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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 important for most investors, since price performance can both impact your investment portfolio and help you compare investment results across sectors and industries.

Another factor that can influence investors is FOMO, or the fear of missing out, especially with 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 757 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 (51.4% of the net sales in the fiscal second 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 (48.6%) 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 requires research, patience, and a little bit of risk. So, if you had invested in Abercrombie & Fitch ten years ago, you're likely feeling pretty good about your investment today.

A $1000 investment made in November 2014 would be worth $5,160.95, or a gain of 416.10%, as of November 25, 2024, according to our calculations. This return excludes dividends but includes price appreciation.

Compare this to the S&P 500's rally of 189.28% and gold's return of 116.52% 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 year-to-date period. The stock's bullish run on the bourses can be attributable to continued momentum across its both brands, which bolstered sales in second-quarter fiscal 2024. The company witnessed strong sales growth for each of its brands during the reported quarter. Markedly, the company reported sturdy second-quarter fiscal 2024 results. Management anticipates net sales for fiscal 2024 to increase 12-13% year over year from $4.3 billion. For third-quarter fiscal 2024, net sales are projected to be up in low double digits year over year and versus our estimate of a 10.1% rise. However, Abercrombie has been witnessing elevated operating costs on higher technology expenses and incentive-based compensation. Also, inflationary pressures are concerning.

Shares have gained 7.39% over the past four weeks and there have been 3 higher earnings estimate revisions for fiscal 2024 compared to none lower. The consensus estimate has moved up as well.

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