I had blogged a few days back on whether Abercrombie should discount its apparel (Read here). In my opinion they should consider selective discounts on slow-moving seasonal inventory so that they don't have to conduct a fire sale at the end of the season.
Looks like the Abercrombie pricing issue is attracting more attention (click here).
Abercrombie warned on Jan 8 that fourth-quarter profit would fall significantly short of forecasts after reporting December same-store sales fell 24 percent. Abercrombie is " worst sales performer in December out of 35 companies whose results are tracked by Thomson Reuters."
Morningstar analyst Brady Lemos suggested that Abercrombie should consider more promotions at its surf-inspired Hollister stores, which has more stores than the main Abercrombie & Fitch chain and caters to a younger crowd. I like the idea.
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