Deutsche Bank downgrades Abercrombie to sell two days before Black Friday on failing turnaround

A pedestrian stands outside of the Abercrombie & Fitch store on Fifth Avenue in New York City.
Craig Warga | Bloomberg | Getty Images

Deutsche Bank isn't waiting around to see how Abercrombie & Fitch's Black Friday went.

The firm cut the teen apparel retailer to sell from hold, saying the company's earnings results will come in below expectations in the coming year.

"We are downgrading ANF ... as we see a prolonged recovery for the Abercrombie brand ... [lowering her ANF price target] reflecting the competitive environment, merchandise miscues, and tourism headwinds," analyst Tiffany Kanaga wrote in a note titled "Pre-Thanksgiving Rally Full of Stuffing, Not Meat" to clients Wednesday.

"Without ANF participating in the perceived industry inflection, and without visibility as to when it might see a lessening or reversal of tourist & international challenges, we lack the key catalyst necessary to drive better comps, in our view."

Abercrombie & Fitch reported weaker than expected third-quarter financial results last Friday. The shares are down 43 percent this year through Tuesday. However, the stock was up 6 percent Monday and Tuesday of this week on the hopes the worst was priced in. Deutsche Bank disagrees.