Abercrombie (ANF) shares are up 11% in the first hour of trading, as sales from stores open at least a year were up 5% in February from the prior year's period. The street had been expecting a decline of 7%, so this is a beat of 12%.
I wrote about ANF shares earlier this week, suggesting that Brean Murray was wrong to give the shares a SELL rating:
"In terms of a SELL rating, I think the opportunity has been missed. Shares are at less than half their five year highs, and if this management doesn't figure out how to regain some semblance of previous years' profits, they will be kicked out and someone else will do it. I certainly buy the bear arguments against Abercrombie, but I think a SELL rating at these levels has less chance of being right than a BUY rating."
That analyst must be having a rough morning, as ANF is up 11% since that SELL call...absolutely maddening for clients who listened and sold shares short.
The huge SSS beat leaves us all with a critical question --- at what PRICE were those sales, Abercrombie? Big sales at big markdowns = not good, but for now the street loves the results, which indicate sales will come in way ahead of expectations this quarter.
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