May 13 (Reuters) - Jefferies and Co upgraded Abercrombie & Fitch Co (ANF.N) to "buy" from "hold," and said Wall Street has already drastically cut its earnings estimates for the teen clothing retailer and fundamentals are about to trough.
"With Street estimates down big, sentiment already negative, compares easing in second half of 2009/2010, and a war chest of cash, we think risk/reward is favorable," Jefferies wrote in a note to clients. Despite soft demand currently, the brokerage said it believes the Abercrombie and Hollister brands are some of the best in retail. "We believe the market is not appreciating the company's international potential, which we peg at a $1 billion revenue opportunity," the brokerage said. It who raised its price target on the stock to $35 from $22. Shares of the New Albany, Ohio-based company were trading up at $26.09 before the bell. They had closed at $25.61 Tuesday on the New York Stock Exchange. (Reporting by Poojya Trivedi in Bangalore; Editing by Anne Pallivathuckal) |
Abercrombie & Fitch Co posted a higher-than-expected quarterly profit as it avoided steep discounts over the holidays and said it would lean more heavily on international markets for growth. 
U.S. teen apparel retailer Abercrombie & Fitch posted a much better-than-expected quarterly profit helped by cost cuts and said it plans to speed up its expansion in more profitable markets overseas, sending shares up 6 percent. 
Fierce is the battle against a pop diva's perfume. Abercrombie & Fitch, the apparel chain known for its racy marketing and casual look, has sued Beyonce Knowles to try and stop the singer from launching a new line of fragrances. 
Citigroup cut teen apparel retailer Abercrombie & Fitch Co to "sell" from "hold," saying sales shortfalls at the company will likely lead to continued negative earnings revisions. 
Abercrombie & Fitch Co reported a quarterly loss versus a year-earlier profit as sliding sales pummeled the teen retailer. 
Abercrombie & Fitch Co said on Wednesday 17 June it will close its money-losing Ruehl chain, sending its shares up 4.6 percent on relief the clothing retailer will soon focus on core brands. 
Abercrombie & Fitch Co's recent clearance activity with compelling discounts is leading to increased store traffic and sales, said FBR Capital Markets, while upgrading the apparel retailer a notch to "outperform". 
Retailers J.C. Penney Co Inc and Abercrombie & Fitch Co posted results that showed consumers were still wary about buying non-essential items. 
Abercrombie & Fitch Co is laying off 170 workers at its Ohio headquarters, a company official said on Friday 1 May, as the clothing retailer seeks to cut costs in a recession. 
Abercrombie & Fitch Co (ANF.N) has laid off about 50 employees at its headquarters, a spokesman said on Friday, as part of what the teen retailer called its ongoing focus on managing expenses in the recession. 
Abercrombie & Fitch (ANF.N) has kept its cool in a recession, selling its pricey clothing at a premium. But a steady sales decline is making investors argue the brand must be practical -- and start to discount. 
U.S. teen apparel retailer Abercrombie & Fitch Co named advertising agency executive Jonathan Ramsden as its new chief financial officer on Friday, erasing a degree of uncertainty ahead of the key holiday shopping season. 
J.C. Penney Co Inc and Abercrombie & Fitch Co reported quarterly profits that beat Wall Street expectations on Friday, but came up short in their earnings forecasts, joining other U.S. 
