KeyBanc Initiates Coverage on Abercrombie & Fitch (ANF) with an Underweight
ANF Hot Sheet
Rating Summary:12 Buy, 16 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 16 | Down: 7 | New: 23
KeyBanc initiates coverage on Abercrombie & Fitch (NYSE: ANF) with an Underweight. Price target $20.
KeyBanc analyst says, "The Company has built a strong aspirational brand, but we worry that premium pricing hampers sales in a tough macroeconomic environment. We believe that ANF has been uniquely successful in delivering a store experience that weaves sight, sounds, and smell to teen retail. Additionally, the Company has made significant investments in ensuring that its products have superior workmanship and tactile qualities. Coupled with pricing that drives some degree of exclusivity - think $80+ hoodies - the Company sports a 60-300% price premium relative to its teen retail peers, by our estimations. Management is steadfast in disavowing promotions and value pricing in an effort to maintain the brand's cache. While we do not fundamentally disagree with this approach, we believe that it does not portend to strong sales during periods of macroeconomic weakness."
Abercrombie & Fitch Co. (A&F, through its subsidiaries, is a specialty retailer that operates stores and Websites selling casual sportswear apparel, including knit and woven shirts, graphic t-shirts, fleece, jeans and woven pants, shorts, sweaters, outerwear, personal care products and accessories for men, women and kids.
KeyBanc analyst says, "The Company has built a strong aspirational brand, but we worry that premium pricing hampers sales in a tough macroeconomic environment. We believe that ANF has been uniquely successful in delivering a store experience that weaves sight, sounds, and smell to teen retail. Additionally, the Company has made significant investments in ensuring that its products have superior workmanship and tactile qualities. Coupled with pricing that drives some degree of exclusivity - think $80+ hoodies - the Company sports a 60-300% price premium relative to its teen retail peers, by our estimations. Management is steadfast in disavowing promotions and value pricing in an effort to maintain the brand's cache. While we do not fundamentally disagree with this approach, we believe that it does not portend to strong sales during periods of macroeconomic weakness."
Abercrombie & Fitch Co. (A&F, through its subsidiaries, is a specialty retailer that operates stores and Websites selling casual sportswear apparel, including knit and woven shirts, graphic t-shirts, fleece, jeans and woven pants, shorts, sweaters, outerwear, personal care products and accessories for men, women and kids.
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