KeyBanc Cuts Price Target on Abercrombie & Fitch (ANF), LT Global Growth Still Present
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Price: $107.08 +1.96%
Rating Summary:
14 Buy, 24 Hold, 5 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
14 Buy, 24 Hold, 5 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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KeyBanc is reaffirming its Buy rating on shares of Abercrombie & Fitch (NYSE: ANF), but is cutting its price target from $74 to $67.
The company reported its third quarter results below expectations with earnings of $0.57 per share while the Street was estimating $0.71 per share. The firm notes ANF's global growth remains solid over the long-term, although it is clear that adult flagships do not work in all regions.
Domestically, the firm predicts management will be more aggressive in store closures over the next 12-24 months.
An analyst at KeyBanc comments, "Management may have erred in the delicate balance between comps and gross margin in the U.S. stores. The Company had flat AURs despite double-digit AUC costs. We think some of this may have been a competitive response to Aeropostale’s (NYSE: ARO) inventory liquidations, but overall we think the business is still on the right general trajectory."
The firm is reducing its FY11 and FY12 EPS estimates from $3.15 and $4.68 to $2.78 and $4.30.
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 $48.10 yesterday.
The company reported its third quarter results below expectations with earnings of $0.57 per share while the Street was estimating $0.71 per share. The firm notes ANF's global growth remains solid over the long-term, although it is clear that adult flagships do not work in all regions.
Domestically, the firm predicts management will be more aggressive in store closures over the next 12-24 months.
An analyst at KeyBanc comments, "Management may have erred in the delicate balance between comps and gross margin in the U.S. stores. The Company had flat AURs despite double-digit AUC costs. We think some of this may have been a competitive response to Aeropostale’s (NYSE: ARO) inventory liquidations, but overall we think the business is still on the right general trajectory."
The firm is reducing its FY11 and FY12 EPS estimates from $3.15 and $4.68 to $2.78 and $4.30.
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 $48.10 yesterday.
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