Problem

Forecasting the Future Performance of Abercrombie & Fitch Clothing retailer Abercrombie & Fitch enjoyed phenomenal success in the late 1990s. Between 1996 and 2000, its sales grew almost fourfold, from $335 million to more than $1.2 billion, and its stock price soared by more than 500%. More recently, however, its growth rate has begun to slow down, and Abercrombie has had a hard time meeting its quarterly earnings targets. These problems were compounded by the global recession in 2009 with the stock price in November 2009 falling by 90% from its high 1 year before. Abercrombie's struggles resulted from increased competition, a sluggish economy, and the challenges of staying ahead of the fashion curve. Since 2009, the company's stock has rebounded strongly but questions remain about the firm's long-term growth prospects. Given the questions about Abercrombie's future growth rate, analysts have focused on the company's earnings reports. Thomson ONE provides a convenient and detailed summary of the company's recent earnings history along with a summary of analysts' earnings forecasts. To access this information, we begin by entering the company's ticker symbol, ANF, on Thomson ONE's main screen and then selecting GO. This takes us to an overview of the company's recent performance. After checking out the overview, you should click on the tab labeled Estimates, near the top of your screen. Here you will find a wide range of information about the company's past and projected earnings. Based on analysts' forecasts, what is the firm's expected long-term growth rate in earnings?