Abercrombie & Fitch Co. (NYSE:ANF)

Abercrombie & Fitch (ANF) is a specialty retailer selling men’s, women’s, and kids’ casual and business wear in US. It sells its products under four brand names namely: Abercrombie, Abercrombie and Fitch, Hollister, and RUEH. The company predominantly has mall-based locations, but also offers products through its websites. It has 906 stores in the U.S. and 6 stores in Canada.

The specialty apparel industry is going through significant changes with retailers gradually adopting multi-brand strategy to cater to diverse customers. A multi-brand company like ANF has a huge potential customer base as approximately half of the U.S. population, belonging to the age group of 7-35 years, fits the company’s target group.

The two brands— Abercrombie and Fitch, and Hollister— that targets customers aged between 14-22 years contribute around 86% to the company’s revenue. This target group is expected to outpace the growth of general population by the ratio of 2:1.

Moreover, revenues from the Hollister brand have grown by a whooping 72% in 2005 with same store sales also witnessing a double-digit growth in the past two years. Such galloping success is largely a result of the company’s growing popularity, which is evident from the fact that it has topped the survey of the best place to shop.

Additionally, the company wants to expand its presence in Canada, Europe, and Japan. It is also planning to launch its fifth brand, Concept 5, with significant investments. Being a zero debt company, ANF has given the best returns on equity amongst its peers. Therefore, considering the positive trend in same store sales and rapid increase in new stores with stable balance sheet, the company is expected to fair well.

CHRISTMAS SALES WILL BE DOWN

next 2 months

ANF is showing some serious value-traits.

Strong fundamentals and "bargain" price today. This stock is "worth" $100 at least.

Best of breed teen retailer. Market is undervalueing the companies high ROIC and overvalueing the likelyhood of a weak holiday season.

Good fundamental values compared others in retail industry. My teenage girls swear by this store. ANF pushing new new growth opportunities focused on specific age groups

Good last quarter, and price drop signaled a buying opportunity to me.

Specialty retailers like ANF do not fair well in economy slowdowns. When the sheeple figure out that low oil prices are a sign of economic slow-down and are falsely lower because war demand is also slowed; we are about to repeat the 1970's bear market. Hard landing reality is soon to set in and with that ANF will plunge.......

Stock has reached technical support around $70-71 and is too cheap relative to its fundamentals, especially given the "lifestyle brands" it has developed.

45:CS14

Abercrombie is killing it. With their new brand Hollister they are going to outperform the S & P for the next 6 months. Why? Xmas season dummy. I dare you to go to your local mall and not see teens loving the surf look at Hollister. They've reported great quarters all year and will continue to do so.

holidays

Teenage girls have to wear Abercrombie no matter where the gas price is or if their house value is up or down. If you haven't caught the fashion bug yet, buy this stock so you'll get to use the proceeds on a shopping spree at ANF someday.

DIE
i want this company to die
and wear ironed clothes to its funeral

As a past employee, I can't stand the company. But it's an absolute juggernaut in retail. And if you can keep a Secret, A&F is in talks of launching a 5th concept -- a lingerie store.

Yes, I've included a terrible pun somewhere in my review.

STOCK IS ON A ROLE, PRICE OF OIL IS DOWN, UPCOMING HOLIDAY SEASON EQUALS CONTINUED MOMENTUM FOR FEW MORE MONTHS

Earnings are heading for $4.50-5.00 year ending Jan 07. Accelerating earnings growth toward 30% area, maybe higher. Cash is pouring in, new concepts Hollister and Ruehl growing strongly, buying back shares, stock heading higher on expanding p/e of 18-20x trailing eps = $81-100 in 2007.

Love their clothing!!!