US: Abercrombie & Fitch hires Goldman Sachs?
Pressure from investors has spurred teen apparel retailer Abercrombie & Fitch to hire investment banking firm Goldman Sachs, according to reports.
Ralph Whitworth, the founder of Relational Investors, is said to have pressured A&F to cut back international store openings and spending, Bloomberg reported. Whitworth has allegedly told the teen clothing retailer it could be worth $50 a share if its spending was the same as rivals.
However, a spokesperson for Abercrombie & Fitch told just-style: "The company does comment on rumors or news reports."
Last month, the retailer saw its second-quarter net profit decline sharply on the back of slower sales in its international stores and the first drop in US same-store sales for three years.
CEO and chairman Mike Jeffries described the results as "disappointing" as US sales slipped 5% to $648m, while comparable store sales declined 10% over the quarter.
In June, Abercrombie & Fitch earmarked a further 180 underperforming stores to close over the next few years to improve efficiency and reduce expenses. This came after the retailer revealed it has closed 135 stores in the past two years.
Teen clothing retailer Abercrombie & Fitch has confirmed plans to close up to 50 stores in the US this year as it revealed a downbeat forecast for the first quarter. ...
Teen clothing retailer Abercrombie & Fitch has promoted Amy Zehrer to executive vice president of stores....
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