Abercrombie & Fitch Company (ANF)

Return on equity (ROE)

		Feb 3, 2024	Jan 28, 2023	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020
Net income	US$ in thousands	328,123	2,816	270,066	-114,021	39,358
Total stockholders’ equity	US$ in thousands	1,035,160	694,841	826,090	936,628	1,058,810
ROE		31.70%	0.41%	32.69%	-12.17%	3.72%

February 3, 2024 calculation

ROE = Net income ÷ Total stockholders’ equity
= $328,123K ÷ $1,035,160K
= 31.70%

Analyzing Abercrombie & Fitch Company's return on equity (ROE) over the past five years reveals fluctuating performance levels. The ROE for the fiscal year ending February 3, 2024, improved significantly to 31.70%, marking a substantial increase compared to the previous year. This surge in ROE indicates that the company generated $31.70 in net income for every dollar of shareholder equity, reflecting enhanced profitability and efficiency of capital utilization.

In contrast, the company reported a considerably low ROE of 0.41% for the fiscal year ending January 28, 2023, showing weak returns generated on equity investments during that period. The sharp decline in ROE suggests challenges in profitability and operational efficiency, which may have impacted shareholder value.

Looking at the ROE for the fiscal years 2021 and 2020, Abercrombie & Fitch demonstrated improved performance with ROE figures of 32.69% and 3.72%, respectively. These positive results indicate the company's ability to generate higher returns on equity investments and enhance shareholder value.

However, the fiscal year ending January 30, 2021, saw a negative ROE of -12.17%, signaling that the company incurred a net loss, resulting in a negative return on equity for that period. This negative indicator may raise concerns about the company's financial health and operational efficiency during that specific fiscal year.

Overall, Abercrombie & Fitch Company's ROE performance has been variable over the past five years, with significant fluctuations in profitability and efficiency levels. The positive trends in certain years demonstrate the company's capacity to generate healthy returns on equity, while the negative ROE in one year highlights potential challenges that may have impacted shareholder value.