hollister clothing attributes its profit increase to a higher price markups than last year. Also, the company noted that it suffered fewer losses from theft than in the past.
This winter, Abercrombie & Fitch is "featuring fleece that is of heavier weight than other teen retailers," said Friedman, Billings, Ramsey analyst Adrienne Tennant, who said she believes sales of these products may disproportionately benefit the company heading into the coldest months of the year. Tennant also noted that abercrombie outlet has done a solid job of managing inventory levels, a key concern in a weakening economy.
According to Thomas Filandro of Susquehanna Financial Group, sales of men's apparel at Abercrombie & Fitch are climbing above those of women's clothing. For the month of October, men's same-store sales climbed 7% to 9% while women's declined 1% to 3%.
Morgan Stanley analyst Michelle Clark "applauds" Abercrombie & Fitch's execution during a difficult selling period. While Clark expects shares of the retailer to rise Wednesday on strong results, she notes that "much of the good news is already priced in."
2009年10月18日星期日
2009年10月14日星期三
More on retail stocks
Now there is no denying that abercrombie and fitch has been a victim of the push toward a new frugality in America. The best measure of this is that the all-important same-store sales metric fell 30% over the past three months. But what we’ve also seen in the case of abercrombie is a bit of a backlash against the company’s self-portrayal.
Last fall the ChangeWave Alliance Research Network conducted a survey that focused on consumer retail buying habits. Respondents were asked which retail stores they were least likely to shop at, and why.
At the top of the list was abercrombie outlet . Now, it wasn’t the company’s high prices relative to lower-cost alternatives such as Aeropostale (ARO) and American Eagle Outfitters (AEO) that caused consumers to roil at the prospect of patronage. The problem was, as one respondent wrote, the “immoral advertising and the message it sends to teens.”
Last fall the ChangeWave Alliance Research Network conducted a survey that focused on consumer retail buying habits. Respondents were asked which retail stores they were least likely to shop at, and why.
At the top of the list was abercrombie outlet . Now, it wasn’t the company’s high prices relative to lower-cost alternatives such as Aeropostale (ARO) and American Eagle Outfitters (AEO) that caused consumers to roil at the prospect of patronage. The problem was, as one respondent wrote, the “immoral advertising and the message it sends to teens.”
2009年10月13日星期二
Abercrombie's luxury-priced strategy
Some analysts said abercrombie and fitch luxury-priced strategy delivers stronger cash than its rivals -- despite the
sales decline. While cash flow from operations fell 40% last year, to $490.8 million, it far outstripped the
$202.1 million generated by Aeropostale. The company abercrombie outlet ended its fiscal year in January with $522.1 in cash and
just $100 million in debt.
But a year of sharp sales declines could put the company in a precarious position, Stifel Nicolaus's Mr. Jaffe
said. He believes the company is trying to ride out the recession, relying on its cash to support the stance.
"The feeling is: We've got the cash, abercrombie we've got the brand -- the worst thing we could do is act like there's a
fire sale," Mr. Jaffe says. "It's not a question of survivability at this point. It's a question of returning
to historical levels of viabilit
sales decline. While cash flow from operations fell 40% last year, to $490.8 million, it far outstripped the
$202.1 million generated by Aeropostale. The company abercrombie outlet ended its fiscal year in January with $522.1 in cash and
just $100 million in debt.
But a year of sharp sales declines could put the company in a precarious position, Stifel Nicolaus's Mr. Jaffe
said. He believes the company is trying to ride out the recession, relying on its cash to support the stance.
"The feeling is: We've got the cash, abercrombie we've got the brand -- the worst thing we could do is act like there's a
fire sale," Mr. Jaffe says. "It's not a question of survivability at this point. It's a question of returning
to historical levels of viabilit
2009年9月28日星期一
Get Trendy With The Abercrombie Wolf Jaw Jacket
Jackets are one of those apparels which are equally abercrombie and fitch popular between men and women. Everybody wants to wear that jacket which has good stuff and which can be able to provide warmer atmosphere to the whole body. In this manner, majority of people like to buy branded jackets so that they can obtain the desirable quality and stuff. When it comes to choose the best brand for jackets, abercrombie and fitch wolf jaw hoodie jacket is on top of the list. This jacket has outstanding quality because modern techniques have been implemented to get it’s outclass outlook. This type of jacket, you will surely get in the market but you will not able to obtain the same quality.
