Abercrombie & Fitch Stock To $94?

-9.48%
Downside
110
Market
99.69
Trefis
ANF: Abercrombie & Fitch logo
ANF
Abercrombie & Fitch

Abercrombie & Fitch (ANF) stock has fallen by 20.3% in less than a month, from $90.90 on 9/19/2025 to $72.44 now. What comes next? As it turns out, we believe there is a good chance of a stock rebound considering history of recovery post-dips and our current Attractive opinion of the stock. Dip buying is a viable strategy for quality stocks that have a history of recovering from dips.

As it turns out, ANF stock passes basic quality checks. The stock has returned (median) 50% in one year, and 72% as peak return following sharp dips (>30% in 30 days) historically. For quick background, ANF operates as a specialty retailer offering apparel through Hollister and A&Fitch segments, with approximately 729 stores across Europe, Asia, Canada, the Middle East, the US, and internationally.

For details on stock fundamentals and assessment: Read Buy or Sell Abercrombie & Fitch Stock to see the full picture.

ANF stock has fallen meaningfully recently and we currently find it attractive. While this may feel like an opportunity, there is significant risk in relying on a single stock. On the other hand, there is a huge value to a broader diversified approach. If you seek an upside with less volatility than holding an individual stock, consider the High Quality Portfolio (HQ) – HQ has outperformed its benchmark – a combination of S&P 500, Russell, and S&P midcap index, and achieved returns exceeding 105% since its inception. Risk management is key – consider, what could long-term portfolio performance be if you blended 10% commodities, 10% gold, and 2% crypto with HQ’s performance metrics.

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Historical Median Returns Post Dips

Period Past Median Return
1M 2.0%
3M 7.6%
6M 18.5%
12M 49.6%

Historical Dip-Wise Details

ANF had 11 events since 1/1/2010 where the dip threshold of -30% within 30 days was triggered

  • 72% median peak return within 1 year of dip event
  • 259 days is the median time to peak return after a dip event
  • -25% median max drawdown within 1 year of dip event

 

30 Day Dip ANF Subsequent Performance
Date ANF SPY 1Y Peak
Return
Max
Drop
# Days
to Peak
Median 50% 72% -25% 259
2192025 -34% 4% -31% 0% -36% 0
5242022 -41% -10% 50% 64% -25% 259
7202020 -32% 2% 325% 393% 0% 345
3052020 -32% -9% 154% 154% -32% 365
5292019 -32% -4% -34% 4% -54% 231
10112018 -33% -6% -12% 73% -21% 204
7102017 -31% 1% 176% 210% -7% 276
5312016 -30% 0% -29% 17% -44% 90
6012012 -33% -7% 56% 72% -10% 353
11212011 -32% 0% -2% 16% -37% 114
5262010 -31% -12% 121% 125% -11% 365

Abercrombie & Fitch Passes Basic Financial Quality Checks

Revenue growth, profitability, cash flow, and balance sheet strength need to be evaluated to reduce the risk of a dip being the sign of a deteriorating business situation.

Quality Metrics Value Quality Check
Revenue Growth (LTM) 9.3% Pass
Revenue Growth (3-Yr Avg) 11.7% Pass
Operating Cash Flow Margin (LTM) 11.0% Pass
Leverage (see below) Pass
=> Interest Coverage Ratio 323.5
=> Cash To Interest Expense Ratio 252.6

Dip buying, while attractive, needs to be evaluated carefully from multiple angles. Such multi-factor analysis is exactly how we construct Trefis portfolio strategies. If you want upside with a smoother ride than an individual stock, consider the High Quality portfolio, which has outperformed the S&P, and clocked >91% returns since inception.