Prudential downgraded Abercrombie & Fitch (ANF ) to neutral from overweight.
Analyst Stacy Pak says she suspects August comparable sales will be under pressure and she now looks for -9% comparable sales for the month. She notes spending in a number of different areas looks to be rising at a time when she doesn't believe the top line is improving. As such, she's worried about potential pressure on operating earnings.
As a result, Pak cut the $2.44 fiscal 2005 (Jan.) earnings per share estimate to $2.32, and cut the $2.74 fiscal 2006 estimate to $2.60. She reduced her $41 target to $30.