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.
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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Individual stocks can soar or tank but one thing matters: staying invested. The right portfolio can help you stay invested, capture upside and mitigate the downside associated with any individual stock.
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