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Abercrombie & Fitch Co (STU:AFT) Degree of Operating Leverage : 1.70 (As of Apr. 2025)


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What is Abercrombie & Fitch Co Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Abercrombie & Fitch Co's Degree of Operating Leverage for the quarter that ended in Apr. 2025 was 1.70. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for Abercrombie & Fitch Co's Degree of Operating Leverage or its related term are showing as below:

STU:AFT's Degree of Operating Leverage is ranked worse than
56.86% of 1094 companies
in the Retail - Cyclical industry
Industry Median: 1.295 vs STU:AFT: 1.70

Abercrombie & Fitch Co Degree of Operating Leverage Historical Data

The historical data trend for Abercrombie & Fitch Co's Degree of Operating Leverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Abercrombie & Fitch Co Degree of Operating Leverage Chart

Abercrombie & Fitch Co Annual Data
Trend Jan16 Jan17 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23 Jan24 Jan25
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 9.05 -113.80 177.93 27.23 3.31

Abercrombie & Fitch Co Quarterly Data
Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24 Oct24 Jan25 Apr25
Degree of Operating Leverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 16.35 9.08 5.23 3.31 1.70

Competitive Comparison of Abercrombie & Fitch Co's Degree of Operating Leverage

For the Apparel Retail subindustry, Abercrombie & Fitch Co's Degree of Operating Leverage, along with its competitors' market caps and Degree of Operating Leverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Abercrombie & Fitch Co's Degree of Operating Leverage Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Abercrombie & Fitch Co's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Abercrombie & Fitch Co's Degree of Operating Leverage falls into.


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Abercrombie & Fitch Co Degree of Operating Leverage Calculation

Abercrombie & Fitch Co's Degree of Operating Leverage for the quarter that ended in Apr. 2025 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 698.092 (Apr. 2025) / 571.515 (Apr. 2024) - 1 )/( 4662.992 (Apr. 2025) / 4131.081 (Apr. 2024) - 1 )
=0.2215/0.1288
=1.72***

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

** TTM data of EBIT and Revenue was used to calculate Degree of Operating Leverage.
*** Please be aware that the Degree of Operating Leverage calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.


Abercrombie & Fitch Co  (STU:AFT) Degree of Operating Leverage Explanation

Degree of Operating Leverage (DOL) is a leverage ratio that measures the sensitivity of a company’s operting income, also referred to as Earnings Before Interest and Taxes (EBIT), to fluctuations in its Revenue. DOL is a method used to quantify a company’s operating risk. This risk is related to the company's structure of variable costs and fixed costs. Since the fixed costs do not allow the company to adjust the operating costs, the operating risk rises with a higher fixed-to-variable costs proportion.

A high Degree of Operating Leverage indicates that the company’s fixed costs exceed its variable costs. By increasing the sales, the company can earn more profits. In addition, the company must be able to maintain relatively high sales to cover all fixed costs.

Be Aware

The use of operating leverage varies across different industries and business sectors, and the application of Degree of Operating Leverage (DOL) should be adjusted accordingly.


Abercrombie & Fitch Co Degree of Operating Leverage Related Terms

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Abercrombie & Fitch Co Business Description

Address
6301 Fitch Path, New Albany, OH, USA, 43054
Abercrombie & Fitch Co is a specialty retailer that sells casual clothing, personal-care products, and accessories for men, women, and children. It sells direct to consumers through its stores and websites, which include the Abercrombie & Fitch, Abercrombie kids, and Hollister brands. Most stores are in the United States, but the company does have many stores in Canada, Europe, and Asia. All stores are leased. Abercrombie ships to well over 100 countries via its websites. The company sources its merchandise from dozens of vendors that are primarily located in Asia and Central America. Abercrombie has two distribution centers in Ohio to support its North American operations. It uses third-party distributors for sales in Europe and Asia.