namesake stores as well as abercrombie

Consumers are cutting back on spending amid the recession, and focusing on finding bargains. The company, which operates of namesake stores as well as abercrombie, its children's apparel brand; surf-themed Hollister; and intimate apparel store Gilly Hicks, said Friday it is lowering prices and trying to catch up with fashion trends. It reported a fiscal second-quarter loss for the period ending Aug. 1 and its third-straight quarter of double-digit sales declines.

Lakner said the company has its work cut out domestically, since it must close underperforming stores and improve productivity in ones that stay hollister clothing open. She said it must do this while it expands overseas. The company is closing the Ruehl line, its store focused on handbags and other accessories, and cutting jobs.

UBS analyst Roxanne Meyer said the U.S. store base is "mature" and likely to see "meaningful" store closures/reloations. The Ruehl No.925 and its children's' apparel brand are likely to see store closings, she wrote, which "could help make the brands feel less mass/more unique."

She told clients in a note Monday the key driver is to have better sales at full price, but that is not yet being seen in the sales.

Meyer cut her fiscal 2009 earnings per share estimate to 74 cents from 85 cents, while Lakner cut hers from 79 cents to 73 cents. Meyer maintained her fiscal 2010 earnings per share estimate at $1.51, while Lakner cut hers by 2 cents to $1.40.

Analysts predict the company will earn 84 cents per share in fiscal 2009 and $1.51 in fiscal 2010.

In midday trading, the Dow fell 159.46, or 1.7 percent, to 9,160.88. Meanwhile, the Standard & Poor's 500 index and the Nasdaq composite index each dropped more than 2 percent.


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Victory for Abercrombie & Fitch shop worker

An abercrombie shop worker with a prosthetic arm has won her case for wrongful dismissal against the retailer.


Riam Dean claimed she was taken off the shop floor of the American retailer’s London flagship store on Savile Row because she did not fit with the company’s “Look Policy”.

A central London tribunal has ruled she was wrongfully hollister clothing dismissed and unlawfully harassed, but did not uphold her claim for disability discrimination.

According to reports, the tribunal awarded Dean ￡7,800 compensation for injury to her feelings and ￡1,077.37 for loss of earnings and ￡136.75 damages for her wrongful dismissal.

Dean is believed to have befriended disabled abercrombie outlet model Sophie Morgan and the pair have launched Imperfect, a clothing range and campaign group.

Abercrombie & Fitch is an AMAZING store

Abercrombie & Fitch has reported weak same-store sales over abercrombie and fitch the past year as it has stuck to relatively high

price points amid the recession. Black said it should see its same-store sales improve, although he still

predicts a 23 percent drop, as shoppers pick up back-to-school items.

Results should be helped by improved results at the hollister chain's surf-themed Hollister offshoot, Black said.

Longer term, Black said he expects Abercrombie should begin to get more revenue from international flagship

stores beginning in the fourth quarter. Also, lower cost-of-goods in 2010 should help the company lower opening

price points, Black said. He upgraded the stock to "overweight" abercrombie outlet from "equal weight."

He also upgraded Gap to "overweight" from "equal weight," based on merchandise improvement and likely

improvement at its Old Navy stores by the December holiday season.