Down! Down! Down! Abercrombie and Fitch's Stock
alivenk | 17 July, 2009 11:51
Trendy retailer Abercrombie and Fitch Co. (ANF:
) has been the focus of heavy put trading recently, as options players increase their pessimistic bets toward the firm.
During the past 10 trading sessions, 30,031 puts have been bought to
open, while just 2,973 calls have been bought to open on the
International Securities Exchange (ISE). In other words, 10 puts have
been purchased to open on the ISE for every one call purchased to open.
This ratio of puts to calls is higher than 97% of all those taken
during the past year, indicating that pessimism is on the rise toward
the security. In fact, the Schaeffer’s put/call open interest ratio for
ANF stands at 1.67, as put open interest easily outnumbers call open
interest among options slated to expire in less than three months. This
ratio is higher than 81% of all those taken during the past year. In
other words, short-term options speculators have been more skeptical of
the shares only 19% of the time during the past 12 months. Options
players aren’t the only ones with their doubts about the retailer.
Short sellers have flocked to this stock. More than 15 million ANF
shares have been sold short, accounting for more than 18% of the
company’s total float. What’s more, this accumulation of bearish bets
is more than four times the stock’s average daily trading volume.
Should the bears continue to add to their winning positions, the stock
could succumb to increased selling pressure. Wall Street is also giving
the security the cold shoulder.
According to Zacks, the equity has earned six “buy” ratings,
12 “holds,” and two “sell” ratings. With the stock poised to resume its
long-term downtrend, there is still ample room for additional
downgrades from this group. Furthermore, the 12-month price target for
ANF stands at $27.63, according to Thomson Reuters. This
reading implies that analysts are expecting the shares to rally more
than 15% during the next 12 months. Any price-target cuts could also
weigh on the shares. Technically speaking, the security is up only 3.7%
since the start of the year, which is slightly ahead of the broad
market S&P 500 Index’s (SPX) breakeven return. The stock has been
guided lower under its declining 10-day moving average since June 4,
when the equity gapped lower. At that time, the company reported that
May sales fell 22% to $182.1 million, while same-store sales plunged
28%. Analysts were expecting same-store sales to drop only 24.1%. On a
year-to-date basis, net sales were down 23% to $794.2 million.
From a longer-term perspective, the equity has dropped back below
resistance at its declining 10-month moving average after a brief foray
above this trendline. This moving average has guided the shares lower
since February 2008.
Looking ahead, the company is estimated to report earnings on Aug. 14, according to data from Thomson Reuters.
Analysts are expecting a loss of 3 cents per share, which is down
sharply from the company’s year-ago profit of 87 cents per share.
Overall, this growing pessimism is to be expected considering the
stock’s weakening technical backdrop. Should the bears continue to add
to their pessimistic positions, Abercrombie could be hit with additional selling pressure.
All the RUEHL stores WILL be closed By 2010
alivenk | 03 July, 2009 13:51
Ruehl No.925 (marketed as “RUEHL No.925″ ), or simply Ruehl , is an upscale American lifestyle brand from Abercrombie and Fitch
. It is inspired by the artistic and cultural heritage of New York
City’s Greenwich Village. The brand is designed for post-graduate
individuals aged 22 through 35, retaining consumer basis past
collegiate consumers for the A&F company. RUEHL retails its
apparel, leather goods, and lifestyle accessories through its stores.
On June 17, 2009, Abercrombie & Fitch announced that it would
close all 29 RUEHL locations by the end of the fiscal year (January
2010).
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Fictional background
According to Abercrombie & Fitch’s publicity material, RUEHL came to be as so:
In the 1850s, the German Ruehl family immigrated to West Village (a
division of Greenwich Village). There, they moved into 925 Greenwich
Street and opened up a leathergoods shop. Their first customer was a
little “inquisitive” bulldog who walked in with a “steadfast demeanor”
and a “confident attitude”. The shop then on became popular, providing
the Ruehls with a decent living. The Ruehl’s son later moved next door
into No.923 and took over the business. Being inspired by the fashion
of James Dean and his work, he introduced RUEHL jeans. Afterwards, the
grandson, moved into the present 925 Greenwich Street, bringing
together all the previous elements of the business with his interests
in the finer aspects of life; books, music, and art. In 2002,
Abercrombie & Fitch bought the rights to the family’s name.
