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Berkshire Hathaway Inc. Message Board

  • bobo21029 bobo21029 May 5, 2000 5:13 PM Flag

    On the matter of ANC..........

    ...........I wouldn't care if they're GIVING it
    away, I wouldn't have stock in ANF...........their
    target market is the 18 to 22 year old clothes horse and
    if there's a more fickle consumer out there I'd like
    to know what it is......styles and trends with those
    kids can change overnight.......I had Merry Go
    Round/Chess King once.......remember them?......they were in
    all the malls too.......sales started declining, so
    they bet on Grundge to save flopped so
    they doubled down on Hip went south and
    next thing you know it's aces and eights for the
    company.........happened quick too.........the beat goes on......Bobo

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    • I agree with you that teenagers are a fickle
      group, and that you need to keep a close eye on the
      apparel biz. But there are apparel retailers like Gap
      that have been very successful over the years catering
      to that market.

      There is a big difference
      between ANF and Merry Go Round. After Merry Go Round took
      on Chess King, they loaded up the balance sheet with
      debt. Then when fashion trends turned against them,
      they had no financial flexibility. ANF's debt-free
      balance sheet, strong cash flow, higher profitability and
      much smaller store in stark contrast to the
      troubled Merry Go Round/Chess King deal. Checkmate! ;-)

      • 2 Replies to iluvbabyb
      • AEOS is much like ANF. No debt, fast growth, beaten up stock.

      • ......I can't argue with you from a balance sheet distrust of ANF is strictly emotional.......that
        sector of marketing to younger consumers scares the
        bejesus out of me...........I would say that overall Gap
        has done the best job over the last 20 years or
        so.......but look what happened to them with the "Everybody
        Into Leather" campaign last fall...........they
        couldn't fire their ad agency fast enough after that stink
        bomb.......I don't have the guts to play the specialty
        retailers, but I wish you both well should you go with thing that has startled me over the last 25 years
        though is how much spending power the kids have
        today.........lots more dough than we ever had.......they're fat
        little targets of opportunity to a skillful
        marketeer..........the folks that know how to separate them from their
        moolah get rich fast........the beat goes on....Bobo

    • Any purchare of Merry-Go-Round on its ride to
      zero was the wrong one.

      Still, ANF's margins
      aren't imaginary, same store sales are still increasing.
      It is certainly not an enduring value. Will it
      bounce back? Or will it go the way of so many trendy
      clothes retailers. That is the 64 dollar question. But we
      have seen a decline from 50 to 10 without even a
      decline in earnings! Of course, the same comments were
      made at 30,20, and 15.

      • 1 Reply to Charlestonmystery
      • People say ANF is for kids. Well I am a 47 year
        old who wears their clothes and I think many of their
        offerings are rather conservative (which is why I like
        them). And very well made. I am outdoors a lot doing
        things that tear up clothing and I am very impressed
        with how well stitched and durable their clothes are.
        Generously cut. Great for world travelling. I especially
        like the flannel shirts and their hard wearing cotton
        shirts. But I don't know if I would buy ANF. Some stocks
        have a low p/e for a reason. Check out TALK

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