Abercrombie & Fitch Company (ANF)

Return on equity (ROE)

		Jan 31, 2025	Feb 3, 2024	Jan 31, 2024	Jan 31, 2023	Jan 28, 2023
Net income	US$ in thousands	566,223	328,123	328,123	2,816	2,816
Total stockholders’ equity	US$ in thousands	1,335,630	1,035,160	1,035,160	694,841	694,841
ROE		42.39%	31.70%	31.70%	0.41%	0.41%

January 31, 2025 calculation

ROE = Net income ÷ Total stockholders’ equity
= $566,223K ÷ $1,335,630K
= 42.39%

The return on equity (ROE) of Abercrombie & Fitch Company has shown significant fluctuations over the years. In January 2023, the ROE was at a low level of 0.41%, which indicates a relatively weak performance in generating profits from shareholder equity. This remained stable through January 31, 2023, and February 3, 2024.

However, there was a substantial improvement in the ROE by January 31, 2024, and it remained at a high level of 31.70% through February 3, 2024. This sudden increase suggests that the company was able to efficiently utilize its shareholders' equity to generate profits during this period.

By January 31, 2025, Abercrombie & Fitch Company's ROE further increased to 42.39%, indicating a significant improvement in profitability and efficiency in utilizing shareholder equity. This positive trend suggests that the company was able to generate a higher return for its shareholders during this period.

Overall, the fluctuating ROE of Abercrombie & Fitch Company highlights both challenges and successes in profitability and efficiency in utilizing shareholder equity over the years.