The above story is intentionally fictional. The background is not
readily made available to customers, but was created to help tie in all
the elements of the RUEHL brand. There exist no building numbers past
the 800s on Greenwich Street and there are no records of an established
Ruehl family in the Village either. There is nothing very German about
the name, in the same sense that sister brand Gilly Hicks is not
Australian, although both claim to have roots to those cultures. The
store structure consists of three walkways and the logo for the brand
is the bulldog. The family’s name “Ruehl” is in fact a variation of the
German last name “Ruhl.” Furthermore, the name “RUEHL No.925″ signifies
the title of an occupied residence (by the fictitious Ruehl family).
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Launch
RUEHL No.925 finally opened on September 24, 2004 with three
locations. These were at Garden State Plaza (New Jersey), Woodfield
Mall (Illinois), and the International Plaza (Florida). Designed to
look and feel like Greenwich Village, RUEHL really presented a new,
“more sophisticated” lifestyle than other Abercrombie & Fitch
brands. The store prototype of this time was a two-floor prototype
measuring at 9,500 sq ft (880 m2). Due to its structural form and size,
locations capable of housing the prototype became hard to acquire.
Mike Jeffries did not launch an online store upon the opening of
RUEHL. He wanted to attract customers to the stores to experience the
RUEHL atmosphere. What was launched was a promotional website which
gave store listings, previewed the private online policy, and allowed
for email subscription to receive news on RUEHL.
Original prices upon opening were roughly 30% higher than at
Abercrombie & Fitch (e.g. destroyed blue jeans $148.00 USD). Many
consumers deemed this as too high for young professionals who normally
begin their careers at fair incomes.
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The logo: Trubble
The official logo for RUEHL No.925 is the French bulldog Trubble. He
is the little “inquisitive” bulldog with a “steadfast demeanor” and
“confident attitude” who walked into the Ruehl family shop in the
mid-1850s - so states the fictional background to RUEHL. He was, as the
fake literature continues, the family’s first customer (to their
surprise and delight). Subsequently, Trubble became the logo for the
brand.
His name, “Trubble”, is a play on the word “trouble.” It signifies
the trouble that Mike Jeffries and his development team underwent to
create an appealing logo for RUEHL. Before deciding on Trubble, the
company experimented with different designs on RNY polos. The logos
included: “R925″; an artistically cursive “R”; and “RUEHL / No.925″.
The bulldog from the RUEHL background was finally selected and
christened “Trubble” - a sort of counterpart to the Abercrombie moose,
the flying Hollister Co. seagull, and the Gilly Hicks Koala. Trubble is
today embroidered on Polos and silk-screened on other merchandise.
Trubble also occasionally has a series of tees dedicated to his iconic
image.
RUEHL released the marketing slogan “Get into Trubble at RUEHL” in August 2008.
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Closure of Ruehl
On June 17, 2009, Abercrombie & Fitch announced it would close all 29 RUEHL stores.
Mike Jeffries, Chief Executive Officer and Chairman of the Board of Abercrombie & Fitch Co., said:
It has been a difficult decision to close RUEHL, a brand
we continue to believe could have been successful in different
circumstances. However, given the current economic environment, we
believe it is in the best interests of the Company to focus its efforts
and resources on the growth opportunities afforded by our other brands,
particularly internationally. While I am disappointed with the ultimate
outcome, I am grateful for the effort and commitment the RUEHL team has
shown in developing and positioning that brand in the marketplace. In
particular, the recent strides made in differentiating and elevating
the RUEHL assortment make this an especially difficult decision.
