Ballinvarosig Investors Posted November 1, 2016 Share Posted November 1, 2016 A whole pile of companies in the apparel business are getting smashed up. Nike and Under Armor have hit 52 week lows while Abercrombie & Fitch is at an unbelievable 16 year low. The latter seems pretty unbelievable. This was the pre-eminent brand when I was at college 15 years ago, yet here it is seemingly at risk of going under. The stock price decline is all the more startling when you consider it is has gone from 92M shares outstanding to just 68M outstanding today. I would have thought this was normally a good thing, but just ask Aeropostale shareholders if they thought the same about their stock buy back binge. It doesn't seem all bad for Abercrombie though, gross margins are still relatively strong, and despite the strong dollar, growth seems to be continuing internationally (just over 1/3 of revenue), with the US stores leading the declines. Having said that, the real worry is the US store sales are the leading indicator here. With $3.5B in sales, I do have to feel that this thing is worth more than $1B current market cap to someone out there. Thoughts? Link to comment Share on other sites More sharing options...
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