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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).
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