Shares of Abercrombie & Fitch Co. sank 4.5% in midday trading Tuesday, but CFRA analyst Camilla Yanushevsky reiterated her buy rating, saying investors are missing bullish points, although she cut her price target to $22 from $35. The stock had plunged 50% since closing at a 3-year high of $30.48 on May 3, 2019 to a 1 1/2-year low of $15.23 on June 12, highlighted by the 27% tumble on May 29 after fiscal first-quarter results, in which same-store sales missed expectations. “Initiatives CEO Fran Horowitz [have] taken to integrate inclusivity in brand since her appointment are paying off,” Yanushevsky wrote in a note to clients. “In our view, retailers that align mission and product to convince consumer that they’re ‘inclusive’ will flourish, even in the face of secular mall traffic declines.” Yanushevsky pointed out that A&F has posted 7-straight quarters of same-store sales growth. That followed six-straight quarters of declines, and 22 quarters of declines over the past 23 quarters. The stock has lost 23% year to date, while the SPDR S&P Retail ETF has gained 1.2% and the S&P 500 has advanced 17%.
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