#2 - Abercrombie & Fitch (NYSE:ANF)
Abercrombie & Fitch (NYSE: ANF) - A&F is trying to beat the clock, but reality may be working against them. They reported solid fourth-quarter sales as part of the fourth quarter that saw a robust 5% gain in year-over-year, same-store sales. But is that growth sustainable? Analysts are not convinced, and more importantly, consumers may not be either. The problem for A&F, which also owns the brand name Hollister, is that they are trying to achieve growth while shrinking their retail footprint. As a store that has always relied on teens in malls, the idea that they will have a net loss of about 50 stores nationwide makes it hard to see this as a sustainable strategy. Although a survey suggested that teens and young adults are looking to spend more on consumer goods this holiday season, it's unclear if that will translate to another strong holiday season. If it does, A&F may be able to play for more time, but with a stock that is currently trading at about 30% off highs reached just a couple months ago, there seems to be no real momentum for traders.
About Abercrombie & Fitch
Abercrombie & Fitch Co, through its subsidiaries, operates as an omnichannel retailer in the United States, Europe, the Middle East, Asia, the Asia-Pacific, Canada, and internationally. The company offers an assortment of apparel, personal care products, and accessories for men, women, and kids under the Abercrombie & Fitch, abercrombie kids, Hollister, and Gilly Hicks brands.
Read More - Current Price
- $154.56
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 5 Buy Ratings, 3 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $179.50 (16.1% Upside)
