Abercrombie & Fitch Financial Analysis and Predictions

3815 Words16 Pages
Stock Pitch: ANF(NASDAQ: ANF) Linqian Peng • Nan Xu • Dongmei Ye • Wei Zhang TABLE OF CONTENTS Strategy Analysis 1 Industry Analysis 1  Rivalry among Existing Firms-High 1  Bargaining Power of Buyers-High 1  Bargaining Power of Suppliers-Low 1  Threat of New Entrants-High 2  Threat of Substitutes-Medium 2 Firm Analysis 2  Firm’s strategy 2  SWOT Analysis 3 Accounting Analysis 4 Critical Accounts and Success Factors 4 Adjustments and Consistency 5  Effect on Ratios of Capitalizing Operating 5  Adjustments for Leases, Depreciation, or Inventory Accounting 6  One-time Item Adjustment 6  Revenue Recognition Policy 7  Consistency in Accounting Policies 8 Profitability Analysis 9 Abercrombie & Fitch 's Ratios 9 Comparing ratios to competitors 10 Forecasting 11 Forecast Income Statement 11 Forecast Balance Sheet 12 Forecast Cash Flow 13 Valuation 14 Strategy Analysis Industry Analysis Rivalry among Existing Firms-High Abercrombie & Fitch (ANF) has many competitors such as American Eagle, GAP, Forever 21 and Buckle in Clothing industry. Fashion, price, service, store location, selection and quality are the principal competitive factors in this industry. Also, it is very difficult for ANF to differentiate its main products such as knit and woven shirts, graphic t-shirts, fleece, jeans and woven pants, shorts, sweaters, and outerwear to its competitors’ same products only by more special designs and more attractive styles. In addition, customers' loyalty can be easily affected by fashion trend and customer preference, which is very hard to predict. Bargaining Power of Buyers-High Customers are price sensitive for buying Clothes. They have various choices among a lot of sellers for the same styles of products, so they usually find the cheapest ones by comparing different brands. The

More about Abercrombie & Fitch Financial Analysis and Predictions

Open Document