Clothing
retailers are not typically included in lists of cyclical
industries, but I would challenge investors to look at the
long-term performance of companies like American
Eagle
(NYSE:AEO),
Buckle
(NYSE:BKE)
or Aeropostale
(NYSE:ARO)
and not conclude that sizable up-and-down swings are just part of the
fabric of this business.
With that in mind, it was tempting to argue during Abercrombie & Fitch's (NYSE:ANF) recent struggles that "this too shall pass," and that the company will eventually turn around its operating performance. While Abercrombie's third quarter performance was certainly surprising, and stimulated a major move in the stock, investors may want to be cautious in assuming that the worst is now past.
With that in mind, it was tempting to argue during Abercrombie & Fitch's (NYSE:ANF) recent struggles that "this too shall pass," and that the company will eventually turn around its operating performance. While Abercrombie's third quarter performance was certainly surprising, and stimulated a major move in the stock, investors may want to be cautious in assuming that the worst is now past.
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