Abercrombie & Fitch sees Q1 'slight EPS loss', consensus 16c The company sees a "slight EPS loss" in Q1, compared to a restated loss of (25c) under the cost method in the prior year quarter. Abercrombie sees a high single digit decrease in Q1 comparable sales. Sees strong gross margin rate improvement in Q1, largely offset by expense deleveraging on negative comp. store sales. Comments from slides for Q4 earnings conference call.
American Eagle downgraded to Sell from Neutral at Goldman Goldman Sachs downgraded American Eagle (AEO) to Sell saying it sees 29% downside risk over the next six months. Goldman believes declining mall traffic and "aggressive competition" from low cost stores puts the retailer in a multi-year period of diminishing productivity, margins, and returns. Its six-month price target for American Eagle is $12. Shares of the retailer closed yesterday up 17c to $16.92. Goldman lists Ann Inc. (ANN), Abercrombie & Fitch (ANF) and American Eagle as its top sell ideas in the Specialty Apparel space. Its lone Buy rated name in the group is Urban Outfitters (URBN).