However, all of our brands will benefit from our experience and lessons
learned with RUEHL.
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Abercrombie kids
alivenk | 26 June, 2009 06:38
Abercrombie Kids (marketed as "
abercrombie " or "abercrombie kids") is a American
lifestyle brand from Abercrombie & Fitch Co. This brand is the kid's version
of the popular Abercrombie & Fitch, with a "classic cool" theme targeted
towards elementary/middle school individuals aged 7 through 14. Abercrombie kids
offers apparel designed after the A&F "Casual Luxury" apparel but with
smaller sizes and cheaper prices. Goods are sold in stores and at their website
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History
Abercrombie & Fitch introduced abercrombie in 1997 with 9
stores. The purpose was to attract a younger audience to the American
Abercrombie brand. The name of the concept took the same font of its parent, but
with a navy color. The abbreviation from "Abercrombie & Fitch" to
"abercrombie" with lowercase letters was intended to provide a children's image.
The store prototype was as the A&F one, but with variations also intended to
appeal to the younger audience. Early abercrombie models include Ronnie Smith,
Cassie Ventura, Christina Akatsuka, Christian Valentin, and Lindsay Lohan.
Current operations
Stores and expansion
Abercrombie kids stores are designed to give off a
"classic cool" effect. They are designed as "canoe stores," displaying the a
similar floor layout as Abercrombie & Fitch's (the retail space is divided
into multiple rooms). However, the kids prototype does bear differences. It has
no louvers to cover the windows, has brighter lighting, is smaller in retail
space, blasts electronic dance music and pop music from young artists, and
displays marketing pictures with young models resembling those at A&F. The
signature fragrance, "Phelps", is sprayed store-wide. However, in late 2008,
most new stores have added wooden louvers.
As of 2008, abercrombie
operates a total of 209 stores in the United States. abercrombie kids opened its
first Canadian store on August 21, 2008 at Sherway Gardens in Toronto, Ontario.
Another abercrombie kids store opened at Toronto Eaton Centre in Toronto,
Ontario around the end of November.As of February 2008, there are stores in
every state except for Alaska, Delaware, Hawaii, Maine, Montana, Nebraska, New
Mexico, North Dakota, South Dakota, Vermont (Closed in 2005), West Virginia, and
Wyoming.
abercrombie kids goods
abercrombie kids' apparel is designed to mimic
Abercrombie & Fitch clothing, and the brand carries most the styles that
A&F does. Most abercrombie kids clothes that have the labeled moose on them
are to resemble their parent company "Abercrombie & Fitch" but the kids
signature moose is a smaller to symbolize that they are children. The
trademarked term, "classic cool", is used to promote the clothing on an in-store
and website level from abercrombie and it acts as the more juvenile version of
A&F's slogan "Casual Luxury". The "classic cool" trade mark was retired in
2007 along with Abercrombie and Fitch's "Casual Luxury". Jeans bear the same
back-pocket-stitching pattern as A&F as well as the same fits respective to
sex. The logo moose is prominently displayed on clothing as is the name
"abercrombie" as well as the year of establishment, "1892" (Abercrombie &
Fitch was itself established in 1892, but in reality, the children's' line
"abercrombie" was not started until 1997). Clothing is categorized within the
"guys" and "girls" divisions. Price points are on par with those at sister brand
Hollister Co.
The brand carries the following fragrance collections:
"Phelps" cologne, "Chase" cologne and "Cologne 15," as well as "Emerson,"
"Spirit" perfume, and "Perfume 15". The brand released the "abercrombie" cologne
and perfume set previous to 2006; however, it was retired Christmas 2007. Chase
and Spirit were released Christmas 2006 and were followed by Cologne 15 and
Perfume 15 being released Christmas 2007. Chase is set to retire from stores
after the Back to School 2009 season is over, however will be available on the
abercrombie website until 2010. New fragrance Phelps and Emerson were released
for Christmas 2008.
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Congratulations!
alivenk | 26 June, 2009 06:32
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