Analyst: Abercrombie a winner on Black Friday
Abercrombie & Fitch seen as retail winner on Black Friday; shoppers flock to 50-pct-off sale
NEW YORK (AP) -- Shares of Abercrombie & Fitch gained in Monday trading after an analyst declared that the retailer was one of the winners on Black Friday.
THE SPARK: Adrienne Tennant of Janney Capital Markets said in a note to clients that Abercrombie & Fitch was among the shops experiencing lines of customers on the day after Thanksgiving, even though it offered slightly fewer promotions than last year.
The holiday shopping season of November and December is critical for retailers, as it can make up to 40 percent of stores' annual revenue.
THE ANALYSIS: Tennant said that Abercrombie & Fitch had discounts on certain merchandise in the days leading up to Black Friday. The retailer opened some of its stores at midnight on Black Friday and ran promotions online on Thanksgiving.
The analyst said that in looking at some Abercrombie & Fitch stores open on Black Friday, they appeared to be busiest between midnight and 2 a.m. By 8 a.m. store merchandise was messy and picked over, which Tennant viewed as a sign that its midnight to 6 a.m. 50-percent-off-entire-store promotion was very successful.
SHARE ACTION: Abercrombie & Fitch Co.'s stock rose 81 cents, just under 2 percent, to $45.21 in morning trading, after earlier topping out at $46.15. Over the 52 weeks, the shares have traded between $28.64 and $54.10. The stock is down 10 percent for the year to date.