There are myriad of designs you can have in the jacket. Some jackets are with hoods and some are without hoods. But it’s the specialty of abercrombie and fitch wolf jaw jacket that it comes with the hood which provides stylish look to not only your personality but also your winter goes according to your own requirement. If you will talk about its stuff then you will be happy to know that a great combination of cotton and polyester has been used in the jacket to make it more comfortable and convenient for the customers.
If you are one of those men who have to go outside most of the time in winters for your office work or for your own business then you should surely purchase mens abercrombie and fitch wolf jaw hoodie jacket. While wearing this jacket, you will never feel chilled atmosphere outside. Its fur style makes it out of this world and you will like to wear it most of the time in order to make your friends jealous. Do you think, abercrombie and fitch you can get any jacket which is providing both high quality and warmer feature at the same time?
There are myriad of designs you can have in the jacket. Some jackets are with hoods and some are without hoods. But it’s the specialty of abercrombie and fitch wolf jaw jacket that it comes with the hood which provides stylish look to not only your personality but also your winter goes according to your own requirement. If you will talk about its stuff then you will be happy to know that a great combination of cotton and polyester has been used in the jacket to make it more comfortable and convenient for the customers.
If you are one of those men who have to go outside most of the time in winters for your office work or for your own business then you should surely purchase mens abercrombie and fitch wolf jaw hoodie jacket. While wearing this jacket, you will never feel chilled atmosphere outside. Its fur style makes it out of this world and you will like to wear it most of the time in order to make your friends jealous. Do you think, abercrombie and fitch you can get any jacket which is providing both high quality and warmer feature at the same time?
2009年9月27日星期日
Abercrombie & Fitch Plans to Lower Prices Again
The Wall Street Journal reports that abercrombie and fitch is looking to cut prices more this fall.
"Consumer spending patterns domestically continue to be dictated by abercrombie and fitch cost and value propositions, and this is clearly a headwind for our premium brands," Chief Executive Michael Jeffries said during a conference call.
The consumer slowdown is forcing abercrombie and fitch, of New Albany, Ohio, to reduce prices after the company has spent much of the economic downturn with premium pricing in place.
"We are planning to deliver greater reductions in [average retail prices] for the fall season, but we will continue to review pricing on an ongoing basis," Mr. Jeffries said.
abercrombie and fitch saw sales plunge 23% and stores open at least a year fall 30% in its second quarter. By cutting prices and running sales they should be able to lure more shoppers into abercrombie and fitch stores.
"Consumer spending patterns domestically continue to be dictated by abercrombie and fitch cost and value propositions, and this is clearly a headwind for our premium brands," Chief Executive Michael Jeffries said during a conference call.
The consumer slowdown is forcing abercrombie and fitch, of New Albany, Ohio, to reduce prices after the company has spent much of the economic downturn with premium pricing in place.
"We are planning to deliver greater reductions in [average retail prices] for the fall season, but we will continue to review pricing on an ongoing basis," Mr. Jeffries said.
abercrombie and fitch saw sales plunge 23% and stores open at least a year fall 30% in its second quarter. By cutting prices and running sales they should be able to lure more shoppers into abercrombie and fitch stores.
2009年9月23日星期三
Skimpy Profits Pressure Abercrombie's Pricing Attitude
The clock is ticking on abercrombie and fitch.'s strategy of selling high-priced teen clothing as the recession erodes sales and profit margins, and competitors outrun it.
The New Albany, Ohio, company, which is expected Friday to report a quarterly loss of seven cents a share excluding charges, has refused to offer deep discounts, allowing lower-priced rivals such as Aeropostale Inc. and American Eagle Outfitters Inc. to build sales and finance attacks on abercrombie and fitch children's and young adults' sales.
Aeropostale has posted increases in sales at stores open at least a year of 11% and 12% for the first and second quarters of this year. In June, it opened its first P.S. from Aeropostale children's brand store taking aim at abercrombie and fitch children's clothing.
In contrast, abercrombie and fitch high prices have produced 30% sales declines at stores open at least a year in each of the first two quarters.
High prices and a reputation for scantily clad models for years generated some of the best profits in the teen business. But that is no longer the case, said Richard Jaffe, a managing director at brokers Stifel Nicolaus & Co.
From 2002 to 2007, Abercrombie's operating margins hovered slightly below 20%. But last year, Abercrombie's operating margin fell to 13.3% and should fall to just 3.9% this year, said Mr. Jaffe.
