Abercrombie & Fitch Co. (ANF): This Retailer’s Earnings Are Slim, But Not Cool At All

Steer Clear

Jeffries mouthing off earlier this month about cool kids and clothes sizes was nothing new. However, what is new is the public’s growing intolerance and politically correct attitudes toward anything that can hurt someone’s feelings. For Abercrombie & Fitch, the dismal earnings reported for the first quarter coupled with the offensive remarks have set the stage for continued bad financial news for the company.

For all the factors I’ve pointed out, I would steer clear of both Abercrombie & Fitch and Aeropostale. I would sell them, and definitely not buy them. I see their share prices declining further due to them likely to continue to experience weak earnings. Gap is showing it is improving its finances, which make it a better buy.

The article This Retailer’s Earnings Are Slim, But Not Cool At All originally appeared on Fool.com and is written by Tedra DeSue.

Tedra is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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