Shares of Abercrombie & Fitch (NYSE:ANF) fell 21% in mid-morning trading on Monday after the company announced it will end talks to sell itself.
Last month, Abercrombie accepted final bids from interested parties. However, the company couldn’t come to terms with its suitors and has decided to not sell itself. In reaction to this, shares of ANF are trading at a 17-year-low.
“After a comprehensive review of all relevant factors, with the assistance of our financial advisor, the A&F board of directors determined that the best path to enhance value for stockholders is the rigorous execution of our business plan,” said Arthur Martinez, the company’s CEO, in a statement.
“We believe in the prospects for our business and the opportunities for our brands,” Martinez said.
Abercrombie & Fitch announced on May 10 earlier this year that it was considering selling itself. Famous for its jeans and logo-stamped shirts, the company has been struggling in recent years because of competition from fashion giants Forever 21, H&M, and Zara.
Efforts to rebrand itself have not proven successful for Abercrombie & Fitch, either. The retailer has tried to modernize its brand by redesigning its stores, removing its logo-heavy styles, and dropping its heavy sexualized advertising. However, these efforts don’t seem to be working as the company plans on closing 60 stores by the end of the year.
ANF remains a Zacks Rank #3 (Hold). While the company faces many challenges moving forward, the company has a value style score of ‘B.’
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Abercrombie & Fitch Company (ANF): Free Stock Analysis Report
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