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Here's How Much a $1000 Investment in Abercrombie & Fitch Made 10 Years Ago Would Be Worth Today
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How much a stock's price changes over time is a significant driver for most investors. Not only can price performance impact your portfolio, but it can help you compare investment results across sectors and industries as well.
The fear of missing out, or FOMO, also plays a factor in investing, especially with particular tech giants, as well as popular consumer-facing stocks.
What if you'd invested in Abercrombie & Fitch (ANF - Free Report) 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 759 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 (49.5% of the net sales in the 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 (50.5%) 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
Anyone can invest, but building a successful investment portfolio takes a combination of a few things: research, patience, and a little bit of risk. So, if you had invested in Abercrombie & Fitch a decade ago, you're probably feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in January 2014 would be worth $2,903.51, or a 190.35% gain, as of January 24, 2024. Investors should keep in mind that this return excludes dividends but includes price appreciation.
Compare this to the S&P 500's rally of 166.05% and gold's return of 57.69% over the same time frame.
Analysts are forecasting more upside for ANF too.
Abercrombie’s shares outperformed the industry in the past three months. The stock's bullish run on the bourses can be attributable to continued momentum in the Abercrombie brand and sequential improvement in the Hollister brand. This led to the third consecutive quarter of earnings beat in third-quarter fiscal 2023. Lower freight costs and robust AUR growth aided margins. As a result, ANF expects year-over-year sales growth of 12-14% for fiscal 2023 versus our estimate of 12.7% growth. The company noted that its efforts to improve the brand positioning of the Hollister brand have been paying off. Also, store optimization and the Always Forward plan bode well. However, Abercrombie has been witnessing elevated operating costs from higher technology expenses and incentive-based compensation. Also, inflationary pressures are concerning.
Over the past four weeks, shares have rallied 12.07%, and there have been 6 higher earnings estimate revisions in the past two months for fiscal 2024 compared to none lower. The consensus estimate has moved up as well.
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Here's How Much a $1000 Investment in Abercrombie & Fitch Made 10 Years Ago Would Be Worth Today
How much a stock's price changes over time is a significant driver for most investors. Not only can price performance impact your portfolio, but it can help you compare investment results across sectors and industries as well.
The fear of missing out, or FOMO, also plays a factor in investing, especially with particular tech giants, as well as popular consumer-facing stocks.
What if you'd invested in Abercrombie & Fitch (ANF - Free Report) 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 759 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 (49.5% of the net sales in the 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 (50.5%) 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
Anyone can invest, but building a successful investment portfolio takes a combination of a few things: research, patience, and a little bit of risk. So, if you had invested in Abercrombie & Fitch a decade ago, you're probably feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in January 2014 would be worth $2,903.51, or a 190.35% gain, as of January 24, 2024. Investors should keep in mind that this return excludes dividends but includes price appreciation.
Compare this to the S&P 500's rally of 166.05% and gold's return of 57.69% over the same time frame.
Analysts are forecasting more upside for ANF too.
Abercrombie’s shares outperformed the industry in the past three months. The stock's bullish run on the bourses can be attributable to continued momentum in the Abercrombie brand and sequential improvement in the Hollister brand. This led to the third consecutive quarter of earnings beat in third-quarter fiscal 2023. Lower freight costs and robust AUR growth aided margins. As a result, ANF expects year-over-year sales growth of 12-14% for fiscal 2023 versus our estimate of 12.7% growth. The company noted that its efforts to improve the brand positioning of the Hollister brand have been paying off. Also, store optimization and the Always Forward plan bode well. However, Abercrombie has been witnessing elevated operating costs from higher technology expenses and incentive-based compensation. Also, inflationary pressures are concerning.
Over the past four weeks, shares have rallied 12.07%, and there have been 6 higher earnings estimate revisions in the past two months for fiscal 2024 compared to none lower. The consensus estimate has moved up as well.