Abercrombie’s high-risk strategy

In this edition of Investor Beat: A & F won’t stock sizes for larger women. But is that a good approach, especially for investors?

By Motley Fool Investor Beat May 7, 2013 5:05PM
Shares of Abercrombie & Fitch (ANF) rose Tuesday morning after several analyst upgrades. The retailer has lagged the market in recent years.  
 
In the past, Abercrombie & Fitch CEO Mike Jeffries said the company wants to be exclusionary and go after "the cool kids". And keeping with that policy, the retailer doesn't offer XL sizes in women's clothing.  Does that strategy make sense for investors?   In our lead story,  Investor Beat talks about the business of cool -- and the future of Abercrombie & Fitch.
File photo of a shopper carrying an Abercrombie & Fitch bag in Phoenix, Arizona on Nov. 14, 2011 (© Ross D. Franklin/AP Photo)Also making market news and covered in Investor Beat:
  • DirectTV (DTV) hits a new all-time high.  The satellite TV provider now has more than 20 million subscribers in the US.
  •  Bank of America (BAC) hits a two-year high in the wake of its $1.7 billion settlement with mortgage insurer MBIA.
  •  Mercadolibre’s (MELI) first-quarter revenue rises 23% and shares hit an all-time high. 
  •  First Solar (FSLR) loses some energy on lower-than-expected earnings.
And we close the show with two stocks to watch:  Green Mountain Coffee Roasters (GMCR) and the internet-based bank Bofl Holding (BOFI).

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4Comments
May 7, 2013 5:39PM
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The really "cool kids" are on morgue slabs. The ones A&F appeals to are warm but similarly brain dead.

 

 

May 7, 2013 5:52PM
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The stores have a "Stench" that literally prevents me from entering the store past the first 5 ft. before my eyes and nose begin to run, so you will not see me in an A&F store or retail item..Can't get by the "Stench" to buy anything...
May 7, 2013 6:17PM
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If the A&F CEO had a teenage daughter with an eating disorder he would rethink his strategy.  He is obviously clueless about the increasing problem of eating disorders in the US and he is a contributor to this problem.  I will never buy anything for my daughter's in one of his stores.
May 7, 2013 5:58PM
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I tell my kids to be on the "B" team socially...being cool and "A" team socially is fraught with perils, stress, and downfalls!   Cool and popular isn't all its cracked up to be...been there done that!
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