Ahead Of The Bell: Abercrombie & Fitch

While management has acknolwdged mistakes in clothing offerings, especially in women's dresses and knits, she said she expects "an uptick in the fashion quotient."

Abercrombie will also have an opportunity to renegotiate lower rents at 280 stores through 2011, and is "likely to play hardball," she said. Abercrombie is a mall-based store, and malls have been stricken by chain bankruptcies and are eager to prevent vacancies.

Murchison has a $34 price target on the stock. Thursday, shares rose 46 cents to $27.43 in premarket trading. Shares have traded between $13.66 and $69.17 in the past 12 months.