Abercrombie & Fitch Company (ANF)

Inventory turnover

		Feb 3, 2024	Jan 28, 2023	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020
Cost of revenue	US$ in thousands	1,587,260	1,593,210	1,400,770	1,234,180	1,472,160
Inventory	US$ in thousands	469,466	505,621	525,864	404,053	434,326
Inventory turnover		3.38	3.15	2.66	3.05	3.39

February 3, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $1,587,260K ÷ $469,466K
= 3.38

Abercrombie & Fitch Company's inventory turnover has shown some fluctuations over the past five years. The inventory turnover ratio indicates how efficiently the company manages its inventory by showing how many times the inventory is sold and replaced within a specific period.

In 2024, Abercrombie & Fitch's inventory turnover ratio was 3.38, which indicates that the company's inventory turned over approximately 3.38 times during the fiscal year. This was an improvement compared to the previous year, where the ratio was 3.15.

Looking at the trend over the past five years, we see that the inventory turnover ratio was lowest in 2022 - 2.66, and highest in 2020 at 3.39. A higher inventory turnover ratio generally indicates more efficient inventory management, as it suggests that the company is selling and restocking its inventory more quickly.

Overall, Abercrombie & Fitch's inventory turnover has shown some variability, but the recent uptick in the ratio in 2024 compared 2023 is a positive sign of improved inventory management efficiency. It is essential for the company to continue monitoring and optimizing its inventory turnover to ensure effective operations and profitability.