ANF is up today again while the bad news gets worse......Thanks hedge funds and crooks
We continue to see ANF as a weak name right now since its last earnings report, and we believe it is a good candidate to short or sell if weakness strikes the market. In the company's last earnings report, it missed EPS expectations of -0.05 with a -0.09 report as well as a sizeable miss in revenue at $839M versus $942M expected. The company also saw a 17% decline same-store sales. Here were some comments from us about the report:
Reported EPS this quarter was -0.09, missing consensus by $0.04 and reported revenue was well below expectations. Net sales dropped by 9% to $838.8M from $921.2M last year. The decrease in net sales is a sum effect of a decrease in same-store-sales in the US of 14% and a decrease in same-store-sales in international stores of 16% to give a total decrease in same-store-sales of -12% compared to the same point last year.
Another main problem for Abercrombie & Fitch is that their decreases in revenues are occurring in all segments of the company. For example there was a decrease of $73M for Abercrombie for kids, and an even higher decrease of $421M for Hollister Co. coupled with decreases elsewhere. This doesn't bode well for the company as in the next quarter they might start seeing the effects of the comments made by the CEO.
This is entering the five weeks before they report earnings in August. This will be pumped, using stock buybacks, with all sort of #$%$ right into earnings. This is the most manipulated stock I know of.