Abercrombie relies on huge markups to survive. Their store costs are enormous and their rents are enormous. Also, they don't even make an attempt to stop pilferage.
Over the last 4 years, they're opened too many stores, relying on accounting gimmicks to make them look more profitable than they are.
Now they're stuck with long term leases on 1127 stores and their margins are getting plastered. They can't afford to buy inventory, can't afford to discount and have a huge amount of cash in level 3 student loans they can't sell and haven't written down.
IMO, this company has about as much chance of survival as a 103 year old chain smoker.
I envision this going the way of Crox and Krispy Kreme. I just hope I can pick the right put option strikes and dates to make huge profits. Once the snowball starts rolling down the hill it should happen fairly quickly.