This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Sneak Peak: Abercrombie Poised to Fail?

Stocks in this article: ANF

NEW YORK ( TheStreet) -- Abercrombie & Fitch's (ANF) 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) 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 TheStreet.com on Twitter and become a fan on Facebook.

Copyright 2009 TheStreet.com Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. AP contributed to this report.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,356.87 +288.00 1.69%
S&P 500 2,012.89 +40.15 2.04%
NASDAQ 4,644.3120 +96.4780 2.12%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs