Back to top

Image: Bigstock

If You Invested $1000 in Abercrombie & Fitch a Decade Ago, This is How Much It'd Be Worth Now

Read MoreHide Full Article

For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.

Another thing that can drive investing is the fear of missing out, or FOMO. This particularly applies to tech giants and 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 fourth 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

While anyone can invest, building a lucrative investment portfolio takes research, patience, and a little bit of risk. If you had invested in Abercrombie & Fitch ten years ago, you're probably feeling pretty good about your investment today.

According to our calculations, a $1000 investment made in May 2014 would be worth $3,925.73, or a 292.57% gain, as of May 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 177.18% and gold's return of 73.03% over the same time frame.

Going forward, analysts are expecting more upside for ANF.

Abercrombie’s shares have increased and outperformed the industry in the past six months. The stock's bullish run on the bourses can be attributable to continued momentum across its both brands, which bolstered sales in fourth-quarter fiscal 2023. The company has been witnessing strong sales growth during for each of its brands. Abercrombie witnessed favorable margin trends mainly driven by reduced freight costs and improved average unit retail. For the first quarter of fiscal 2024, net sales are projected to be up low double-digits from $836 million reported in the year-ago period. However, Abercrombie has been witnessing elevated operating costs on higher technology expense and incentive-based compensation. We expect an increase of 8% in adjusted operating expenses for the fiscal first quarter and 5.8% for fiscal 2024.

The stock has jumped 26.36% over the past four weeks. Additionally, no earnings estimate has gone lower in the past two months, compared to 4 higher, for fiscal 2024; the consensus estimate has moved up as well.

See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Abercrombie & Fitch Company (ANF) - free report >>

Published in