This Retail Stock Is Down 10% in a Year Despite Record Revenue. A Fund Just Cut Its Stake
Key Points
Nicholas Investment Partners sold 109,532 shares of Abercrombie & Fitch Co. in the first quarter; the estimated transaction value was $10.65 million (based on average Q1 2026 pricing).
Meanwhile, the net position value declined by $14.50 million, reflecting share sales and price movement.
Post-trade, the fund held 20,665 ANF shares valued at $1.89 million.
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On May 15, 2026, Nicholas Investment Partners disclosed selling 109,532 shares of Abercrombie & Fitch Co. (NYSE:ANF), an estimated $10.65 million trade based on quarterly average pricing.
What happened
According to a recent SEC filing dated May 15, 2026, Nicholas Investment Partners sold 109,532 shares of Abercrombie & Fitch Co. during the first quarter. The estimated transaction value, calculated using the average unadjusted closing price for the period, was $10.65 million. The value of the fund’s position changed by $14.50 million over the quarter, reflecting both share sales and share price movement.
What else to know
- Top holdings after the filing:
- NYSE:BWXT: $53.55 million (4.32% of AUM)
- NASDAQ:INSM: $29.85 million (2.41% of AUM)
- NASDAQ:KTOS: $27.56 million (2.23% of AUM)
- NYSE:GEV: $26.54 million (2.14% of AUM)
- NASDAQ:RVMD: $25.40 million (2.05% of AUM)
- As of May 14, 2026, ANF shares were priced at $72.32, down 10% over the past year and underperforming the S&P 500 by 35 percentage points.
Company overview
| Metric | Value |
|---|---|
| Revenue (TTM) | $5.27 billion |
| Net income (TTM) | $506.92 million |
| Price (as of market close May 14, 2026) | $72.32 |
| One-year price change | (10%) |
Company snapshot
- ANF offers apparel, personal care products, and accessories under multiple brands, including Abercrombie & Fitch, Hollister, abercrombie kids, Gilly Hicks, Moose, Seagull, and Social Tourist.
- The brand generates revenue through a combination of company-operated retail stores, e-commerce platforms, and third-party wholesale, franchise, and licensing arrangements.
- It targets men, women, and children globally through operations in North America, Europe, Asia, Canada, the Middle East, United States, and internationally.
Abercrombie & Fitch Co. is a global specialty retailer with a diverse portfolio of brands and a multi-channel distribution strategy. The company leverages its established retail footprint and digital platforms to reach a broad customer demographic.
What this transaction means for investors
Abercrombie stock is still coming off several years of huge gains. After all, it's still up 71% over the past five years despite collapsing by more than 60% since mid-2024. However, investors have become more cautious as growth moderates and margins compress.
The company reported record annual sales of $5.27 billion for fiscal 2025, up 6% year over year, while fourth-quarter sales climbed 5% to $1.67 billion. Hollister remained the standout, posting 15% full-year sales growth, while the Abercrombie brand itself declined 1%. Management also returned $450 million to shareholders through buybacks last year, reducing shares outstanding by 11%. But at the same time, operating margin slipped to 13.3% from 15.0%, showing the company is investing more aggressively to sustain growth.
Now, the key question is whether Abercrombie can keep evolving from a turnaround story into a durable global brand operator. Upcoming earnings on May 27 could offer a clearer read on whether demand trends are stabilizing after the recent stock pullback.
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Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends BWX Technologies, GE Vernova, and Kratos Defense & Security Solutions. The Motley Fool recommends Abercrombie & Fitch. The Motley Fool has a disclosure policy.
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