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Mizuho Securities Analyst On Abercrombie & Fitch CEO Retirement: 'Retailers Are Good Candidates For Private Equity Firms'


When asked whether Abercrombie & Fitch Co. (NYSE: ANF) needs the work of an activist investor, Mizuho Securities USA Analyst Betty Chen told Benzinga that after the retirement of the company’s CEO, it’s possible the company is open to all kinds of options.

She explained that in general, retailers are good candidates for private equity firms because they’re usually strong brand equity, and they have a lot of cash flow.

“Private equity firms can come in and maybe change the executive team, pull back store roll-outs, ring in expenses and think about growth in new areas,” she said.

Since Abercrombie still has strong brand equity internationally and continues to generate cash flow, Chan said she wouldn’t be surprised if it piques the interest of some firms in private equity.


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