Abercrombie shares drop on weak sales

Shares of the teen retailer sank after the company reported a 17% decline in same-store sales in November.

By TheStreet Staff Dec 3, 2009 5:10PM

TheStreet.comBy Andrea Tse, TheStreet.com

 

Shares of teen retailer Abercrombie & Fitch (ANF) took a beating Thursday after the company reported disappointing November same-store sales.

 

Abercrombie & Fitch, which operates Abercrombie Kids, Hollister and Ruehl, said same-store sales fell 17% in November from a year earlier. Total net sales decreased 8% to $245.7 million from a year ago. Hollister had the biggest decline at 23%.

 

Analyst Brian Sozzi of Wall Street Strategies says Abercrombie has been offering clothing that’s "counter-trend," against what's going on in the retail market. He calls its sweaters "a miss" this season. Sozzi has downgraded Abercrombie & Fitch to “sell” from “hold.”

 

Bing: More on Abercrombie & Fitch

 

"The [Abercrombie] comps are not there for women," Sozzi says. "They're looking for trends and Abercrombie doesn't have a lot of trend in their business."

 

Women have been looking for tailored looks created by unique designers without logos, Sozzi says. They prefer to shop at stores like Forever 21 and H&M. "Everything by brand traffic was very weak at Abercrombie and I think this is a function of teens going to American Eagle and Aeropostale," Sozzi says.

 

Abercrombie shares fell 9.6% to $36.21 a share, trailing behind rivals American Eagle Outfitters,

Gap and J. Crew Group.

 

Related Articles

 

Aeropostale shares slide after outlook

 

Black Friday's revenge: will sales slip?

 

Black Friday's winners and losers

 

0Comments

DATA PROVIDERS

Copyright © 2014 Microsoft. All rights reserved.

Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.

STOCK SCOUTER

StockScouter rates stocks from 1 to 10, with 10 being the best, using a system of advanced mathematics to determine a stock's expected risk and return. Ratings are displayed on a bell curve, meaning there will be fewer ratings of 1 and 10 and far more of 4 through 7.

118
118 rated 1
270
270 rated 2
472
472 rated 3
714
714 rated 4
624
624 rated 5
608
608 rated 6
623
623 rated 7
445
445 rated 8
319
319 rated 9
125
125 rated 10
12345678910

Top Picks

SYMBOLNAMERATING
AAPLAPPLE Inc10
ATVIACTIVISION BLIZZARD Inc10
BIDUBAIDU Inc10
BMYBRISTOL-MYERS SQUIBB CO.10
CELGCELGENE CORP10
More

VIDEO ON MSN MONEY

ABOUT

Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.

Contributors include professional investors and journalists affiliated with MSN Money.

Follow us on Twitter @topstocksmsn.