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Abercrombie And Fitch Essay

408 Words2 Pages

Abercrombie & Fitch, a clothing retailer specifically targeted towards young consumers, will be reporting 3Q2016 earnings tomorrow at 8:30AM. The company has had problems keeping up with competition and is focusing on returning to its roots of glory through a comprehensive brand revival process. Analysts are holding mixed opinions on whether or not a positive earnings surprise is probable, with the vast majority calculating year over year declines in revenue and EPS. The Estimize consensus is anticipating a favorable EPS of $0.21 and revenue of $867.7 million as Wall Street Analysts are foreseeing EPS of $0.19 and revenue of $869 million.

Though sales figures have not been ideal, the Hollister stores have helped comps mainly in Asia and …show more content…

The logo reduction is a smart move, as often times, select shirts and pants would have the massive moose displayed. Trendier fashion items usually do not contain large logos.

For Abercrombie & Fitch to show investors substantive growth, the time has come to capitalize on the holiday season. Retail chains targeting teens like Gap and Aeropostale have been suffering and have experienced ridiculous declines in share prices. Gap is down over 35% and Aeropostale shares are currently trading at a mere $0.70. The declines in all three companies including Abercrombie highlight the fact that teens are not spending on clothing anymore. With Black Friday coming up sweet in-store and online deals on “cool” clothes could help separate the Ohio based retailer from its competition.

Furthermore, an H&M type model where selling cheap clothes that are fashionable and stylish and ultimately could be repurchased again, is the route to go. There is a demand for this model, as consumers want to spend less time on shopping and more time engaging in other activities. Senior management has made hints of a mobile marketing campaign throughout the coming seasons. The campaign will instill the Abercrombie brand lines and is ultimately set out to help produce the consumer base the firm so desperately wants to

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