American Eagle Jointly Bid For Private Equity A&F

According to the world clothing and shoe net, American Eagle Outfitters Inc. (NYSE:AEO) is jointly engaged in private Holdings Company Cerberus Capital Management LP bron asset management bid two weeks ago confirmed that it intends to accept the acquisition of Abercrombie Fitch Fitch (Inc.), which stimulated the stock price up to 11.4% to 11.53 dollars in the intraday market on Wednesday, 24, and the largest increase of 4.2%.

It is reported that other private Holdings Company and

Retail partners also participated in bidding for Abercrombie & Fitch Co., including the more mature Express Inc. (NYSE:EXPR) of the target audience.

However, Cerberus Capital Management LP, which specializes in acquiring financial difficulties, and American Eagle Outfitters Inc., which belongs to the field of youth clothing, is seen in the forefront.

Cerberus Capital Management LP, founded in 1992, currently manages more than $30 billion of assets. In recent years, investments in consumer and retail businesses include Avon Products Inc. (NYSE:AVP) Avon Co.

The former has contributed to the North American business spin off by investing $605 million in Avon Products Inc. Avon Co, and has won the New Avon LLC 80% stake in the new North American business.

In fact, no matter Abercrombie & Fitch Co., American Eagle Outfitters Inc., or Express Inc. can not match the deterioration of the US retail environment and the change of consumption mode, the situation of performance has continued to decline significantly.

Among the three, American Eagle Outfitters Inc. has been relying on girls.

The brand Aerie, "the salted fish turn over", has a strong sales growth momentum. Although the profit needs to be improved, it is still the best among the three largest youth clothing retailers in the United States.

As for A ropostale Inc., she was once bankrupt by two retail developers.

Management company Authentic Brands Group LLC rescued from bankruptcy.

Analysts believe that the strong financial resources of Cerberus Capital Management LP and the potential synergistic benefits of American Eagle Outfitters Inc. Inc. and Abercrombie Fitch Co. merger are all advantages over other acquisition proposals.

In fact, Express Inc. and Abercrombie & Fitch Co. belong to the predecessor of L Brands Inc. (NYSE:LB), Limited Brands Brands, which evolved from the product line of the company launched in 1980. In 2007, the 75% stake of the brand was sold to the private Holdings Company.

Abercrombie & Fitch Co. was acquired by Limited Brands Inc. in 1988 for $46 million, and the company was split up in 1996.

According to the world clothing and shoe net, Abercrombie & Fitch Co. will decide who to spend the next month.

Abercrombie & Fitch brand new new image store

Abercrombie Fitch Co. (NYSE:ANF) has been hovering over the past 17 years since its operation has been unable to recover, and the shares of Co. & amp; Fitch (NYSE:ANF) have been hovering over the past decade.

According to its closing price of 24 US dollars for 12.89 days, the market value of Abercrombie & Fitch Co. is less than US $860 million. In 2007, the group's stock price and market value reached 85.77 US dollars and over 7 billion US dollars respectively.

Data show that its net sales in the 2016 year ended January 31st were $3 billion 326 million 700 thousand, down 5.5% compared to the same period last year, net profit decreased by 88.9%, from 35 million 576 thousand US dollars in the 2015 fiscal year to 3 million 956 thousand US dollars, and adjusted to EPS -0.06 from US $1.12 in the 2015 fiscal year to US $.

The group's same store sales have not been able to grow for 16 consecutive 4 years. The former CEO Mike Jeffries has been stepped down in 2014, but it was not until February this year that the new CEO was appointed to give the CEO Fran Horowitz a promotion.

In his March earnings report, he pointed out that his expected performance reflects the challenging and competitive retail environment, and is expected to continue to be challenged in 2017.

Although the Hollister brand that has contributed more revenue to the group has resumed growth in the same holiday season during the holiday season, it is the first time in the past year, but the same name brand Abercrombie & Fitch is still in the doldrums. The crucial holiday sales in the same store have plummeted by 13%. The group expects the brand to improve this year after changing its meat image and upgrading its design and store concept, but management has refused to make clear that "improvement" means restoring growth or reducing the decline.

Last year, the group has closed 54 stores. As of the end of January, there are 709 and 189 stores in the US and the international market. This year, it will also end 60 stores with the expiration of the lease.

