UPDATE: Citi Lowering Price Target on Abercrombie & Fitch

Citi Investment Research is out with a research report on Abercrombie & Fitch (NYSE: ANF) and it is lowering its price target to $68 from $72, but is keeping its Buy rating on shares.

In a note to clients, Citi Investment Research writes, "ANF gave investors little to work with yesterday, and we see the stock range-bound until investors get more color on Europe. By our estimates, ANF's London and Milan flagships comped down (10%) to (20%) in the quarter. The company has been using those stores to fund market share gains in the U.S., but material AUR increases in the fall reached limits and units declined along with traffic. International AUR was up significantly, offsetting a material decline in the US business. London and Milan had been operating with four wall margins well north of the 35% threshold for A&F flagship stores (which carries a ~20% operating margin) but questions remain on the scope of the impact across the rest of the fleet."

Shares of ANF lost $14.75 yesterday to close at $59.26.