NEW YORK (TheStreet) -- Abercrombie & Fitch (ANF) shares fell -4.2% to $35.12 on Wednesday ahead of the release of the retailer's first quarter earnings results before the opening bell on Thursday.
Retailers have been hit by increasingly bad news this earnings season as Sears (SHLD), DSW (DSW) and others have reported weak earnings.
Only 44% of retailers beat analysts earnings estimates this season, while only 39% beat revenue estimates, according to a report by ETF Daily News. Investors don't seem to be confident of Abercrombie's chances of bucking that trend.
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TheStreet Ratings team rates ABERCROMBIE & FITCH as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate ABERCROMBIE & FITCH (ANF) a HOLD. The primary factors that have impacted our 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 largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and disappointing return on equity."