The Business of Fashion
Agenda-setting intelligence, analysis and advice for the global fashion community.
Agenda-setting intelligence, analysis and advice for the global fashion community.
NEW ALBANY, United States — Abercrombie & Fitch Co. shares fell for a second straight day after the stock was downgraded by FBR & Co., blaming slow progress in the retail chain's comeback bid.
FBR analyst Susan Anderson lowered her recommendation to a neutral rating from the equivalent of a buy. The company is suffering from image problems, and margins are getting squeezed overseas, she said in a report Tuesday.
“The company’s brand image turnaround is still in progress and benefits from initiatives are still a ways out,” Anderson said.
The shares fell as much as 4.2 percent to $21.20 in New York on Tuesday, following a drop of 6.2 percent the previous day. The stock had already lost 18 percent of its value this year through the end of last week, reflecting concerns about Abercrombie’s turnaround.
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Abercrombie has been trying to make its stores and products more appealing to teens, who have turned away from the brand in favor of fast fashion and online options. The New Albany, Ohio-based company also has been without a chief executive officer since December, when longtime head Mike Jeffries stepped down. At the same time, Abercrombie faces sinking traffic in malls and a strong dollar, which reduced its international sales last quarter.
By Nick Turner; editor: John Lear.
The Japanese apparel chain will be launching its sister brand GU in the US later this year, targeting younger consumers with lower prices and a curated selection of trendy wares.
Canada, France and Ireland are among the countries working with home-grown fashion talent to create uniforms for their teams at this summer’s Olympic Games. For these small labels, it’s an unprecedented opportunity to capitalise on one of sports’ largest events.
The online fashion retailer plans to update China’s securities regulator on the change of the initial public offering venue and file with the London Stock Exchange as soon as this month, a person with knowledge of the matter said.
The company, under siege from Arkhouse Management Co. and Brigade Capital Management, doesn’t need the activists when it can be its own, writes Andrea Felsted.