Oppenheimer Comments On Abercrombie & Fitch Analyst Day

According to Oppenheimer, Abercrombie & Fitch

price target is raised. Oppenheimer reported that yesterday, it attended the ANF analyst day. “The presentation was strong with management introducing above-consensus FY12 EPS guidance of $4.75 (but stepping away from previous 15% operating margin goal). Additionally, it gave international granularity for Abercrombie (~20 stores by FYE12, $1.25B annualized revenue opportunity) and Hollister (~120 stores by FYE12, 185 potential, $1.5B annualized revenue opportunity), and updated US store productivity objective to 90% of FY07 (or $467 sales/sf) by FY12 vs. previous 85%. Reiterate Outperform rating; Raising 12-18 month price target to $74 from $60. We expect international momentum to continue to accelerate but caution domestic could prove challenging near term given escalating input costs and the competitive promotional landscape.” Abercrombie & Fitch closed yesterday at $65.57.