Abercrombie & Fitch
The retailer reported on Wednesday first-quarter net income of $3 million, or 3 cents a share, down from year-earlier earnings of $25.1 million, or 28 cents.
Abercrombie was forecast by analysts to post first-quarter profit of 2 cents a share."The deterioration in international sales trends is concerning, especially given the company's aggressive growth plans in Europe and adds further uncertainty to the story," Wells Fargo analysts wrote in a report on Wednesday. "However, the company is using other levers to deliver EPS and the depressed valuation already reflects these trends, in our view." Shares of Abercrombie & Fitch hit a 52-week low on Wednesday of $38.71. The stock's 52-week high of $78.25 was set on June 21. Abercrombie & Fitch trades at an estimated price-to-earnings ratio for next year of 8.62 times; the average for apparel retailers is 14.28. For comparison, Urban Outfitters (URBN) has a higher forward P/E of 14.8. Eighteen of the 34 analysts who cover Abercrombie rated it hold. Fourteen analysts rated the stock a buy and two gave the stock a sell rating. The stock has fallen 21.29% year to date.