NEW YORK (TheStreet) -- Shares of Abercrombie & Fitch (ANF) - Get Report were sliding in early morning trade on Wednesday as Stifel downgraded the stock to "hold" from "buy" in a note cited by the Fly.
The rating decrease followed the New Albany, OH-based fashion retailer's lower-than-expected financial report for the 2016 second quarter. Abercrombie posted a wider loss per share yesterday than analysts' estimates.
Stifel said that there is a "lack of visibility' in the near-term improvement for the company following the report.
Abercrombie warned that comparable-store sales could continue to face "significant headwinds" for the remainder of the year, and Stifel noted that this could be because the company's merchandise is not appealing to customers.
Additionally, the firm added that new marketing campaigns are failing to drive traffic.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
TheStreet Ratings rated this stock as a "hold" with a ratings score of C.
The company's strengths can be seen in multiple areas, such as its compelling growth in net income, largely solid financial position with reasonable debt levels by most measures and good cash flow from operations. However, as a counter to these strengths, we find that the company's return on equity has been disappointing.
You can view the full analysis from the report here: ANF