American Eagle, Abercrombie: Inventory Foretells Margin Squeeze [View article]
Time will tell who has the more profitable approach. It could be that Abercrombie is targeting a more affuent consumer and prefers to maintain its image as the elite brand. This may well hurt them in the short term, but longer term it will mean higher margins.
IMO it is a mistake to value stocks based on trough earnings. They are a claim on a long stream of earnings. It is this longer term stream that Abercrombie is seeking to preserve.
American Eagle, Abercrombie: Inventory Foretells Margin Squeeze [View article]
IMO it is a mistake to value stocks based on trough earnings. They are a claim on a long stream of earnings. It is this longer term stream that Abercrombie is seeking to preserve.