Retail Loser: Abercrombie & Fitch
Citi cut the teen retailer's rating to sell from hold, saying it will continue to experience deteriorating same-store sales.
Shares of the company tumbled 6% in morning trading to $29.06.
In August, Abercrombie's comparable sales plunged 29%, drastically missing the 23.9% tumble expected by analysts.In comparison, rivals Aeropostale (ARO) beat Wall Street's forecast, rising 9% during the month, while American Eagle Outfitters (AEO) fell 7%, although it still managed to surpass the 9.4% expected. Abercrombie's problems are bigger than pricing and new merchandise, analyst Kimberly Greenberger wrote in a research note. The company's "proactive promotional stance during back-to-school shopping season is not supporting improved sales productivity," she wrote. Greenberger believes Abercrombie's sales misses will force the company to continue to lower its earnings-per-share forecasts. -- Reported by Jeanine Poggi in New York. Follow TheStreet.com on Twitter and become a fan on Facebook.
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