short. For me, a ''hold'' article means don't touch the stock; neither is it a buy nor a short, because I believ ...