Oppenheimer Maintains Perform On Abercrombie As Structural Challenges Persist

Oppenheimer analyst Anna Andreeva maintained a Perform rating on shares of Abercrombie & Fitch (NYSE:ANF) with a price target of $30, following the company’s third-quarter results.

Andreeva wrote, “Despite SG&A dollars $200M lower y/y, ANF’s EPS is down 20% this year, with year 3 of negative comps. We think November/Black Friday improvement promotionally driven (trends choppy, lull now ahead of Christmas) and likely short lived internationally (Black Friday weekend in early adoption in UK) as brand repositioning takes time, especially as international trajectory remains uncertain. Reduction in logo hurt comps by 12 points, with fashion comping up slightly (despite much bigger investment in fashion)–logo headwind abates in 1H15 and should neutralize in 2H15, although 1) fashion is new and hence should be positively comping; 2) next year ANF will have to lap positive results in fashion as it evolves as a fashion retailer.”

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Anna Andreeva has a total average return of -0.7% and a 40.0% success rate. Andreeva has a -12.0% average return when recommending ANF, and is ranked #2556 out of 3395 analysts.

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