Even as Abercrombie & Fitch was struggling to bring American customers back into it stores, there was always one group the retailer good count on: European tourists who flock to the stores, waiting in long lines to purchase A&F-branded clothing. Abercrombie might not be able to count on that foreign bread and butter forever, however.
The euro’s value against the dollar has been dipping in recent years, which means European visitors aren’t shopping as much when they visit our shores, Eric Beder, analyst at Wunderlich Securities, wrote in a recent note to clients reported by Business Insider.
“With [foreign exchange] still a key issue, and tourist traffic remaining a negative, we continue to be cautious on ANF and believe the company still faces a number of key issues in terms of fashion outlook, productivity and an overall weak teen segment to overcome before regaining anything similar to a premium multiple,” Beder said.
Sales at A&F are slightly up recently, despite scoring the lowest marks among retailers on this year’s American Customer Satisfaction Index, but if the tourists disappear, that doesn’t bode well for the future of the company.
Abercrombie & Fitch is facing a terrifying reality about its most loyal customers [Business Insider]
by Mary Beth Quirk via Consumerist
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