Shares of Abercrombie sank on Monday after it was revealed that the retailer is no longer up for sale. Investors had been encouraged by the new sfrom May that the company was in talks with several parties for a potential sale.
Abercrombie announced on Monday that all those talks have ended. News infuriated and worried investors causing the stock to sink to a 17-year low.
The Wall Street Journal had reported that the company and its suitors failed to agree to acceptable terms.
“We believe in the prospects for our business and the opportunities for our brands,” Arthur Martinez, Abercrombie’s chairman said in a statement.
“We are committed to taking sound, aggressive action to deliver enhanced performance and long-term stockholder value.”
Despite weak sales at Abercrombie and Fitch, it sister store Hollister which is surf-inspired, has had strong sales. Sales at Hollister in the first quarter saw a 3% growth while sales at Abercrombie sank 10%.
Disclaimer: We have no position in Abercrombie & Fitch Co. (NYSE: ANF) and have not been compensated for this article.