For Abercrombie to buy their own shares in this market, in this economy would be malfeasance bordering on the criminal. The company simply has no interest in supporting the stock in this market.
You might have something there. According to their las balance sheet ANF had about $20 per share. They could be buying up their own shares to prop the price up in hopes it will recover and they can recoup all their money back. This must be why the lagging PE is 165 and the forward PE is 21. I just dodn't see it happening. They probably told GS that they would keep buying their stock so GS gave them a Strong Buy to help them out. What a wicked web of BS.
I don't think so for two reasons. First, cash looks good because they have low inventory. Payables are higher than inventory.
ANF will probably "earn" about 40mm this quarter. This means they end the year losing about 50 cents a share.
Next year, they'll have to close stores. Problem is, closing 100 stores will wipe them out. ANF can't afford to stay open and can't afford to close. This is usually how retailers fail.
If you look at their SEC data, they already have pretty heavy restrictions in their loan covenants.
as the trend continues they will start eating away at the cash on their balance sheet...... can;t continue to keep having negative comps without impact...
look at PSUN, WTSLA, HOTT, GADZ(they are gone)