Abercrombie Chief Executive Mike Jeffries declined to comment ahead of quarterly earnings. abercrombie and fitch has been reluctant to alter its pricing strategy in part because it believes it is the key to international growth, embodied by its large store in London. The strategy overseas is to sell its clothing as a luxury American brand.
To preserve that air of exclusivity, the London outpost, a tourist magnet, doesn't offer discounts or promotions of any kind. A men's polo shirt that retails for $60 in New York sells for ￡60 ($99) in the London store, which continues to post year-over-year increases in monthly sales. The company plans to open a large store in Milan in October and in Tokyo in December.
Even so, it has several times embarked on price cuts to move unsold inventories. Abercrombie has insisted the markdowns are highly selective. They are noted subtly by small signs on tables, not the large red signage in store windows deployed by competitors. Even on sale, a typical Abercrombie item often remains pricier than offerings from its peers.
But there are signs it is edging toward deep price cuts. At a San Francisco store in late July, more than 25% of its clothing was on promotion, compared with just 10% a year earlier, according to Ann Poole, an analyst at investment bankers Stephens Inc. Earlier this year, bowing to pressure from Wall Street, the company said it would lower ticketed prices at its Hollister and abercrombie children's brand for spring 2010.
"They don't want to destroy the brand positioning that they have, which is the cool shop in the mall," says Marie Driscoll, a retail analyst at Standard & Poor's Equity Research. "But cool is changing. And part of cool now is value."
The company, which earlier this decade settled suits alleging discrimination against Asian, African-American and female employees, was fined about ￡9,000 ($14,800) by a British court Thursday for unlawfully dismissing a London store employee with a prosthetic arm. The company called the dispute a "misunderstanding" and "based on the events of a single day."
Wall Street is pushing Abercrombie to abandon its high prices, which can be double what its competitors charge for similar clothing.
Analysts say the luxury image is failing to resonate with consumers amid the recession.
Some analysts said Abercrombie's luxury-priced strategy delivers stronger cash than its rivals -- despite the sales decline. While cash flow from operations fell 40% last year, to $490.8 million, it far outstripped the $202.1 million generated by Aeropostale. The company ended its fiscal year in January with $522.1 in cash and just $100 million in debt.
But a year of sharp sales declines could put the company in a precarious position, Stifel Nicolaus's Mr. Jaffe said. He believes the company is trying to ride out the recession, relying on its cash to support the stance.
"The feeling is: We've got the cash, we've got the brand -- the worst thing we could do is act like there's a fire sale," Mr. Jaffe says. "It's not a question of survivability at this point. It's a question of returning to historical levels of viabilit
The New Albany, Ohio, company, which is expected Friday to report a quarterly loss of seven cents a share excluding charges, has refused to offer deep discounts, allowing lower-priced rivals such as Aeropostale Inc. and American Eagle Outfitters Inc. to build sales and finance attacks on abercrombie and fitch children's and young adults' sales.
Aeropostale has posted increases in sales at stores open at least a year of 11% and 12% for the first and second quarters of this year. In June, it opened its first P.S. from Aeropostale children's brand store taking aim at abercrombie and fitch children's clothing.
In contrast, abercrombie and fitch high prices have produced 30% sales declines at stores open at least a year in each of the first two quarters.
High prices and a reputation for scantily clad models for years generated some of the best profits in the teen business. But that is no longer the case, said Richard Jaffe, a managing director at brokers Stifel Nicolaus & Co.
From 2002 to 2007, Abercrombie's operating margins hovered slightly below 20%. But last year, Abercrombie's operating margin fell to 13.3% and should fall to just 3.9% this year, said Mr. Jaffe.
Abercrombie Chief Executive Mike Jeffries declined to comment ahead of quarterly earnings. abercrombie and fitch has been reluctant to alter its pricing strategy in part because it believes it is the key to international growth, embodied by its large store in London. The strategy overseas is to sell its clothing as a luxury American brand.
To preserve that air of exclusivity, the London outpost, a tourist magnet, doesn't offer discounts or promotions of any kind. A men's polo shirt that retails for $60 in New York sells for ￡60 ($99) in the London store, which continues to post year-over-year increases in monthly sales. The company plans to open a large store in Milan in October and in Tokyo in December.
