Citi: Abercrombie & Fitch Updates Teen Pricing

In a research report published this morning by Citi, Abercrombie & Fitch ANF has seen great success through its promotions over the past few weeks. According to Citi, “Promotions tapered off for AEO and ARO and accelerated for ANF across the last two weeks of March. Yet, with a good part of the quarter behind us, ANF appears to be passing some of its input costs through, with domestic AUR up in the low single digits, by our calculations, quarter to date. As a result, we think ANF is better positioned than we had originally modeled and we're raising our estimate to $0.03 vs the $0.01 consensus. AEO and ARO each guided to equally challenging 1Q's that should reflect their AURs, which are down in the mid to high single digit range, based on our channel checks.” Citi maintains its Buy rating and $58 PT on Abercrombie & Fitch, which closed yesterday at $51.62.