NEW YORK (TheStreet) -- Shares of Abercrombie & Fitch (ANF) - Get Report are down by 2.46% to $20.63 in pre-market trading on Friday, as BMO Capital Markets decreased its price target on the stock to $20 from $26 and maintained its "market perform" rating.
Yesterday, the New Albany, OH-based specialty retailer reported weak 2016 first quarter results, leading shares of its stock to retreat and the firm to adjust its price target.
Abercrombie reported a net loss of 59 cents per share on revenue of $685.48 million, missing Wall Street estimates for a loss of 51 cents per share on revenue of $710.26 million for its first quarter. The company's comparable store sales slid by 4%, driven by an 8% decline at Abercrombie store locations.
"The quarter was weighed down primarily by a store traffic fall-off in international markets. While the turnaround is under way, the traction on the turnaround is pushed out, in our view, given the levels of investment spending, coupled with low visibility on improvement in international traffic," BMO analysts said in an investor note.
BMO analysts added that they expected a loss of 50 cents per share, compared to Wall Streets' estimates of 51 cents per share.
Separately, TheStreet Ratings rated Abercrombie & Fitch as a "hold" with a score of C+.
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 has this to say about the recommendation:
The primary factors that have impacted this rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks.
The company's strengths can be seen in multiple areas, such as its increase in net income, largely solid financial position with reasonable debt levels by most measures and expanding profit margins.
However, as a counter to these strengths, TheStreet Ratings also finds weaknesses including disappointing return on equity and weak operating cash flow.
You can view the full analysis from the report here: ANF