Even so, it has several times embarked on price cuts to move unsold inventories. Abercrombie has insisted the markdowns are highly selective. They are noted subtly by small signs on tables, not the large red signage in store windows deployed by competitors. Even on sale, a typical Abercrombie item often remains pricier than offerings from its peers.
But there are signs it is edging toward deep price cuts. At a San Francisco store in late July, more than 25% of its clothing was on promotion, compared with just 10% a year earlier, according to Ann Poole, an analyst at investment bankers Stephens Inc. Earlier this year, bowing to pressure from Wall Street, the company said it would lower ticketed prices at its Hollister and abercrombie children's brand for spring 2010.
"They don't want to destroy the brand positioning that they have, which is the cool shop in the mall," says Marie Driscoll, a retail analyst at Standard & Poor's Equity Research. "But cool is changing. And part of cool now is value."
The company, which earlier this decade settled suits alleging discrimination against Asian, African-American and female employees, was fined about ￡9,000 ($14,800) by a British court Thursday for unlawfully dismissing a London store employee with a prosthetic arm. The company called the dispute a "misunderstanding" and "based on the events of a single day."
Wall Street is pushing Abercrombie to abandon its high prices, which can be double what its competitors charge for similar clothing.
Analysts say the luxury image is failing to resonate with consumers amid the recession.
Some analysts said Abercrombie's luxury-priced strategy delivers stronger cash than its rivals -- despite the sales decline. While cash flow from operations fell 40% last year, to $490.8 million, it far outstripped the $202.1 million generated by Aeropostale. The company ended its fiscal year in January with $522.1 in cash and just $100 million in debt.
But a year of sharp sales declines could put the company in a precarious position, Stifel Nicolaus's Mr. Jaffe said. He believes the company is trying to ride out the recession, relying on its cash to support the stance.
"The feeling is: We've got the cash, we've got the brand -- the worst thing we could do is act like there's a fire sale," Mr. Jaffe says. "It's not a question of survivability at this point. It's a question of returning to historical levels of viabilit
2009年9月22日星期二
Abercrombie and Fitch
Yet another American company that sells clothes abercrombie and fitch that were made in a sweatshop overseas
then turns around and sells the items for ridiculous amounts of money. Now, don't get me wrong. I know there
are much more expensive stores out there and that they probably have sweatshops as well. However, abercrombie and fitch were sued in the 1990's for unsatisfactory working conditions in their sweatshops in Saipan, a US
territory. These violations included rat infested barracks (the places where the workers slept), locked fire
exits (so that in case of a fire, the workers were trapped) and over 100 other health violations. Personally,
i think that abercrombie and fitch is a stupid store, and it's not because i can't afford it, or am ugly, or
whatever everyone who absolutely loves the store thinks. It's because of the products they sell (sexually
oriented clothing, even for children) and the way they sell it (half naked models who are unhealthily thin).
Plus, my sister and i both agree on this point, the stores I've always been in stink to high heaven.
oh, and for all of you abercrombie and fitch lovers out there who claim that everyone who hates it is ugly,
please go listen to yourself and decide if you actually sound like someone who others would care to listen
to.
Next time you put on that nice little minimum-material-required t-shirt from abercrombie and fitch, think
about the kids that made that shirt making less than $1 dollar/hour. Yeah. have fun with that.
then turns around and sells the items for ridiculous amounts of money. Now, don't get me wrong. I know there
are much more expensive stores out there and that they probably have sweatshops as well. However, abercrombie and fitch were sued in the 1990's for unsatisfactory working conditions in their sweatshops in Saipan, a US
territory. These violations included rat infested barracks (the places where the workers slept), locked fire
exits (so that in case of a fire, the workers were trapped) and over 100 other health violations. Personally,
i think that abercrombie and fitch is a stupid store, and it's not because i can't afford it, or am ugly, or
whatever everyone who absolutely loves the store thinks. It's because of the products they sell (sexually
oriented clothing, even for children) and the way they sell it (half naked models who are unhealthily thin).
Plus, my sister and i both agree on this point, the stores I've always been in stink to high heaven.
oh, and for all of you abercrombie and fitch lovers out there who claim that everyone who hates it is ugly,
please go listen to yourself and decide if you actually sound like someone who others would care to listen
to.
Next time you put on that nice little minimum-material-required t-shirt from abercrombie and fitch, think
about the kids that made that shirt making less than $1 dollar/hour. Yeah. have fun with that.
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