About half of the 709 U.S. stores will be closed before the end of fiscal year 2018, which means that next year, the group will give the group more room to adjust its retail sales.

Joanne Crevoiserat, chief financial officer, said that they had not been very polite about closing stores. In the past 5 years, the group has closed hundreds of stores.

The group will also cut 150 corporate jobs this year.

Fran Horowitz has stressed that despite its poor sales and earnings performance, the balance sheet remains robust.

As of January 28th, the group had 547 million 200 thousand dollars in cash and cash equivalents.

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Analysts warned Abercrombie and Fitch Co. and American Eagle Outfitters Inc., the risk of merging two entity retailers.

According to the world clothing and shoe net, American Eagle Outfitters Inc. has reached 1053 stores in North America in the first quarter of April 29th. The group plans to add 15-20 new stores and 15 stores in the North American market this year, with the same brand and Aerie Aerie, closing 20-30 and 5-10 stores respectively, while the international market will increase 43 authorized stores.

Global brand President Chad Kessler said that over the next three years, more than 500 stores in North America will expire, and the group will renew contracts flexibly.

Compared to the struggles of Abercrombie & Fitch Co., the Group recorded an increase in the same store sales in the first quarter, while the same store sales increased by 2% year on year, and the combined forecast of Consensus Metrix exceeded 0.7%.

Among them, the brand of the same brand continued to be weak, down 1% year-on-year, while the girl underwear brand Aerie increased by 25%.

But sharp sales seriously damaged profits, net profits fell 37.7% to 25 million 240 thousand dollars, adjusted EPS $0.16 is also less than market expectations.

American Eagle Outfitters Inc. (NYSE:AEO), on Wednesday, closed at $11.32, an increase of 2.3% a day and a market capitalization of about 1 billion 990 million dollars, two times more than Abercrombie & Fitch Co., which has fallen 25.4% in 2017.

Abercrombie & Fitch Co. (NYSE:ANF) has risen 5.7%, and the stock has fallen 47.2% in the past 12 months.

Abercrombie & Fitch Co. will announce its first quarter results before today's earnings per share.

The market expects that the EPS of the group will expand from $-0.59 a year earlier to -0.70 to -0.72 dollars. Net sales will decrease by 5% to $651 million compared with the same period last year, and the same store sales will also drop by 5%.

JPMorgan Chase & Co., JP Morgan analyst Matthew R. Boss, predicted that the group would record a net loss of $0.72 per share, because he pointed out that the same brand Abercrombie & Fitch was discounted throughout the first quarter.

Adrienne Yih, a senior analyst at Wolfe Research LLC, also believes that even if the potential of Hollister store growth is large, it still can not offset the negative growth of the brand of the same brand. Moreover, the prospect of the same brand selling the same store selling trend is not optimistic when the passenger flow headwinds and discounts deepened further. The successful case in retail history is also very limited. She gives Abercrombie recommendation Fitch Co. (NYSE:ANF) the recommended rating for "losing the big market".

Wunderlich Securities Inc. analyst Eric Beder also recommended selling "Abercrombie" Fitch Co. (NYSE:ANF) shares, because the group "has never been able to find answers to the puzzle of revitalizing the same brand". He believes that the group will not be able to recover in the short term, even if the offer is limited by the limited cost synergies and the weakness of the same brand, and the cash premium can not be obtained.

His target price for Abercrombie & Fitch Co. (NYSE:ANF) is US $12.

Vince Martin, a stock analyst, has warned Ascena Retail Group Inc. (NASDAQ:ASNA) that the risk of merger between the 2 billion 160 million and the Ann Taylor parent Ann will be warned two years ago.

Ascena Retail Group Inc.'s women's clothing brand and Ann Taylor are all the main source of revenue from shopping malls and physical stores. Not enough pformation and innovation have made the group's performance and prospects extremely weak. After the quarterly announcement in May 17th, the stock price fell more than 40%, a record low since 2000.

In recent years, many young retailers in the US disadvantaged retail outlets have collapsed due to poor management. Besides the above-mentioned A e ropostale Inc., there are also Wet Seal Inc., American Apparel LLC and Rue 21 Inc.. In the same garment industry, the first half of this year, the application of the company's bankruptcy has been filed.

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