Why Have We Revised Our Price Estimate For Abercrombie & Fitch?
- Abercrombie & Fitch’s shares fell by more than 15% after the release of first quarter earnings as it missed analyst estimates on both revenues and EPS.
- We have revised our price estimate for the company by 40%, lowering its revenue per square foot and EBITDA margin forecast and increasing the discount rate.
- We’ve recalculated the discount rate with a higher market risk premium, considering the volatile state of the U.S. apparel market.
Relevant Articles
- Up 5x Over The Last Twelve Months, Where Is Abercrombie & Fitch Stock Headed?
- Abercrombie Stock Up 40% In Last Month. What’s Next?
- Will Abercrombie’s Stock Trade Higher Following Q1 Results?
- Abercrombie & Fitch Stock Down 34% LTM, What’s Next?
- Does Abercrombie Stock Have More Room To Run?
- What to Watch For In Abercrombie & Fitch’s Stock Post Q2?
Have more questions about Abercrombie & Fitch? See the links below:
- What Is Abercrombie & Fitch’s Revenue & Earnings Breakdown In Terms of Different Operating Segments?
- What Is Abercrombie & Fitch’s Fundamental Value Based On Expected 2015 Results?
- How Has Abercrombie & Fitch’s Revenue Composition Changed In The Last Five Years?
- By How Much have Abercrombie & Fitch’s Revenues & Earnings Grown In The Last Five Years?
Notes:
1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com
2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis for Abercrombie & Fitch
Interactive Institutional Research (Powered by Trefis):
Global Large Cap | U.S. Mid & Small Cap | European Large & Mid Cap |More Trefis Research