Message Font: Serif | Sans-Serif
 
No. of Recommendations: 4
no position, but sorta intrigued by valuation. Fundamentals are tough. Negative SSS. Inventory is clean, which is always a good sign.

New CEO. Traditional logo wear is out of fashion, but I think the brand still carries some value. Capex is now lower than D&A, so they could generate some nice cash.

near term, they will get hit by strong $/weak euro, as Europe derives a big chunk of revenue/profit. we saw a profit warning from RL, and that is behind numerous EPS cuts/downgrades on ANF.

What's interesting to me is this company is now sub $2B mkt cap. Under 5x EV/EBITDA, and just 0.4x EV/sales, which implies the company will never earn over 5% op margin.

We know 20% op margin is a thing of past, but there is a lot of room btwn 5% and 20%.

i dunno. 0.4x just feels too low (AEO at 0.8x).
Print the post  

Announcements

What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.