I did a comparison of the major denim stocks (
ANF, 
AEO, 
LEVI,
KTB, 
GES) and to me it seems that ANF is the stand-out performer among them. While KTB has a higher ROE margin, it's only due to higher leverage. What seems to separate ANF from the rest of the pack is the "Read & React" inventory model, which has led them to the highest asset turnover and highest net margin within the peer group. Surprisingly, ANF has a fwd P/E ratio of 8.8, compared to 22.6 for the S&P 500. ANF had a decent Q2 and raised their sales guidance for the full year -- despite tariff concerns. I bought a small position today, even though there's no technical setup I'd usually be interested in.
ANF, AEO, LEVI,KTB, GES) and to me it seems that ANF is the stand-out performer among them. While KTB has a higher ROE margin, it's only due to higher leverage. What seems to separate ANF from the rest of the pack is the "Read & React" inventory model, which has led them to the highest asset turnover and highest net margin within the peer group. Surprisingly, ANF has a fwd P/E ratio of 8.8, compared to 22.6 for the S&P 500. ANF had a decent Q2 and raised their sales guidance for the full year -- despite tariff concerns. I bought a small position today, even though there's no technical setup I'd usually be interested in.
