Earnings per share (EPS) are expected to rise by 17.5% to $3.49, indicating a potential boost in the company’s stock price.
The company’s price-to-earnings (P/E) ratio is approximately 9.17, suggesting that investors are paying a reasonable amount for its earnings.
ANF’s debt-to-equity ratio is approximately 0.76, showing a moderate level of debt relative to equity, which ensures financial stability.
Abercrombie & Fitch Co. (NYSE:ANF) is a well-known American retailer specializing in casual wear. The company has a strong presence in the fashion industry, with a focus on brand expansion and appealing product assortments. ANF competes with other major retailers like American Eagle and Hollister. The company is set to release its quarterly earnings on March 5, 2025, with Wall Street estimating earnings per share (EPS) of $3.49 and revenue of approximately $1.57 billion.
The anticipated strong fourth-quarter results for fiscal 2024 are largely due to a successful holiday season, as highlighted by Zacks. ANF’s growth is driven by strategic brand expansion and engaging marketing strategies. The Zacks Consensus Estimate projects fourth-quarter revenues at $1.56 billion, a 7.6% increase from the previous year. This growth reflects the company’s ability to attract customers with its appealing product offerings.
Earnings per share are expected to rise by 17.5% to $3.49, compared to $2.97 in the same quarter last year. Despite a slight downward revision in earnings estimates over the past week, ANF has consistently surpassed earnings expectations, with an average surprise of 14.8% over the last four quarters. This track record suggests that the company may once again exceed consensus estimates, potentially boosting its stock price.
ANF’s financial metrics indicate a solid market valuation. The company’s price-to-earnings (P/E) ratio is approximately 9.17, while the price-to-sales ratio stands at about 1.01. These figures suggest that investors are paying a reasonable amount for the company’s earnings and sales. Additionally, the enterprise value to sales ratio is around 1.07, reflecting the company’s total valuation relative to its sales.
The company’s financial health is further supported by an enterprise value to operating cash flow ratio of approximately 7.27, indicating efficient conversion of operating cash flow into enterprise value. ANF’s debt-to-equity ratio is approximately 0.76, showing a moderate level of debt relative to equity. With a current ratio of about 1.40, the company has a good level of liquidity to cover its short-term liabilities, ensuring financial stability.
