Abercrombie & Fitch is controlling its promotions, which are fewer than last year, and has recorded a double-digit increase in its average selling price (A.U.R.) since 2019. Customer buy-in and effective stock management are the main drivers of this growth. Each quarter, the company aims to keep A.U.R. stable, by adapting to consumer expectations. The CEO stresses that investors expect the company to continue to deliver solid results. Abercrombie has spent years transforming its operating model and explaining these changes to investors, which is reflected in the share price increase. The company remains close to its customers, reacts quickly to market trends and maintains strict financial discipline. In terms of partnerships, Abercrombie has expanded its product range through its collaboration with the NFL, which began three years ago. This initiative, which started small, now includes a variety of products such as outerwear and hats. Hollister has also launched a university collection, contributing to a strong back-to-school performance. Abercrombie plans to open around 120 new experiences this year, twice as many as last year, with global expansion for both the Abercrombie and Hollister brands. Contrary to some reports, the company has not left Hong Kong and maintains several shops there, recording net growth of 3% and comparable growth of 21% in the APEC region this year. The company is seeing strong demand for the autumn season, with solid sales of tops, bottoms and dresses, as well as a good performance from the bridal boutique and university products. Abercrombie remains focused on investing in its business, particularly in digital and technology, and continues to open and transform its shops. Artificial intelligence (AI) plays a crucial role at Abercrombie, although it is nothing new to the company. A dedicated AI working group is exploring the opportunities offered by this technology. Data and analysis help to understand customer expectations, influencing the company's marketing and digital strategies.
Abercrombie & Fitch Co., through its subsidiaries, is a global, digitally led omnichannel retailer. The Company offers a range of assortment of apparel, personal care products and accessories for men, women, and kids, which are sold primarily through its Company-owned stores and digital channels, as well as through various third-party arrangements. The Company’s brands include Abercrombie brands, which includes Abercrombie & Fitch and abercrombie kids, and Hollister brands, which includes Hollister and Gilly Hicks. Its geographic segments include Americas, EMEA, and APAC. The Americas segment includes operations in North America and South America. The EMEA segment includes operations in Europe, the Middle East and Africa. The APAC segment includes operations in the Asia-Pacific region, including Asia and Oceania. The Company operates 40 international franchise stores across the Company’s brands primarily located within the Americas and EMEA region.
This super rating is the result of a weighted average of the rankings based on the following ratings: Global Valuation (Composite), EPS Revisions (4 months), and Visibility (Composite). We recommend that you carefully review the associated descriptions.
Investor
Investor
This super composite rating is the result of a weighted average of the rankings based on the following ratings: Fundamentals (Composite), Global Valuation (Composite), EPS Revisions (1 year), and Visibility (Composite). We recommend that you carefully review the associated descriptions.
Global
Global
This composite rating is the result of an average of the rankings based on the following ratings: Fundamentals (Composite), Valuation (Composite), Financial Estimates Revisions (Composite), Consensus (Composite), and Visibility (Composite). The company must be covered by at least 4 of these 5 ratings for the calculation to be performed. We recommend that you carefully review the associated descriptions.
Quality
Quality
This composite rating is the result of an average of the rankings based on the following ratings: Capital Efficiency (Composite), Quality of Financial Reporting (Composite), and Financial Health (Composite). The company must be covered by at least 2 of these 3 ratings for the calculation to be performed. We recommend that you carefully review the associated descriptions.
ESG MSCI
ESG MSCI
The MSCI ESG score assesses a company’s environmental, social, and governance practices relative to its industry peers. Companies are rated from CCC (laggard) to AAA (leader). This rating helps investors incorporate sustainability risks and opportunities into their investment decisions.
