Buckingham Research Maintains 'Neutral' on Abercrombie & Fitch (ANF), Lowers EPS Estimates

September 30, 2008 12:37 PM EDT

Buckingham Research maintains 'Neutral' rating on Abercrombie & Fitch (NYSE: ANF), lowers earnings estimates.

Buckingham analyst says, "Recent channel checks indicate that still no newness in women's tops coupled with weak demand market wide continues to pressure ANF’s comparable store sales trend...Believe September comps are running down in the low double digits consistent with (11%) August trend...We do not expect to see any improvement until newness arrives with holiday floorset weeks 3-4 of October which should help improve (DD) trend into holiday season. We do not think there is a problem with the brand or pricing...Reducing 3Q, 4Q, 2008, 2009 EPS estimates to reflect expectation of diminished consumer demand, high SG&A due to international expansion (which will not add to top line until 4Q09 outside of UK Hollister, Toronto and Vancouver in 4Q08)."

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.

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