Buyers dumped shares of Abercrombie & Fitch on Monday after the Ohio clothier stated it had damaged off talks with potential consumers.
The agency, which as soon as drew teen consumers with advertisements that includes scantily-clad fashions, has struggled extra lately with falling gross sales.
However shares rose in Might after the agency, which additionally owns the Hollister model, stated it was contemplating promoting itself.
The inventory plunged greater than 20% on Monday after these talks ended.
Abercrombie boss Arthur Martinez said the agency’s marketing strategy provided a greater guess for shareholders than a sale.
“We consider within the prospects for our enterprise and the alternatives for our manufacturers,” he stated in a press release.
“We’re dedicated to taking sound, aggressive motion to ship enhanced efficiency and lengthy-time period stockholder worth.”
Abercrombie reported a quarterly loss in Might, with gross sales down four% yr-on-yr. The agency is considered one of many US retailers seeing unsure progress this yr.
However Mr Martinez stated the agency had seen “strong” gross sales momentum at its Hollister shops and anticipated to see enchancment within the second half of the yr.
Abercrombie operates about 900 shops globally. The potential consumers had reportedly includedAmerican Eagle and Cerberus Capital Administration, a personal fairness agency.
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