Brean Murray Carret & Co. Downgrades Abercrombie & Fitch (ANF) to Hold; Lowering Estimates

Brean Murray Carret & Co. downgraded Abercrombie & Fitch (NYSE: ANF) from Buy to Hold.

Brean analyst says, "We are moving to the sidelines on ANF and reducing our rating to Hold and cutting our already below consensus 4QFY12 and FY13 EPS projections for Abercrombie & Fitch, as the Holiday comp results from the company’s teen sector domestic competitors confirmed material margin declines in the space and the economic news from Abercrombie & Fitch’s key international expansion countries (Canada and United Kingdom) remains disheartening. Further, we believe management will, in their 4QFY12 conference call, have to retreat from their $4.75 EPS goal for FY13, which will further weaken the company’s credibility with ANF investors, who are already reeling from highly unexpected weak international results in 3Q."

"Our new 4QFY12 and FY13 EPS projections of $1.15 (from $1.32) and $4.00 (from $4.25) are now $0.42 and $0.23, respectively, below consensus."

For an analyst ratings summary and ratings history on Abercrombie & Fitch click here. For more ratings news on Abercrombie & Fitch click here.

Shares of Abercrombie & Fitch closed at $44.91 yesterday.

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