Lifestyle Brand Of Abercrombie & Fitch Co.

Down! Down! Down! Abercrombie and Fitch's Stock

alivenk | 17 July, 2009 11:51

Trendy retailer Abercrombie and Fitch Co. (ANF: View sentiment for 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.

 DAILY CHART OF ANF SINCE JUNE 2009 WITH 10-DAY MOVING AVERAGE Abercrombie and Fitch

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.

 MONTHLY CHART OF ANF SINCE MAY 2007 WITH 10-MONTH MOVING AVERAGE Abercrombie and Fitch

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).

  • 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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alivenk | 26 June, 2009 06:32

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