Nomura Securities Maintains a 'Neutral' on Abercrombie & Fitch (ANF); Q4 Review
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Price: $108.13 -0.63%
Rating Summary:
15 Buy, 23 Hold, 5 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
15 Buy, 23 Hold, 5 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Nomura Securities maintains a 'Neutral' on Abercrombie & Fitch (NYSE: ANF) price target of $44.00.
Analyst, Paul Lejuez, said, "Mgmt sounded extremely confident on their 4Q call, particularly in their int’l business, giving metrics that helped ease market concerns, and driving the stock higher. Mgmt indicated that Hollister Europe stores represent 2/3 of the European sales base and comped positive in 4Q11. Mgmt noted that the 62 European Hollisters avg $10MM/store in sales on an annualized basis. We believe this misses the point on the trajectory. ANF closed ~65 stores in F10 and ~70 stores in F11 (and may close another 180 by F15). Yet unallocated overhead expenses still increased 10% in F11. Mgmt has based its $3.50-$3.75 guidance on a flat comp. We wonder if this is realistic given that they will manage inventory much more tightly in 2H12. Comp increases in the U.S. in F11 were at least in part driven by big inventory increases. We model total comps down 2% in F12. Our EPS estimates are unchanged at $3.41 for 2012."
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 $48.30 yesterday.
Analyst, Paul Lejuez, said, "Mgmt sounded extremely confident on their 4Q call, particularly in their int’l business, giving metrics that helped ease market concerns, and driving the stock higher. Mgmt indicated that Hollister Europe stores represent 2/3 of the European sales base and comped positive in 4Q11. Mgmt noted that the 62 European Hollisters avg $10MM/store in sales on an annualized basis. We believe this misses the point on the trajectory. ANF closed ~65 stores in F10 and ~70 stores in F11 (and may close another 180 by F15). Yet unallocated overhead expenses still increased 10% in F11. Mgmt has based its $3.50-$3.75 guidance on a flat comp. We wonder if this is realistic given that they will manage inventory much more tightly in 2H12. Comp increases in the U.S. in F11 were at least in part driven by big inventory increases. We model total comps down 2% in F12. Our EPS estimates are unchanged at $3.41 for 2012."
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 $48.30 yesterday.
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