Bachelder was also optimistic about her company's prospects globally, saying that not only can it double in size in the U.S., but there are many opportunities to position the brand to compete internationally and so far profits have been strong overseas as well.
When asked whether the weakness in the stock is an opportunity to buy back more shares, Bachelder reiterated that the company plans to retire $15 million to $20 million worth of stock this year, but remains committed to investing cash to grow organically. She said that AFC has delivered 22 consecutive strong quarters and the company wants to be a reliable investment for shareholders.
Cramer said while AFC may have guided expectations lower, any other restaurant chain would kill to have the growth even at the low end of AFC's guidance. This stock is a buy, not a sell, he concluded.
In his Thursday "Sell Block" segment, Cramer said he made the tough decision to add Abercrombie & Fitch (ANF) CEO Mike Jeffries to his "Mad Money" Wall of Shame, the list of the worst CEOs that need to retire and turn their companies over to new management.Cramer said in an environment where even JCPenney (JCP) had some positive things to say, Abercrombie announced hideous earnings last week and has seen its stock fall 27% for the year. While Jeffries has a great track record of successes in the past, Cramer said the aging CEO has simply lost touch with his customers, turning Abercrombie into an irrelevant brand. While the apparel retailer continues to close underperforming stores in the U.S., Cramer noted that its still building new ones overseas, this despite the fact that sales overseas also continue to erode. The company has also been horrible at managing expectations, having slashed its estimates by more than half so far this year. Abercrombie simply isn't cool anymore and the company hasn't changed with the times, Cramer said. The good news is that Jeffries' contract expires at the end of the year, and Cramer said he hopes the company fires him promptly and brings in new, younger management that understands just how bad a situation Abercrombie is now in.
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