Have You Offloaded Abercrombie (ANF) From Your Portfolio?
Zacks Investment Research | Jun 22, 2016 08:55AM ET
Abercrombie & Fitch Co. (NYSE:ANF) is one such stock that is struggling to find a place in investors’ portfolio. Why is it so?
Shares of this specialty retailer of casual apparel have nosedived roughly 30% year to date and there seems to be no catalyst to help it regain the lost momentum. Moreover, the company currently carries a Zacks Rank #5 (Strong Sell). This clearly implies that analysts covering the stock are not convinced about Abercrombie’s performance in the near future.
Why the Stock is Out of Favor Now
After three straight quarters of positive earnings surprise, Abercrombie slipped to a loss in first-quarter fiscal 2016. Also, the loss was wider than the Zacks Consensus Estimate. Moreover, the company’s sales missed expectations and fell year over year owing to soft traffic trends in international markets as well as its U.S. flagship and tourist stores.
Management expects the fiscal second quarter to remain challenging, which will result in lower comparable store sales and gross margin. (Read: Original post
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