Abercrombie & Fitch Co (Abercrombie & Fitch Co) Free Cash Flow

: $496 Mil (TTM As of Jan. 2024)

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Abercrombie & Fitch Co's total free cash flow for the months ended in Jan. 2024 was $274 Mil. Its total free cash flow for the trailing twelve months (TTM) ended in Jan. 2024 was $496 Mil.

Abercrombie & Fitch Co's Free Cash Flow per Share for the months ended in Jan. 2024 was $5.03. Its free cash flow per share for the trailing twelve months (TTM) ended in Jan. 2024 was $9.29.

During the past 3 years, the average Free Cash Flow per Share Growth Rate was 24.70% per year. 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 Free Cash Flow Growth Rate using Free Cash Flow per Share data.

During the past 13 years, Abercrombie & Fitch Co's highest 3-Year average Free Cash Flow per Share Growth Rate was 64.00% per year. The lowest was -61.50% per year. And the median was 9.90% per year.

Abercrombie & Fitch Co Free Cash Flow Historical Data

The historical data trend for Abercrombie & Fitch Co's Free Cash Flow 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 Annual Data

Trend

Jan15

Jan16

Jan17

Jan18

Jan19

Jan20

Jan21

Jan22

Jan23

Jan24

Free Cash Flow

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97.90

303.01

180.80

-166.91

495.63

Abercrombie & Fitch Co Quarterly Data
	Apr19	Jul19	Oct19	Jan20	Apr20	Jul20	Oct20	Jan21	Apr21	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Jan23	Apr23	Jul23	Oct23	Jan24
Free Cash Flow	Get a 7-Day Free Trial															254.57	-46.95	173.50	94.99	274.08

Abercrombie & Fitch Co Free Cash Flow Calculation

Free Cash Flow is considered one of the most important parameters to measure a company's earnings power by value investors because it is not subject to estimates of Depreciation, Depletion and Amortization (DDA). However, when we look at the Free Cash Flow, we should look from a long term perspective, because any year's Free Cash Flow can be drastically affected by the spending on Property, Plant, & Equipment (PPE) of the business in that year. Over the long term, Free Cash Flow should give pretty good picture on the real earnings power of the company.

Abercrombie & Fitch Co's Free Cash Flow for the fiscal year that ended in Jan. 2024 is calculated as

Free Cash Flow (A: Jan. 2024 )	=	Cash Flow from Operations	+	Capital Expenditure
	=	653.422	+	-157.797
	=	496

Abercrombie & Fitch Co's Free Cash Flow for the quarter that ended in Jan. 2024 is calculated as

Free Cash Flow (Q: Jan. 2024 )	=	Cash Flow from Operations	+	Capital Expenditure
	=	303.28	+	-29.196
	=	274

Free Cash Flow for the trailing twelve months (TTM) ended in Jan. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was $496 Mil.

Abercrombie & Fitch Co (NYSE:ANF) Free Cash Flow Explanation

Free Cash Flow is very close to Warren Buffett's definition of Owner's Earnings, except that in Warren Buffett's Owner's Earnings, the spending for Property, Plant, and Equipment is only for maintenance (replacement), while in the Free Cash Flow calculation, the cost of new Property, Plant, and Equipment due to business expansion is also deducted. There, Free Cash Flow is more conservative than Owner's Earnings.

In Don Yacktman's calculation of forward rate of return, he uses Free Cash Flow for the calculation. Yacktman explained the forward rate of return concept in detail in his interview with GuruFocus. Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation.

This is what Yacktman said in his March 2012 interview - when the S&P 500 was at 1400:

If the business is stable, this calculation is fairly straightforward. For instance, on the S&P 500 we would normalize earnings. We would then calculate what percentage of those earnings are not reinvested in the underlying businesses and are therefore free. Historically, for the S&P 500, this has been just under 50% of earnings. Currently, we expect the S&P to earn about 70 on a normalized basis, a number which is far below reported earnings due to our adjusting for record high profit margins. $70 X ½ / 1400 gives you a normalized free cash flow yield of approximately 2.5%.

The historical real growth rate of the S&P 500 (companies) is about 1.5%. Assuming an inflation rate of 2.5%, the forward rate of return on an investment in the S&P 500 is about 6.5% today (2.5% free cash flow yield plus 1.5% real growth plus 2.5% inflation).

For the growth part of the Forward Rate of Return calculation, GuruFocus uses the 5-year average growth rate of EBITDA per share as the growth rate, and the growth rate is always capped at 20%. For the Free Cash Flow we use per share data averaged over seven years. The reason we use seven years is because research shows that seven years is the length of the typical business cycle.

Therefore, as of Jan24, Abercrombie & Fitch Co's Forward Rate of Return (Yacktman) % is

Forward Rate of Return (Yacktman) % (Jan24)	=	Normalized Free Cash Flow	/	Price	+	5-Year EBITDA Growth Rate
	=	3.36819048	/	101.9	+	0.2
	=	23.31 %

Be Aware

Free Cash Flow within a report period can be affected by management's decisions of capital spending. Therefore, it is important to look at long term when it comes to Free Cash Flow.

Abercrombie & Fitch Co Free Cash Flow Related Terms

Thank you for viewing the detailed overview of Abercrombie & Fitch Co's Free Cash Flow provided by GuruFocus.com. Please click on the following links to see related term pages.

Abercrombie & Fitch Co (Abercrombie & Fitch Co) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » Abercrombie & Fitch Co (NYSE:ANF) » Definitions » Free Cash Flow

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Address

6301 Fitch Path, New Albany, OH, USA, 43054

Website

https://corporate.abercrombie.com

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 consumer 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.

Executives

Scott D. Lipesky	officer: SVP and CFO	6301 FITCH PATH, NEW ALBANY OH 43054
Kristin A. Scott	officer: Brand President-Hollister Co.	6301 FITCH PATH, NEW ALBANY OH 43054
Jay Rust	officer: EVP Human Resources	6301 FITCH PATH, NEW ALBANY OH 43054
Samir Desai	officer: EVP;Chief Digital&Tech Officer	6301 FITCH PATH, NEW ALBANY OH 43054
Sarah M. Gallagher	director	6301 FITCH PATH, NEW ALBANY OH 43054
Kenneth B. Robinson	director	6301 FITCH PATH, NEW ALBANY OH 43054
Gregory J Henchel	officer: SVP, Gen Cnsl & Secy	C/O HSN, INC., 1 HSN DRIVE, ST. PETERSBURG FL 33729
Fran Horowitz-bonadies	officer: President of Hollister brand	6301 FITCH PATH, NEW ALBANY OH 43054
Terry Lee Burman	director	CLARENDON HOUSE, 2 CHURCH STREET, HAMILTON D0 HM11
Helen Vaid	director	600 WEST CHICAGO AVE., STE 400, CHICAGO IL 60654
Kerrii B Anderson	director	WENDY'S INTERNATIONAL, INC, 4288 WEST DUBLIN-GRANVILLE RD., DUBLIN OH 43017
Suzanne M Coulter	director	6301 FITCH PATH, NEW ALBANY OH 43054
Charles R Perrin	director	C/O AVON PRODUCS INC, 1345 AVENUE OF THE AMERICAS, NEW YORK NY 10105-0196
Holly May	officer: SVP, Chief HR Officer	6301 FITCH PATH, NEW ALBANY OH 43054
James A Goldman	director