Abercrombie & Fitch (ANF) Falls More Steeply Than Broader Market: What Investors Need to Know

Core Viewpoint - Abercrombie & Fitch is experiencing a significant decline in stock performance, with a notable upcoming earnings release that is expected to show positive growth in earnings and revenue compared to the previous year [1][2][3]. Company Performance - The latest market close for Abercrombie & Fitch was $123.42, reflecting a -0.59% change from the previous day, which is worse than the S&P 500's loss of 0.29% [1]. - Over the past month, Abercrombie & Fitch shares have decreased by 20.08%, underperforming the Retail-Wholesale sector, which gained 3.53%, and the S&P 500, which gained 2.52% [1]. Earnings Estimates - The upcoming earnings per share (EPS) for Abercrombie & Fitch is projected at $3.51, indicating an 18.18% increase year-over-year [2]. - Quarterly revenue is expected to reach $1.56 billion, representing a 7.7% increase from the same quarter last year [2]. - For the full year, earnings are projected at $10.64 per share and revenue at $4.93 billion, showing increases of +69.43% and +15.13% respectively from the previous year [3]. Analyst Sentiment - Recent changes to analyst estimates for Abercrombie & Fitch suggest a positive outlook on the company's business operations and profit generation capabilities [4]. - The Zacks Rank system currently rates Abercrombie & Fitch as 1 (Strong Buy), reflecting analysts' optimism [6]. Valuation Metrics - Abercrombie & Fitch is trading at a Forward P/E ratio of 11.67, which is lower than the industry average Forward P/E of 16.57 [7]. - The Retail - Apparel and Shoes industry, to which Abercrombie & Fitch belongs, has a Zacks Industry Rank of 73, placing it in the top 30% of over 250 industries [7].