Zacks Investment Research downgraded shares of Abercrombie & Fitch Co. (ANF) from NEUTRAL to UNDERPERFORM on August 28, 2013, with a target price of $32.00.
We have downgraded our recommendation on Abercrombie to Underperform as its dismal performance continued into fiscal second-quarter 2013, as well. The company reported lower-than-expected bottom-line results for the quarter, driven by poor performance of the business catering to women's fashion needs and lower traffic. Further, the company's negative comps are playing spoil sport. Consequently, the Zacks Consensus Estimates have been witnessing a downtrend. In addition, we believe that the company's over-dependence on outside suppliers, intense competition from discount retailers as well as the seasonality of its business may undermine growth prospects.
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