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Major Fund Buying; Citadel Boosts Stake in Abercrombie & Fitch (ANF)

Ken Griffin’s Citadel LLC raised its stake in clothing retailer Abercrombie & Fitch Co. (NYSE: ANF), according to a recent regulatory filing.

According to the filing, funds of Citadel held 5.2 million shares of ANF common stock as of November 14, 2012. This is significantly above the fund’s stake at the end of September 30, 2012.

On November 14, Abercrombie & Fitch also reported strong third-quarter financial results. For the quarter ended October 27, 2012, the company reported net income of $71.5 million, or $0.87 per share, compared to net income of $50.9 million, or $0.57 per share reported for the same period in the previous year.

Abercrombie & Fitch, which is a specialty retailer of casual apparel for men, women and kids, reported a 9% increase in its third-quarter net sales to $1.170 billion. The company’s total U.S. sales, which include direct-to-consumer sales, were around $818.6 million. International sales, including direct-to-consumer sales, rose 37% to $351.1 million.

ANF’s total comparable store sales for the quarter fell 3%.

Mike Jefferies, Chairman and CEO of Abercrombie & Fitch, last month said that the improved financial result reflect progress on several fronts over the past quarter.

Abercrombie & Fitch expects full-year earnings to be between $2.85 per share and $3 per share. The forecast is based on a mid-single digit percentage decrease in comparable store sales for the fourth quarter and a slightly higher gross margin rate for the fourth quarter relative the first three quarters.

Since reporting the quarterly results, ANF shares have gained more than 50%. Year-to-date, however, the stock is still down nearly 4%, underperforming the S&P 500.

In today’s trading, Abercrombie & Fitch shares are marginally higher. At last check, ANF shares were trading 0.81% higher at $47.28.


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