this is NOT an all about RUEHL problem. To keep it real it is a Abercrombie problem. Nobody seems to want to believe it but it is true. Management really screwed up with its maintaining pricing strategy. Now that it is going to lower prices....magic will not happen! Just because ANF was a heartthrob before does not mean it will be once again! time will tel but Time has also been telling!
What happened to your earlier acknowledgment that this is an international story? I was in three of their stores in Toronto this afternoon (Sherway Gardens: ANF, Hollister, and kids). There were "clearance" signs at the front of each store. Scattered throughout the stores were some clearance tables, and most of these tables were empty or close to sold out. The markdown at Hollister was maybe $5 Cdn per tee from $25. There was not much available at sale prices at ANF. All of the stores had line-ups, with about 15 people at the Kids vs. 20+ people in the ANF and Hollister stores. This compared to line-ups of about 5 people at American Eagle and American Apparel, and nobody at the check-out counter at Guess.
The line ups in Canada are consistent with Jeffries' comment in the conference call that a store that just opened in the UK had line ups to get in and 5 times the business of an American store opening.
Well I guess then they should close all the U.S. stores and go North of the border, EH? Seriouslythough, I know you are a fan of ANF and you know I am a sceptic of ANF. I would be a long term buyer of this stock in the mid teens but at these levels NO WAY!To much risk. At this point I am just looking to be a trader because the daily moves are to good to pass up on. And yes, I do believe international expansion is a GREAT move for this company. However they have to fix there U.S. presence first.