Abercrombie Is Threadbare
A few years ago, teen retailers could do no wrong. The group was a nonstop rocket ship powered by trendy teenagers spending their parents' guilt money. But, once the recession hit, teens un-friended the whole group, fleeing the flashy mall stores as they were forced to face the indignity of wearing clothes they already owned. Abercrombie & Fitch (ANF), for its part, retrenched. Can the company right the ship or is all hope lost?
The golden age of teen retail was in 2007. Abercrombie posted a legendary 26% same-store sales comparison, a number that forever will stand in the Retail Hall of Fame. Driven by insane same-store sales, the stock soared to an all-time high of $82. But, by 2008, when Mom and Dad could no longer use their home as an ATM, same-store sales collapsed. It got so bad that, by 2010, Abercrombie was posting a negative 23% comp -- another Hall of Fame number. Sales per square foot went from a peak of $500 in 2008 to an ugly $339....204 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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