An analyst cut his rating on shares of preppy retailer abercrombie and fitch. on Wednesday, saying that shoppers are cutting back on purchasing luxury items.
Susquehanna analyst Thomas A. Filandro downgraded the stock to "Neutral" from "Positive" and said abercrombie and fitch high prices are hurting business since consumers are reluctant to spend money.
"Although select fashion items are resonating with abercrombie and fitch core shoppers, the brand's higher priced positioning continues to create pressure on average store transactions," Filandro wrote in a client note.
Looking ahead, Filandro said that international expansion is the primary focus for growth, and abercrombie and fitch is on track to open 13 international locations this year.
"Year-to-date, international stores posted revenue of $90 million, accounting for 7 percent of total revenue, with productivity in excess of the domestic store average," Filandro wrote.
Abercrombie posted quarterly results last week and recorded a second-quarter loss of 30 cents per share, mostly because of charges and a 23 percent decline in sales.
Shares of abercrombie and fitch declined 13 cents to $31.34.
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