This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Sneak Peak: Abercrombie Poised to Fail?

NEW YORK ( TheStreet) -- Abercrombie & Fitch's (ANF - Get Report) monthly sales have been slowly (and we're talking snail-like here) improving. But will those baby steps be enough to lift the teen retailer in the third quarter?

This week at least two analysts' seemed to think so, as both Goldman Sachs and Credit Suisse upgraded the company to the equivalent of a buy rating, citing strong international sales and lower prices.

Recently, Abercrombie opened a flagship in Milan and plans to open one in Tokyo by the end of the year. It also plans to roll out 10 additional international mall-based stores this year.
Retail Roundup
Wal-Mart, TJX Face Retail Shakeup
Kohl's Modest Outlook
POLL: Which Department Store Is Best?

Same-store sales, however, still remain deep in negative territory, as Abercrombie reported a 15% plunge in October, in-line with analysts' estimates.

The Holiday Retail Trade

And while Stifel Nicolaus analyst Richard Jaffe says he sees merchandise improving, he cautions that there isn't enough fashion-forward merchandise to woo shoppers.

In addition, Abercrombie remains especially constrained as rival Aeropostale (ARO - Get Report) continues to outperform the sector.

In the third quarter, Wall Street expects Aberccrombie to earn 20 cents a share on revenue of $764.5 million. That's 72% below last year's EPS of 72 cents a share and 15% lower than last year's revenue of $896.3 million.

Investors, meanwhile, will be waiting to get word on how holiday merchandise is selling so far and what promotions are planned for the season.

-- Reported by Jeanine Poggi in New York

Follow on Twitter and become a fan on Facebook.
Copyright 2009 Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. AP contributed to this report.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
ARO $0.63 0.00%
ANF $26.71 0.00%
AAPL $117.81 0.00%
FB $105.45 0.00%
GOOG $750.26 0.00%


Chart of I:DJI
DOW 17,798.49 -14.90 -0.08%
S&P 500 2,090.11 +1.24 0.06%
NASDAQ 5,127.5250 +11.3820 0.22%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs