BWS Financial Comments on Michael Kramer's Departure from Abercrombie & Fitch (ANF)

July 25, 2008 9:30 AM EDT

On July 24th, Abercrombie & Fitch's (NYSE: ANF) CFO, Michael Kramer, announced his resignation.

BWS Financial commented and said, "The news of Mr. Kramer’s departure comes at a time when the retailer is experiencing a decline in same store sales and facing a tough retail market. The opening left by Mr. Kramer’s departure is likely to become an overhang for ANF shares in the short-term. The news adds fuel for our reasoning to have a Sell rating on ANF shares. ANF has been able to post an increase in revenue through new store openings to offset the weakness in stores already open for more than a year. Mr. Kramer was the face of ANF to the Street and his departure could make some investors uncomfortable with owning shares depending on who replaces him.. We continue to consider the macroeconomic trends to have an impact on ANF and extend the timeframe before the Company sees same-store sales recover at their stores."

BWS Financial has a Sell rating on Abercrombie & Fitch.

Abercrombie & Fitch Co. operates as a retailer of casual apparel for men, women, and children in the United States, United Kingdom, and Canada.

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