Abercrombie & Fitch Co (FRA:AFT) Operating Income: €587 Mil (TTM As of Apr. 2026)


FRA:AFT Abercrombie & Fitch Co FRA:AFT
88 GF Score
Price €74.00
GF Value €88.46
Valuation Modestly Undervalued
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What is Abercrombie & Fitch Co Operating Income?

Abercrombie & Fitch Co FRA:AFT -1.60% 88 Operating Income is €587 Mil as of Apr. 2026. GuruFocus rates FRA:AFT with a GF Score™ of 88/100 and a GF Value™ of €88.46 (Modestly Undervalued).

Abercrombie & Fitch Co's Operating Income for the three months ended in Apr. 2026 was €76 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Apr. 2026 was €587 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Abercrombie & Fitch Co's Operating Income for the three months ended in Apr. 2026 was €76 Mil. Abercrombie & Fitch Co's Revenue for the three months ended in Apr. 2026 was €952 Mil. Therefore, Abercrombie & Fitch Co's Operating Margin % for the quarter that ended in Apr. 2026 was 7.97%.

Good Sign:

Abercrombie & Fitch Co operating margin is expanding. Margin expansion is usually a good sign.

Abercrombie & Fitch Co's 5-Year average Growth Rate for Operating Margin % was 46.20% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Abercrombie & Fitch Co's annualized ROC % for the quarter that ended in Apr. 2026 was 11.63%. Abercrombie & Fitch Co's annualized ROC (Joel Greenblatt) % for the quarter that ended in Apr. 2026 was 21.31%.

Abercrombie & Fitch Co  (FRA:AFT) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Abercrombie & Fitch Co's annualized ROC % for the quarter that ended in Apr. 2026 is calculated as:

ROC % (Q: Apr. 2026 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jan. 2026 ) + Invested Capital (Q: Apr. 2026 ))/ count )
=303.684 * ( 1 - 27.6% )/( (1814.907 + 1966.603)/ 2 )
=219.867216/1890.755
=11.63 %

where

Invested Capital(Q: Jan. 2026 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=3014.135 - 735.889 - ( 667.674 - max(0, 941.206 - 1404.545+667.674))
=1814.907

Invested Capital(Q: Apr. 2026 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=2952.284 - 611.156 - ( 529.437 - max(0, 835.436 - 1209.961+529.437))
=1966.603

Note: The Operating Income data used here is four times the quarterly (Apr. 2026) data.

2. Joel Greenblatt's definition of Return on Capital:

Abercrombie & Fitch Co's annualized ROC (Joel Greenblatt) % for the quarter that ended in Apr. 2026 is calculated as:

ROC (Joel Greenblatt) %(Q: Apr. 2026 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Jan. 2026  Q: Apr. 2026
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=323.308/( ( (1422.428 + max(0.98200000000008, 0)) + (1541.059 + max(69.368, 0)) )/ 2 )
=323.308/( ( 1423.41 + 1610.427 )/ 2 )
=323.308/1516.9185
=21.31 %

where Working Capital is:

Working Capital(Q: Jan. 2026 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(124.89 + 511.637 + 100.344) - (735.889 + 0 + 0)
=0.98200000000008

Working Capital(Q: Apr. 2026 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(124.866 + 455.451 + 100.207) - (611.156 + 0 + 1.1368683772162E-13)
=69.368

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Apr. 2026) EBIT data.

3. Operating Income is also linked to Operating Margin %:

Abercrombie & Fitch Co's Operating Margin % for the quarter that ended in Apr. 2026 is calculated as:

Operating Margin %=Operating Income (Q: Apr. 2026 )/Revenue (Q: Apr. 2026 )
=75.921/952.317
=7.97 %

* 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.

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.

Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.

Abercrombie & Fitch Co Operating Income Related Terms

Abercrombie & Fitch Co Operating Income Historical Data

* Premium members only.

The historical data trend for Abercrombie & Fitch Co's Operating Income 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.

Abercrombie & Fitch Co Operating Income Chart

Abercrombie & Fitch Co Annual Data
Trend Jan17 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23 Jan24 Jan25 Jan26
Operating Income
Get a 7-Day Free Trial Premium Member Only Premium Member Only 303.29 85.98 444.93 715.63 594.97

Abercrombie & Fitch Co Quarterly Data
Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24 Oct24 Jan25 Apr25 Jul25 Oct25 Jan26 Apr26
Operating Income 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 90.36 177.11 133.16 200.78 75.92
FRA:AFT
88GF Score
Abercrombie & Fitch Co FRA:AFT
Operating Income is just one metric. See GF Score™, valuation, warning signs, and more.
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Abercrombie & Fitch Co Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in Apr. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was €587 Mil.

* 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.

Frequently Asked Questions Learn more about Operating Income →
What does a Operating Income of €587 Mil mean?
Abercrombie & Fitch Co (FRA:AFT) has a Operating Income of €587 Mil as of Apr. 2026. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Abercrombie & Fitch Co and its competitors.
Is Abercrombie & Fitch Co's Operating Income too high?
Abercrombie & Fitch Co's current Operating Income is €587 Mil. Overall, Abercrombie & Fitch Co has a GF Score™ of 88/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Abercrombie & Fitch Co's Operating Income compare to AEO and BOOT?
Abercrombie & Fitch Co's Operating Income of €587 Mil can be compared against companies in the Retail - Cyclical industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Income for a Retail - Cyclical company?
A good Operating Income depends on the Retail - Cyclical industry context. However, Operating Income should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Income mean?
A high Operating Income can signal that a stock is expensive relative to its fundamentals. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Abercrombie & Fitch Co and its competitors. Abercrombie & Fitch Co's current Operating Income is €587 Mil. 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 €88.46, compared to a current price of €74.00 — trading 16.3% below its estimated fair value. The current Operating Income is €587 Mil. Abercrombie & Fitch Co's overall GF Score™ is 88/100. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Income calculated?
Operating Income is calculated from a company's financial statements. For Abercrombie & Fitch Co (FRA:AFT), the current Operating Income is €587 Mil 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 €74.00 is trading 16.3% below its estimated GF Value™ of €88.46. GuruFocus considers Abercrombie & Fitch Co to be Modestly Undervalued.

Key valuation signals for FRA:AFT:

  • Operating Income: €587 Mil
  • GF Value™: €88.46 vs. price of €74.00 (16.3% below fair value)
  • GF Score™: 88/100

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 Business Description

Address 6301 Fitch Path, New Albany, OH, USA, 43054
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.
88GF Score

Get the complete analysis for FRA:AFT

Operating Income is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€74.00
Price
€88.46
GF Value