Following its meeting with Abercrombie & Fitch Co. (NYSE: ANF), UBS believes sales trends could improve by the fourth quarter. The firm call the
company's plan to boost sales thoughtful.
Analyst Michael Binetti noted that a new Hollister loyalty program is responsible for accelerating frequency and solid new
customer acquisition. However, the analyst believes current same-store sales trends will remain choppy due to tourism headwinds and
hot weather in the United States and Europe.
The firm also noted that the company is seeking to remodel 60 Hollister doors in 2016, close 60 underperforming stores in 2016,
looking to lower rents in malls with negative traffic and relocate to smaller stores, while also being able to retain nearly all of
the sales — all in a bid to cure its ailing U.S. stores.
Related Link: Mall
Traffic Is Actually Increasing Among Teens, According To A Major Survey
However, UBS does not see any near-term catalysts to support positive revisions to consensus estimates, as brick-and-mortar
traffic trends are expected to remain negative for the foreseeable future and the limited scope for SG&A deleveraging.
UBS maintains its Neutral rating and a $18 price target on the shares of the company.
At last check, Abercrombie & Fitch shares were down close to 2.5 percent, although volumes were below average.
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Latest Ratings for ANF
Date |
Firm |
Action |
From |
To |
Sep 2016 |
Citigroup |
Maintains |
|
Neutral |
Aug 2016 |
Stifel Nicolaus |
Downgrades |
Buy |
Hold |
Aug 2016 |
UBS |
Maintains |
|
Neutral |
View More Analyst Ratings for
ANF
View the Latest Analyst Ratings
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