Sundry Photography/iStock Editorial via Getty Images Fashion retailer Abercrombie & Fitch Co. ( NYSE: ANF ) stock price has risen 1,430% since its low at the start of the pandemic in March 2020, but it is now overpriced trading with a P/E of 23.3x based on latest reported annual earnings, especially since management has guided for only a 4-6% sales increase this year.
A major reason why I think ANF stock price is too high, is that investors are pricing in lower interest rates. I think rates will remain higher for much longer than the market is currently expecting. Using higher rates in stock pricing models results in significantly lower values for ANF.
Data by YCharts Re-Branding Abercrombie & Fitch The Abercrombie & Fitch brand name has been on a roller coaster over the last 25 years. Years ago it soared, as young consumers flocked to their stores to buy clothes that were marketed by preppy WASP models. Then, certain consumers attacked the brand's image and statements made by their former CEO Mike Jeffries, that created a PR disaster, including when he stated : That's why we hire good-looking people in our stores.
Because good-looking people attract other good-looking people, and we want to market to cool, good-looking people. We don't market to anyone other than that..
.Are we exclusionary? Absolutely. Those companies that are in trouble are trying to target everybody: young, old, fat, skinny.
But then you become totally vanilla. You don't alienate anybody, but you don't exc.
