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.
