Abercrombie & Fitch CoFRA:AFT +0.54%86 Gross Margin % is 62.85% as of Apr. 2026, which is 3% above its 10-year median of 60.75. GuruFocus rates FRA:AFT with a GF Score™ of 86/100 and a GF Value™ of €92.22 (Modestly Undervalued). Among 1,117 Retail - Cyclical companies, Abercrombie & Fitch Co ranks better than 87.82% on this metric.
FRA:AFT's Gross Margin % is ranked better than 87.82% of 1117
companies
in the Retail - Cyclical industry
Industry Median: 36.23
vs FRA:AFT: 61.66
Abercrombie & Fitch Co had a gross margin of 62.85% for the quarter that ended in Apr. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Abercrombie & Fitch Co was 0.80% per year.
Abercrombie & Fitch Co (FRA:AFT) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Abercrombie & Fitch Co had a gross margin of 62.85% for the quarter that ended in Apr. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Abercrombie & Fitch Co Gross Margin % Related Terms
Abercrombie & Fitch Co Gross Margin % Historical Data
* Premium members only.
The historical data trend for Abercrombie & Fitch Co's Gross Margin % 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.
FRA:AFT vs AEO, VSCO, BKE: Gross Margin % Comparison
For the Apparel Retail subindustry, Abercrombie & Fitch Co's Gross Margin %, along with its competitors' market caps and Gross Margin % 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 Gross Margin % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Abercrombie & Fitch Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Abercrombie & Fitch Co's Gross Margin % falls into.
* 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.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Abercrombie & Fitch Co (FRA:AFT) has a Gross Margin % of 62.85% as of Apr. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Abercrombie & Fitch Co and its competitors. This is near median its historical median of 60.75. Over the past decade, Abercrombie & Fitch Co's Gross Margin % has ranged from 56.91 to 64.15. According to the industry distribution chart, Abercrombie & Fitch Co ranks #136 out of 1117 companies in the Retail - Cyclical industry, placing it in the top 12.2%.
Is Abercrombie & Fitch Co's Gross Margin % too high?
Abercrombie & Fitch Co's current Gross Margin % of 62.85% is near median its 10-year median of 60.75. Over the past 10 years, this metric has ranged from a low of 56.91 to a high of 64.15. The Retail - Cyclical industry median Gross Margin % is 36.23. Abercrombie & Fitch Co's value of 62.85% is 73.5% above this industry median. Based on the distribution chart, Abercrombie & Fitch Co ranks #136 out of 1117 companies in the Retail - Cyclical industry, which is in the top quartile — a strong position relative to peers. Overall, Abercrombie & Fitch Co has a GF Score™ of 86/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Abercrombie & Fitch Co's Gross Margin % compare to AEO and VSCO?
According to the Retail - Cyclical industry distribution chart, Abercrombie & Fitch Co ranks #136 out of 1117 companies for Gross Margin %. This places Abercrombie & Fitch Co in the top 12% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 36.23. Abercrombie & Fitch Co's value of 62.85% is 73.5% above this benchmark. Historically, Abercrombie & Fitch Co's own Gross Margin % has ranged from 56.91 to 64.15 over the past decade. While the company's 10-year median is 60.75 vs. the industry median of 36.23, Abercrombie & Fitch Co has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Retail - Cyclical company?
The median Gross Margin % among Retail - Cyclical companies is 36.23, based on 1,117 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Abercrombie & Fitch Co's current Gross Margin % of 62.85% is 73.5% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Abercrombie & Fitch Co and its competitors. For the Retail - Cyclical industry, the median Gross Margin % is 36.23 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Abercrombie & Fitch Co's current Gross Margin % is 62.85%, which is near median its own 10-year median of 60.75. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Abercrombie & Fitch Co stock overvalued right now?
Based on GuruFocus' analysis, Abercrombie & Fitch Co (FRA:AFT) is currently considered Modestly Undervalued. The stock's GF Value™ is €92.22, compared to a current price of €74.40 — trading 19.3% below its estimated fair value. The current Gross Margin % is 62.85%, which is near median its 10-year median of 60.75 and 73.5% above the Retail - Cyclical industry median of 36.23. Abercrombie & Fitch Co's overall GF Score™ is 86/100. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Abercrombie & Fitch Co (FRA:AFT), the current Gross Margin % is 62.85% as of Apr. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Abercrombie & Fitch Co (FRA:AFT) Overvalued in 2026?
Based on GuruFocus' analysis, Abercrombie & Fitch Co stock appears to be undervalued.
The current stock price of €74.40 is trading 19.3% below its estimated GF Value™ of €92.22.
GuruFocus considers Abercrombie & Fitch Co to be Modestly Undervalued.
Key valuation signals for FRA:AFT:
Gross Margin %: 62.85% (near median its 10-year median of 60.75)
GF Value™: €92.22 vs. price of €74.40 (19.3% below fair value)
Industry Position: 73.5% above the Retail - Cyclical median (#136 of 1117)
No single metric tells the full story. See the FRA:AFT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Abercrombie & Fitch Co is a digitally led, omnichannel retailer offering apparel, personal care products, and accessories for men, women, and kids through company-owned stores, digital channels, and third-party arrangements. The company operates through three geographic segments: Americas, the maximum revenue generator; Europe, the Middle East and Africa (EMEA); and Asia-Pacific (APAC). Its brand families include Abercrombie brands and Hollister brands. The Americas segment covers North and South America, EMEA includes Europe, the Middle East and Africa, and APAC includes the Asia-Pacific region, including Asia and Oceania.
86GF Score
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