Who Relies On Debt More; Gap Inc or Abercrombie & Fitch?

-2.75%
Downside
131
Market
127
Trefis
ANF: Abercrombie & Fitch logo
ANF
Abercrombie & Fitch

GPS and ANF leverage

  • The comparison reveals that Gap Inc is notably more reliant on Debt for generating assets and financing growth than Abercrombie is
  • This makes the apparel major’s earnings slightly more susceptible to volatility on account of interest expense
  • Abercrombie on the other hand is still financing much of its growth through equity, which means that its earnings are reflective of its core business performance

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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
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