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Last year was undoubtedly an exceptionally tough one for retailers and especially those in the US. This was certainly the case for iconic retailer Abercrombie & Fitch. Nevertheless, tough times create opportunities. In this regard, we based our initial Abercrombie buy recommendation on our view that not only would the company come out the other side, it would be a fitter, leaner business to boot. ugg bootsWhile the company’s latest result highlighted the continued weakness in the US market, it also underlined Abercrombie’s attractive offshore growth potential. This is a key element of the business that we believe has the potential to deliver considerable shareholder value through the years ahead. Lace Wigs In terms of the result, Abercrombie’s fourth quarter sales fell 5% to $936 million, while same store sales decreased by 13%. Within the quarter, November and December were weaker, with January being stronger. This was partly due to Abercrombie’s winter sale, which occurred during January. Discounting has not been a feature of Abercrombie’s business model until recently. Wedding Dresses“Management thankfully completed the closure of the ill-fated Ruehl stores during the quarter.”
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