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

Abercrombie & Fitch Not a Buy Yet

(Abercrombie & Fitch articles updated with additional analysis of the stock, updated stock prices, and analyst commentary.)

NEW YORK ( TheStreet) -- Don't call Abercrombie & Fitch (ANF - Get Report) a recovery story -- or a buy -- just yet.

While the teen retailer easily topped Wall Street's forecast (excluding restructuring costs related to the closure of Ruehl) and is seeing margin improvement, without its gift card promotion, things would have been worse in the fourth quarter.

"With select early spring already marked down and CEO [Mike] Jeffries charged with fixing merchandise himself, we're not expecting improvement until fall," UBS analyst Roxanne Meyer wrote in a note.

During the quarter, Abercrombie earned $47.5 million, or 53 cents a share, a 31% plunge from $68.4 million, or 78 cents, in the year-ago period for the teen retailer .

However, excluding charges related to the shuttering of the Ruehl chain, Abercrombie actually earned 91 cents, beating analysts' forecast of 87 cents a share.

In June, Abercrombie's board approved the closure of the Ruehl chain, which was sucking profit from the company.

Abercrombie sales declined 5% to $936 million from $980.8 million, while same-store sales tumbled 13%.

During Abercrombie's conference call management hinted that it could attain 15% operating margin in three years. But Wall Street Strategies analyst Brian Sozzi does not believe this is possible given all the hurdles stacked against them.
1 of 2

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
ANF $24.77 0.00%
AAPL $93.99 0.00%
FB $102.01 0.00%
GOOG $682.40 0.00%
TSLA $151.04 0.00%


Chart of I:DJI
DOW 15,973.84 +313.66 2.00%
S&P 500 1,864.78 +35.70 1.95%
NASDAQ 4,337.5120 +70.6750 1.66%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs