Abercrombie & Fitch Co. (ANF): A Bull Case Theory

We came across a bullish thesis on Abercrombie & Fitch Co. on Value investing subreddit by ilovebusiness-. In this article, we will summarize the bulls’ thesis on ANF. Abercrombie & Fitch Co.’s share was trading at $92.45 as of September 3^rd. ANF’s trailing and forward P/E were 8.79 and 8.83 respectively according to Yahoo Finance.

Abercrombie & Fitch (ANF) appears significantly undervalued despite executing one of the most successful fashion turnarounds in recent years. Following its rebrand, the company has become a core staple for young consumers, with Abercrombie’s essentials—tees, hoodies, and other blanks—positioned as some of the best-quality basics in the market. The brand has not only embraced prevailing fashion trends but also iterated on them effectively, such as expanding the men’s cropped tee trend into multiple variations and collaborations with the NBA and artists.

This ability to refine and extend trends differentiates Abercrombie as a tastemaker rather than a follower. Their marketing is equally strong, with the company among the earliest to scale influencer-driven affiliate campaigns across TikTok and Instagram Reels, securing broad cultural relevance with Gen Z.Beyond branding, Abercrombie is expanding its retail footprint, while Hollister—its sibling brand—has potential to capitalize on the resurging Y2K aesthetic. With fashion cycles moving quickly, a revival of the early 2000s surf era, where Hollister once dominated, represents a significant optionality for growth if the brand leans into its heritage. Against this backdrop, valuation looks starkly misaligned.

ANF trades at a P/E of just 9, far below global peers: H&M at 24, Ralph Lauren at 22, American Eagle at 13, and Gap also at 9 but with far weaker fundamentals. Given its strong product-market fit, disciplined trend execution, effective marketing, and optional growth levers, ANF’s current pricing suggests a disconnect that presents an attractive opportunity for investors seeking mispriced retail equities.

Previously we covered a bullish thesis on Abercrombie & Fitch Co. (ANF) by LocoJorge7 in March 2025, which highlighted its undervaluation at 7.4x P/E, strong sales growth, and intrinsic value upside. The company’s stock price has appreciated approximately 12% since our coverage. This is because the turnaround thesis played out. The thesis still stands as ANF remains undervalued. ilovebusiness- shares a similar but emphasizes on branding, trend execution, and Hollister’s Y2K optionality.

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Disclosure: None.