Abercrombie & Fitch vs Victoria's Secret
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KIRA’s take AI analyst
I put Abercrombie & Fitch and Victoria's Secret side by side, using each one’s latest annual report. Here is what stands out:
- Victoria's Secret is the larger business, with $6.6B of revenue in fiscal 2025 against $5.3B for Abercrombie & Fitch.
- Abercrombie & Fitch grew revenue faster (6.4%, against 5.2%).
- Abercrombie & Fitch kept more of each dollar of sales as operating profit (13.3% operating margin, against 4.1%).
- Abercrombie & Fitch turned more of its sales into free cash flow (7.2% FCF margin, against 4.8%).
- Abercrombie & Fitch earned a higher return on the capital invested in it (91.0%, against 17.7%).
- Investors pay more for each dollar of Victoria's Secret’s earnings: a P/E of 21.1x against 14.2x for Abercrombie & Fitch.
Who comes out ahead
Of the 10 measures where higher (or lower) is clearly better, how many each company leads.
Abercrombie & Fitch
ANF
9/10
Revenue growth5-year growthOperating marginNet marginFCF marginReturn on capitalReturn on equityNet debt / EBITDAShare count change
Victoria's Secret
VSXY
1/10
Piotroski F-score
Side by side
Best in the row
| Latest fiscal year | ANF FY25 | VSXY FY25 |
|---|---|---|
| Size | ||
| Market cap | $7.3B | $8.0B |
| Revenue | $5.3B | $6.6B |
| Free cash flow | $378M | $312M |
| Net income | $507M | $161M |
| Growth | ||
| Revenue growth | 6.4% | 5.2% |
| 5-year growth | 11.0% | 3.9% |
| Share count change | −8.5% | 2.5% |
| Profitability | ||
| Gross margin | — | 36.4% |
| Operating margin | 13.3% | 4.1% |
| Net margin | 9.6% | 2.5% |
| FCF margin | 7.2% | 4.8% |
| Return on capital | 91.0% | 17.7% |
| Return on equity | 37.0% | 21.5% |
| Balance sheet | ||
| Net debt | −$785M | $457M |
| Net debt / EBITDA | −0.9x | 0.9x |
| Dividends and buybacks | $451M | $0.0M |
| Valuation & quality | ||
| P/E | 14.2x | 21.1x |
| Piotroski F-score | 5 | 6 |
Ten years
Revenue
Operating margin
Free cash flow
Return on capital
Each company's latest fiscal year; fiscal years end in different months. The best value in each row is highlighted where higher (or lower) is clearly better. Not investment advice.