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COLUMBUS, United States — Abercrombie & Fitch Co. ended talks on a potential transaction, causing shares to plunge as much as 17 percent in early trading.
The retailer of preppy apparel reaffirmed its commitment to its brands and chairman Arthur Martinez vowed “sound, aggressive action to deliver enhanced performance and long-term shareholder value,” according to a statement Monday. The company’s board decided the best path forward “is the rigorous execution of our business plan.”
Abercrombie’s shares, which dropped to as low as $10.11 Monday in premarket trading, have gained about 1 percent this year through Friday’s close. The stock was buoyed in May when the company was said to be in talks with American Eagle Outfitters Inc. and Express Inc. as it struggles to lure back to its stores shoppers who increasingly have migrated online.
The retailer didn’t disclose more details about the proposed transaction.
By Jonathan Roeder; editors: Nick Turner, Lisa Wolfson.
