Piper Jaffray Overweight On Abercrombie (ANF)

Piper Jaffray has an Overweight rating and a $80 price target on shares of Abercrombie & Fitch Co. ANF. In a note to investors, Piper Jaffray writes, "Domestic stores constituted 73% of the global sales in 2010 (with international 15% and global DTC 12%). At last week's ANF Investor Day conference, management noted the global mix would be closer to a 50% split (domestic to international) by 2015 with forecasted revenues of $7.5 billion. Central to achieving this sales goal is improving the domestic store base productivity. Management recast US productivity to 90% or greater of 2007 productivity by 2012 from 85% of 2007 productivity. ANF closed 64 stores last year (27 A&F, 27 kids and 10 Hollisters) and plans to close approximately 50 by end of this year and an unnamed number in 2012. The closures should have a positive impact on sales PSF at existing locations - roughly reducing the A&F base to around 300 doors and kids to 150 by end of year." Shares of ANF lost $1.52 yesterday to close at $67.93.