E_Y_E/iStock Unreleased via Getty Images Abercrombie & Fitch Co. ( NYSE: ANF ), the clothing manufacturer and retailer with the Abercrombie & Fitch and Hollister brands, has been the apparel sector's undeniable star in the past couple of years. The company has been able to revitalize its brands successfully and has been able to grow demand and push through better pricing as a result, pushing aggressively higher revenues.
The stock has now returned 384% in the past year after a decade of otherwise mediocre returns from the stock, as the company's brand turnaround has been able to drive dramatically improved earnings. The valuation is increasingly getting tight, though, as industry-leading financials are trajected to persist as the stock continues to climb higher. 1Y Stock Chart (Seeking Alpha) The Abercrombie Brand Turnaround Has Been Impressive Abercrombie & Fitch has achieved an incredible turnaround of the company's brands - sales have turned from very mediocre growth of a -0.
7% CAGR from FY2014 to FY2019 prior to the pandemic into 15.8% in FY2023, and the company has been able to push through increased pricing, raising the operating margin from 3.8% in FY2019 into a trailing 13.
1%. The incredible financial performance has continued as the company raised its guidance for FY2024 with the Q1 report . Author's Calculation Using TIKR Data Behind the financial trends, Abercrombie & Fitch's Abercrombie brands have had an impressive turnaround as the designs have resonated with yo.
