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Abercrombie & Fitch Co. ( A&F ), a company incorporated in Delaware in 1996, through its subsidiaries (collectively, A&F and its subsidiaries are referred to as the Company ), is a global, digitally-led, omnichannel retailer. The Company offers a broad assortment of apparel, personal care products and accessories for men, women and kids, which are sold primarily through its Company-owne…
13.28% operating margin is respectable but not wide. ROIC at 20.31%. Suggests the business covers its cost of capital, but doesn't point to a wide moat.
Revenue grew 6.4%, steady but not accelerating. Free cash flow declined 28% despite revenue growth, conversion is weakening.
Free cash flow declined 28% versus the prior year, cash generation momentum has weakened. ROIC dropped from 24.99% to 20.31%, capital efficiency is deteriorating.
Profitability & Returns
Revenue (TTM)
$5.27B
▲ +6.4% YoY
Net Income (TTM)
$507M
▼ -10.5% YoY
Op. Margin
13.28%
▼ -1.7pp YoY
ROIC
20.31%
▼ -4.7pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
$378M
▼ -28.3% YoY
Op. Cash Flow (TTM)
$619M
▼ -12.8% YoY
Net Debt
$384M
Cash & Equiv.
$785M
5Y CAGR: +11.0%
5Y CAGR: +4.5%
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