Don't think Ruehl's cash burn is as big a problem with only about 30 stores out of over 1,100. I'd guess the biggest cash burn was the capital improvements to the stores. Even if sales at Ruehl were zero, I'd guess the current international stores would balance things out. Of course, I'm just guessing all of this!
They are re-evaluating Ruehl. It's an important demographic for them to get (people out of university with real salaries for the first time in their lives and no mortgages). Even if they shut Ruehl down, at some point they might want to go after this demographic again, so its in their interests to figure out how to get it right now.
Excellent point on reaching this demographic! These are the kids that grew up with Abercrombie and now want to move on.... Only point I disagree with is.....this is a big cash burn. 30 stores is a heck of a lot more than 1 or 2 underperforming stores.