Han Nguyen

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• Presented by Amanda Le
• Han Nguyen
• Hoan Nguyen
• Huy Ho
• Liliana Fung
• Ly Kim Tran
• Serge Vallet

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Abercrombie and Fitchs History

• Abercrombie Co. began in 1892 under the name
  David T. in downtown Manhattan

• Ezra Fitch became a partner and in 1904, the name
  was changed to Abercrombie Fitch

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Abercrombie Commitment

• Is committed to increasing and leveraging the
  diversity of their associates.
• Better understand their customers, enhance their
  organizational effectiveness.
• Capitalize on the talents of their workforce and
  represent the communities in which they do
  business.

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Continues growing...

• In 2001, AF moved into a new 300 acre Home
  Office in New Albany, Ohio.
• As of April 1, 2005, the Company's 793 stores are
  located in 49 states and the District of Columbia.

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Abercrombie Fitch today

• A successful company with four brands
• Abercrombie Fitch
• abercrombie
• Hollister
• RUEHL

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Executive officers
Jeffries, Michael S. Chief Executive Officer and
Chief Financial Officer
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Ownership Information

•  
• Shares Outstanding 87.00 Mil
• Institutional Ownership () 92.10 
• Top 10 Institutions () 30.64 
• Mutual Fund Ownership() 40.47 
• 5/Insider Ownership () 7.06 
• Float ()
  92.94

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Where we stand
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Top Three Revenue
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Our Products
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More for girls and women
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Also, dont forget you men
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Financial Ratio Analysis
ANFs Growth Rate is VERY GOOD.
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Financial Ratio Analysis
ANF Price Ratio overall are considered VERY GOOD.
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Financial Ratio Analysis
ANFs Profit margin overall are EXCELLENT.
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Financial Ratio Analysis
ANFs Financial condition is EXCELLENT.
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Financial Ratio Analysis
Investment returns of ANF over all are EXCELLENT.
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Financial Ratio
Overall, Management Efficiency is VERY STRONG.
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Abercrombie Trading Analysis

• Current Share Price 54.49
• Average Daily Trading Volume 1.505 Million
• Market Capitalization 4.749 Billion

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Holding Period Return
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Free Cash Flow Cost of Equity
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Risk Analysis
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Risk Analysis (cont.)
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Required Rate on Equity

• Ke (DCF model) 0.2002
• Ke ( CAPM) 0.0620
• The company is currently under-priced
• because Ke(DCF model) Ke(CAPM)

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Cost of capital and Optimal Capital Structure
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Capital Structure
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Current Cost of Capital
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M M Proposition
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Market Efficiency

• Company Specific

Abercrombie Fitch Co. Reports Record Fourth
Quarter Profits
Feb 15th
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Market Efficiency

• Non Company Specific

News OPEC agrees to cut production
December 10th
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Strengths and Weaknesses

• Strengths
• Net Sales and NI increase every year
• Cash inflow increase for several year
• Financial ratios Excellent
• Positive holding period return
• Weaknesses
• Beta ratio
• The board of directors

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5- Year Stock Price
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Hold, Sell, or Buy
We suggest investors to either hold or buy ANFs
Stocks
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The End

• Thank You!