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."
