Abercrombie & Fitch Company (ANF)

Days of inventory on hand (DOH)

		Feb 3, 2024	Oct 28, 2023	Jul 29, 2023	Apr 29, 2023	Jan 28, 2023	Oct 29, 2022	Jul 30, 2022	Apr 30, 2022	Jan 29, 2022	Oct 30, 2021	Jul 31, 2021	May 1, 2021	Jan 30, 2021	Oct 31, 2020	Aug 1, 2020	May 2, 2020	Feb 1, 2020	Nov 2, 2019	Aug 3, 2019	May 4, 2019
Inventory turnover		3.38	2.65	3.18	3.48	3.15	2.08	2.14	2.63	2.66	2.50	3.19	3.34	3.05	2.36	2.95	3.29	3.39	2.22	2.67	2.89
DOH	days	107.96	137.52	114.88	105.03	115.84	175.18	170.52	138.94	137.02	145.97	114.41	109.18	119.50	154.79	123.85	110.94	107.68	164.60	136.64	126.52

February 3, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.38
= 107.96

The days of inventory on hand (DOH) for Abercrombie & Fitch Company have fluctuated over the past few years. Looking at the trend from 2019 to 2024, we can observe that the company has experienced varying levels of efficiency in managing its inventory.

In the most recent period as of February 3, 2024, the DOH stands at 107.96 days, indicating that the company holds approximately 108 days' worth of inventory on hand. This suggests that Abercrombie & Fitch Company has improved its inventory management efficiency compared to the previous period.

During the 2022 to 2023 period, there was a significant increase in the DOH, peaking at 175.18 days in October 29, 2022, and remaining relatively high in subsequent periods. This prolonged high DOH could signify potential issues such as overstocking or slow-moving inventory, which may tie up capital and impact profitability.

On the other hand, the DOH dropped to a lower level in early 2021, reaching a low of 109.18 days on January 30, 2021, which suggests that the company took steps to streamline its inventory management processes.

In general, a high DOH can indicate inefficiencies in inventory management and tie up capital in the form of excess inventory, while a low DOH can point to stockouts or lost sales due to inadequate inventory levels. It is important for Abercrombie & Fitch Company to strike a balance and optimize their inventory levels to improve operational efficiency and maintain healthy levels of working capital.