Abercrombie & Fitch Co. (ANF): So Not Cool

Urban Outfitters has a founder/CEO in Richard Hayne and he made the list of most valuable CEOs, at number 3, just behind Warren Buffett at number 1. Urban Outfitters was also included on Jim Cramer’s index of “cool” stocks. It has a forward P/E of 19.37 and analysts expect 15.38% five-year growth yoy. However, Urban Outfitters has had some recent PR stumbles of its own like Hayne characterizing its typical customer as angst ridden and homeless, as detailed by fellow Fool Caroline Bennett.

Specialty retailer Buckle may be an even better buy than Urban Outfitters, Inc. (NASDAQ:URBN) with surprise special dividends that have yielded up to 10%, as well as superior customer service, in-house alterations and fitting service, and a long-time management team with CEO Dennis Nelson joining the company in 1970 and Chairman Daniel Hirschfeld, son of founder David Hirschfeld, since 1965.

It also has strong insider ownership with Hirschfeld holding 36% and Nelson holding 4% of shares. With no long-term debt, a forward P/E of 14.96, and a regular yield of 1.60%, you’d be crazy not to prefer The Buckle, Inc. (NYSE:BKE). It also sells several hundred “cool” brands like Fossil, Ed Hardy, and Billabong.

As for Limited Brands, Inc. (NYSE:LTD), its most well known brand is Victoria’s Secret, whose very popular Pink line brings in college age women and younger. It  has a forward P/E of 14.80 and the highest yield of 2.30%. It also has a beta of exactly 1.

Trying too hard is uncool

Trying too hard and being mean in a quest for the acceptance of “cool kids” never works, or didn’t your momma teach you that, Mr. Jeffries? Abercrombie & Fitch Co. (NYSE:ANF) is not in a good place and neither should investors be. Shop at The Buckle or L Brands instead. Enjoy a cup of yield with a clear conscience instead of Jeffries’ Cool-Aid.

The article Has Abercrombie Finally Lost its Cool? originally appeared on Fool.com and is written by AnnaLisa Kraft.

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