Important note
This AI stock analysis for Abercrombie & Fitch is not up to date. Creating and accessing our AI stock Analysis (powered by our data and Chat GPT) is only available for our premium users. Sign up to get access today!
Abercrombie & Fitch - AI Stock Analysis
Analysis generated March 13, 2025
Abercrombie & Fitch is an American retailer that primarily focuses on apparel quality for young people. Known for its attractive brand image and stylish clothing lines, the company operates worldwide through a combination of retail stores and online outlets. With a storied history dating back to 1892, Abercrombie & Fitch has seen numerous market trends and economic cycles.
Fundamental Analysis
Abercrombie & Fitch’s revenue for the last quarter was $1.21 billion. This figure marks an increase of 6.61% compared to the quarter before it, indicating healthy growth. More impressively, compared to the same quarter last year, revenue is up by 14.44%, highlighting strong year-over-year performance.
Net income for the last quarter was $132 million. This is a slight decrease of 0.89% compared to the previous quarter, which could raise some concerns. However, when compared to the same quarter last year, net income shows a considerable increase of 37.18%.
EBITDA for the last quarter stood at $219 million. There is a marginal decrease of 1.93% compared to the previous quarter, yet a substantial increase of 27.86% against the same quarter last year. These figures suggest that, while there may be short-term operational issues, the long-term outlook remains positive.
The current P/E ratio is at 7.36, which is perceived as low. This potentially indicates that the stock is undervalued, giving investors a bullish perspective on future performance.
Technical Analysis
Today's stock price is $76.02, which marks a significant decrease of 30.95% compared to a month ago. Over the past year, the stock has decreased by 39.36%, presenting a substantial long-term concern.
The trend appears bearish as the current SMA10 is 83.44, which is lower than the previous SMA10 of 85.51, suggesting a downward trend.
The RSI is currently at 50, indicating a neutral condition. This means that while the stock is neither overbought nor oversold, there are no strong signals pointing to a change in the ongoing trend. Market participants should keep an eye out for further movement.
Alternative Data Analysis
Abercrombie & Fitch has 3,151 open positions on popular job boards, and this number has remained stable over recent months, indicating the company's stable employment situation. Employee sentiment towards the business outlook is neutral but has improved by 5% over the last couple of months, which is promising.
Concerning customer acquisition, Abercrombie & Fitch’s webpage attracts an estimated 13 million visitors per month. However, this number has seen a decrease of 37% recently, a worrisome trend that may indicate declining customer interest. Similarly, daily mobile app downloads are at 2,600, also down by 37%, a similarly concerning indicator.
Regarding customer engagement, Abercrombie & Fitch has 5.1 million followers on Instagram and 460,000 followers on Twitter. Both figures have shown no meaningful increase or decrease, suggesting a static level of engagement from their audience.
AltIndex’s AI score, which predicts stock prices based on a combination of fundamental, technical, and alternative data analysis, gives Abercrombie & Fitch a score of 28, signaling a strong sell.
Conclusion and Recommendation
Abercrombie & Fitch exhibits strong year-over-year growth in revenues and net income, backed by a low P/E ratio suggesting undervaluation. However, short-term indicators, including declining stock price, bearish market trend, and decreasing online engagement, raise concerns. While the company's fundamentals remain relatively strong, the bearish technical outlook and concerning alternative data signal caution.
Recommendation: Investors should carefully consider this mix of positive fundamentals and negative technical indicators. For risk-averse investors, it may be prudent to hold off until more bullish signs emerge, while long-term investors might view the current undervaluation as a buying opportunity, assuming the company's operational improvements continue.
Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.
