Abercrombie & Fitch Has a Series of Challenges Ahead, but One Is Big

Abercrombie & Fitch has had a challenging 2014, made so by teens favoring fashionable low price apparel at the likes of H&M, Forever 21, and Zara. The writing on the wall is clear: the former in-demand retailer may have to close more stores in 2015 than the 60 it plans to shutter in 2014. The explanation why is that it has to reduce its costs due to sluggish sales. But investors have to keep in mind the reason why Abercrombie & Fitch is retreating. Fast fashion retailers continue to open up new stores and remodel older locations. TheStreet's Brian Sozzi explains what Abercrombie & Fitch is facing ahead.