I've been to "dead" ie near vacant malls in the US and get this phenomena. It seems America-specific. In Toronto, more people are moving to the city than the suburbs, but suburban malls are still packed. Perhaps due to better management as many are owned by the teacher's pension plan. They are actually *paying* Sears millions to end their leases early and tear down the Sears stores to add better tenants. The malls keep attracting young customers with stadium seating movie theaters and upgraded food courts. It seems the smart malls are ahead of the game.
Probably true, but about half of Americans still own stock directly or indirectly. Source: Christian Science Monitor May 2013
ANF also has more higher margin stores outside America now than it did in 2009.
The company has made money every year during the worst of the great recession/recovery, and the 2001 recession, including charges. I wouldn't be surprised if the charges they take this fiscal year allow that trend to continue. As for the horrific economy, there are presumably a lot of parents making good money on the stock market this year - certainly better than 2009, when ANF wrote off Ruehl (similar in store count to Gilly Hicks) and refused to discount for a prolonged period while the competition was discounting.
Should have said it appears that the "$88 million obstacle was reduced to $6 million" if I am understanding this correctly. But if anyone else has any counter interpretations or other things to consider from the filings, feel free to post.
This is what I see as important from the 8-K:
"There is no retention or sign-on grant, and the formula for semi-annual equity grants contained in the 2008 Agreement has been eliminated. Instead, the 2013 Agreement provides that Mr. Jeffries is eligible to receive long-term incentive awards each year with a target value of $6,000,000, as measured for accounting purposes."
Compare this to the proxy in May 16, 2013:
"For termination with “Good Reason” or “Not for Cause” subject to a change of control, the $88,024,081 includes the value of any outstanding Semi-Annual Grants ($7,151,381), plus the full value of the Retention
Grant from the effective date of the Jeffries Agreement through the end date of the Jeffries Agreement ($80,872,700)."
If I'm understanding this correctly, and I just quickly glanced through it, it seems that an $88 million obstacle to any future takeover has been eliminated, but of course do your own due diligence. While I think this company could have succeeded without Jeffries, if his employment being an obstacle to any potential takeover is reduced, then I am glad to see that.
"Why close unprofitable stores? Your name is earnings reporter? hahaha"
That was pretty funny.
"If you wish to refute anything I say, please do it..."
I think you're already doing a pretty good job refuting what you have to say. Like changing your argument to say comparisons of Black Friday sales to an entire quarter are faulty, after making your argument how a Black Friday sale negatively effects the current and next quarter. Which if you add both quarters last year, were collectively profitable.
"But, while my agreement soothes your emotional need for your stock to succeed, I will continue to short it and make money on the downside until I see reason not to."
You are free to do that. Although it is always funny when shorts start posting stuff like you just did when the stock is up since you started posting.
Your attempts to create confusion are predictable given your short position, but the company was profitable before charges related to writing off an underwear chain, which I have said all along.
"The scary thing about this list, other than it is just a collection of varied web searches that has no bearing on the market, is that when Abercrombie was in the top 10, it fell 50%. What will happen now that it is at 11?"
You are confusing lists. It is ranked #6 on the *fashion chart* in the US as of the most recent month available, October. That was a move up from the previous month. In the most recent quarter online sales went up, which makes all of that unsurprising.
The rank of 11 is among terms searched in *various categories* in the US on Black Friday. You can speculate that has no bearing on the market, and I will speculate that people searching for Abercrombie on Black Friday were looking to buy stuff online on that date or find out what deals were in stores that date. And the market can speculate which theory seems more logical.
I think the dilution has been priced in since the deal was announced years ago. They could exercise the rights right now, and perhaps make a profit by dumping the shares, since it's trading over $1.75. Or they could pay nothing and hold on to the rights and see how it plays out. Since the company is not forecasting being in need of cash, they appear to be showing confidence by not trying to cash out, but that is just my humble opinion.
We've seen a new poster here repeatedly post mathematical calculations that because ANF marked things down 50% on Black Friday this year that they will lose money. I had responded that this is not the first year they've had big discounts on Black Friday, but if you want to see for yourselves, the Huffington Post has the answer in a slideshow. They did discount 50% last year during certain hours of Black Friday 2012. And they were profitable that quarter. I'll try to post the link below, but in case yahoo doesn't allow me, it is in a HuffPo slideshow called "Black Friday Shopping Guide For Teens: 10 Stores Offering Major Discounts (LOOK)" originally posted on November 21, 2012.
Here's the list, since one poster seems to want to keep saying I was posting information about Black Friday 2012 making it sound like Black Friday 2013. IMHO, the only thing this indicates is that the company may be more popular online than some on this board are trying to make it sound. I'll try to add a link but doubt yahoo will allow a google link:
Friday, November 29, 2013
1 Apple Store
2 Toys R Us
3 Victoria Secret
6. Garth Brooks
7 Target Black Friday
8 Evelyn Lozada
Typing that I referenced 2012 Black Friday sales a million times will not make it true. You must really want me to keep correcting you and pointing out to the limited number of people reading this board that they can look at Google Trends, all topics, on Black Friday 2013, and see that "Abercrombie" was number 11 in America. The only other reference to Black Friday was a Wall Street Journal article "The Dirty Secrets of Discounts" which wrote about what stores "will be doing" on Black Friday 2013.
"Nothing you have posted has pointed to an uptick in the stock, and that is what I am looking for: a reason to get out of shorting ANF."
I've already said I couldn't care less if you stay short, and the stock has gone up since you started posting here.
"And why is my Yahoo Id new? I've had the same one for over 15 years."
Anyone can click on your user name and see you created the account on October 30, 2013. I'll help you out, here's what it says:
65 posts | Last Activity: 26 minutes ago
Member since: Oct 30, 2013
Perhaps you were confusing it with another ID you're using on this board to agree with yourself? I couldn't care less if you're short, but when you post that I said things on a board that I never said, as you have in other posts, I am going to comment if I have time.
What you just said has no impact on the company's cash flow, which is why analysts look at the adjusted numbers. So that amount you quoted does not have to be set aside. Do your own due diligence, everyone!
"If that does not scare you into better investing, then I don't think anything will."
You have no clue what my investing record is, which makes your quote kind of silly. You could go and look at my message board posts though, and see that I was debating shorts like you in 2009 when this was in the teens, and debating people who thought Apple was a good short under 100, and people who thought Yahoo was a good short in the teens. And I can look at your newly created Yahoo ID and see that this stock actually has gone up a bit since you started posting here.
"Why are you commenting on a 2-week-old thread?"
Because you claim to be a teacher but can't spell at any grade level that ANF targets, like "losing."
"I guess if you were right, and I was loosing money by shorting...BTW, what spelling mistakes did I make? An F is kind of harsh..."
I love it when shorts unintentionally provide comedic gold on this message board.
"Remember when you posted the link to the news story from 2012 like it was this year's Black Friday?"
Since that never happened, teach, you get an "F" for reading comprehension, too. I did mention that anyone can go to Google Trends for Black Friday 2013 and see Abercrombie was the eleventh most searched term in America.
I'm going to give you an "A" for effort for posting the same stuff again and again and an "F" for debating skills and spelling. Enjoy your A&F!