ANF

Abercrombie & Fitch Co. - Ordinary Shares - Class A

Consumer


Presented:11/03/2021
Price:$46.27
Cap:$2.73B
Current Price:$160.24
Cap:$8.18B

Presented

Date11/03/2021
Price$46.27
Market Cap$2.73B
Ent Value$2.83B
P/E Ratio10.85x
Book Value$16.03
Div Yield0%
Shares O/S59.08M
Ave Daily Vol1,803,266
Short Int17.59%

Current

Price$160.24
Market Cap$8.18B
Abercrombie & Fitch Co. engages in the retail of apparel, personal care products and accessories. It offers apparel products, including knit tops, woven shirts, graphic t-shirts, fleece, sweaters, jeans, woven pants, shorts, outerwear, dresses, intimates and swimwear; and personal care products and accessories for men, women and kids under the Abercrombie & Fitch, abercrombie kids, Hollister and Gilly Hicks brands. The company was founded by David Abercrombie in 1892 and is headquartered in New Albany, OH.

Publicly traded companies mentioned herein: Abercrombie & Fitch Co (ANF), American Eagle Outfitters Inc (AEO), Bed Bath & Beyond Inc (BBBY), Gap Inc/The (GPS)

Highlights

The presenter is long shares of Abercrombie & Fitch Co (ANF) expecting improving fundamentals, while noting the recent performance of BBBY post advancing a three-year share repurchase program to the current year, which rhymes with the ANF playbook. ANF has $921MM of cash on its balance sheet and should generate an incremental $300MM – $350MM of cash over the next two quarters, which combine to make up roughly half of its $2.7B market cap. Unlike peers such as GPS and AEO that are investing in logistics and infrastructure assets, ANF is buying back stock. It repurchased 2.4MM shares ($100MM) last quarter and has another 6.5MM shares remaining under the previously authorized share repurchase program. Aggressive repurchases should continue given the cash balance and management’s recently stated focus on returning excess cash to shareholders through buybacks. ANF is still viewed as a legacy retailer, so he also sees upside to the multiple on the back of the e-commerce transformation.

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Idea Discussion

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