Would You Still Hold Abercrombie & Fitch Stock If It Fell Another 30%?
Abercrombie & Fitch (ANF) stock is down 17.7% in a day. The recent slide reflects renewed concerns around lowered sales forecasts, rising tariffs, and a weak consumer outlook, but sharp drops like this often raise a tougher question: is the weakness temporary, or a sign of deeper cracks in the story?
Before judging its downturn reslience, let’s look at where Abercrombie & Fitch stands today.
- Size: Abercrombie & Fitch is a $4.8 Bil company with $5.2 Bil in revenue currently trading at $102.78.
- Fundamentals: Last 12 month revenue growth of 7.6% and operating margin of 13.9%.
- Liquidity: Has Debt to Equity ratio of 0.23 and Cash to Assets ratio of 0.18
- Valuation: Abercrombie & Fitch stock is currently trading at P/E multiple of 9.2 and P/EBIT multiple of 6.5
- Has returned (median) 52.8% within a year following sharp dips since 2010. See ANF Dip Buy Analysis.
These metrics point to a Moderate operational performance, alongside Low valuation – making the stock Attractive. For details, see Buy or Sell ANF Stock
That brings us to the key consideration for investors worried about this fall: how resilient is ANF stock if markets turn south? This is where our downturn resilience framework comes in. Suppose ANF stock falls another 20-30% to $72 – can investors comfortably hold on? Turns out, the stock has fared much worse than the S&P 500 index during various economic downturns, based on (a) how much the stock fell and, (b) how quickly it recovered. Below, we dive deeper into each such downturn.
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2022 Inflation Shock
- ANF stock fell 69.9% from a high of $47.85 on 18 November 2021 to $14.39 on 31 August 2022 vs. a peak-to-trough decline of 25.4% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 23 August 2023
- Since then, the stock increased to a high of $192.34 on 12 June 2024 , and currently trades at $102.78
| ANF | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -69.9% | -25.4% |
| Time to Full Recovery | 357 days | 464 days |
2020 Covid Pandemic
- ANF stock fell 56.8% from a high of $18.46 on 15 January 2020 to $7.97 on 2 April 2020 vs. a peak-to-trough decline of 33.9% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 9 November 2020
| ANF | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -56.8% | -33.9% |
| Time to Full Recovery | 221 days | 148 days |
2018 Correction
- ANF stock fell 54.6% from a high of $30.48 on 3 May 2019 to $13.84 on 3 September 2019 vs. a peak-to-trough decline of 19.8% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 8 March 2021
| ANF | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -54.6% | -19.8% |
| Time to Full Recovery | 552 days | 120 days |
2008 Global Financial Crisis
- ANF stock fell 83.3% from a high of $84.51 on 10 October 2007 to $14.15 on 20 November 2008 vs. a peak-to-trough decline of 56.8% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 18 December 2023
| ANF | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -83.3% | -56.8% |
| Time to Full Recovery | 5,506 days | 1,480 days |
Feeling jittery about ANF stock? Consider portfolio approach.
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