Jim Cramer on Abercrombie and American Eagle earnings: Limit downside on teen retailers

Group 1: Company Performance - Abercrombie & Fitch beat earnings estimates but cut guidance due to anticipated challenges from tariffs [3] - American Eagle Outfitters missed earnings expectations and recorded a 75 million write-down on spring and summer merchandise [2] - Abercrombie & Fitch is down 47.49% year-to-date, while American Eagle is down 34.25% [1] Group 2: Management and Strategy - Cramer expressed confidence in Abercrombie's CEO Fran Horowitz, who has successfully turned around the brand after years of struggles [3] - American Eagle's decision to announce a 200 million buyback amidst weaker business performance was viewed as strange, as it reduces the company's flexibility [2] - Abercrombie's offshoot brand, Hollister, has seen same-store sales growth, contrasting with declines in the flagship brand [3] Group 3: Market Sentiment and Recommendations - Cramer advised caution with teen retailers due to the fickle nature of teenage consumers [1] - There is potential for Abercrombie's stock to be a buy if Hollister maintains momentum and the flagship brand improves [4] - A JPMorgan event featuring Abercrombie management could influence stock movement positively [4]