Abercrombie & Fitch Company (ANF)

Inventory turnover

		Jan 31, 2025	Feb 3, 2024	Jan 31, 2024	Jan 31, 2023	Jan 28, 2023
Cost of revenue	US$ in thousands	1,773,930	1,587,260	1,587,260	1,593,210	1,593,210
Inventory	US$ in thousands	575,005	469,466	469,466	505,621	505,621
Inventory turnover		3.09	3.38	3.38	3.15	3.15

January 31, 2025 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $1,773,930K ÷ $575,005K
= 3.09

Abercrombie & Fitch Company's inventory turnover has shown relatively stable performance over the period under review. The inventory turnover ratio indicates how efficiently the company is managing its inventory. A higher turnover ratio suggests that the company is selling its inventory more quickly, which is generally favorable.

From January 2023 to February 2025, Abercrombie & Fitch's inventory turnover ranged between 3.09 and 3.38 times. This consistency in the turnover ratio indicates that the company has been able to efficiently manage its inventory levels and sales volume. However, it is worth noting that the inventory turnover ratio decreased slightly in January 2025 compared to the previous periods.

Overall, Abercrombie & Fitch's inventory turnover implies that the company has been effectively balancing its inventory levels with customer demand, ensuring that its products are not sitting idle for extended periods. Going forward, it will be crucial for the company to continue monitoring and managing its inventory effectively to support its operational efficiency and financial performance.