Shares of Abercrombie & Fitch Co. shot up today on a report that the retailer hired Goldman Sachs to contend with an activist investor.
The stock rose as much as 7.8 percent and closed up 5.4 percent to $37.92 after CNBC reported the investment bank was retained help Abercrombie work with Relational Investors.
Abercrombie has stumbled lately. It is trimming back its U.S. door count and has said its newer stores overseas are hurting its more established flagships. San Diego-based Relational is led by Ralph Whitworth and, according to its Web site, “seeks to produce superior returns by using its combination of capital and experience to influence the direction of its portfolio companies.”
Relational owns 3.2 million shares of Abercrombie, or 3.8 percent of the company. Neither Abercrombie nor Relational commented replied to WWD’s request for comment. Goldman declined to comment.
Overall, it was an up day for the sector. The S&P Retail Index was up 0.3 percent, or 1.94 points, to 656 as trading settled. The Dow Jones Industrial Average rose just 9.99 points to 13,33.35.
Also gaining ground were Sears Holdings Corp., up 7.7 percent to $60.90 as it prepares to spin off its Hometown and Outlet stores; The Bon-Ton Stores Inc., 5.1 percent to $14.72; Kohl's Corp., 3.4 percent to $53.77, and American Eagle Outfitters, 3.3 percent to $23.46.
In Europe, most markets most markets gained after Germany’s Constitutional Court gave its approval to the euro zone’s permanent rescue fund.
Their decision will allow Germany’s president to sign into law the European Stability Mechanism, which will help to shore up the euro and save struggling countries. Nearly 40,000 Germans had signed a petition asking it to block the fund and instead submit the plan to a referendum.
The FTSE MIB in Milan climbed 1.2 percent to 16,419.79, followed by the DAX in Frankfurt, which was up 0.5 percent to 7,343.53, and the CAC 40 in Paris, which gained 0.2 percent to 3,543.79.
London’s FTSE 100 slipped 0.2 percent to 5,782.08.
Among the stock gaining ground were Marcolin, up 2.4 percent to 4.15 euros; Geox, 2.5 percent to 2.32 euros, and Mulberry Group, 1.8 percent to 13.24 pounds.
Losing ground were Inditex, down 3 percent to 86.70 euros; Compagnie Financiere Richemont, 2.4 percent to 59.40 Swiss francs. Burberry Group fell 1.5 percent to 10.72 after a profit warning pushed it down 21 percent Tuesday.
The euro traded at $1.28 while the pound traded at $1.60 against the dollar and the Swiss franc traded at $1.06.
My character, Dinah Madani, is just the coolest, [most] badass woman imaginable," says @amberroserevah. The actress stars in @marvel's newest series on @netflix, @thepunisher. To prepare for her role, Revah sat down with Homeland agents to get a real sense of with Dinah's day-to-day life is really like. Read our full interview on WWD.com. #wwdeye (📷: @jilliansollazzo)
A scene from the 91st annual @macys Thanksgiving Day Parade. The parade, which boasts 50 million TV viewers and 3.5 million on-site spectators, is considered one of the largest and most watched parades in the world. (📷: Jason Szenes/EPA-REX)
The circus came to @bloomingdales 59th Street on Tuesday night and lit up Lexington Avenue with acrobatic dancers, death-defying knife throwing, sword swallowing and aerial acts with no net. The 45 minutes of theatrics built up to unveiling the holiday windows depicting @swarovski crystal-encrusted circus pieces and scenes from “The Greatest Showman” – songs from the soundtrack included. See the rest of the photos on WWD.com #wwdfashion (📷: Joshua Scott)
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@chanel and @pharrell dropped what’s being dubbed as the world’s most exclusive sneakers yesterday. The Adidas Originals NMD Hu, which Williams designed in collaboration with Chanel and @adidasoriginals, has a waiting list of over 120K people who pre-registered online at chanelatcolette.fr –– and only 500 pairs are on sale. The singer predicted the resale value of the shoes could reach $40K. Read the full interview on WWD.com. Link in bio. #wwdfashion (📷: Dominique Maître)
@imanshumpert is diving deeper into his creative endeavors and relaunching his clothing line, Post 90s, and is helping to raise money for the hurricane victims in St. Maarten with a jersey he’s designed with his brother. The Cleveland Cavaliers player talked to WWD about kneeling during the national anthem, working with fashion brands and how he wants to be more than an @nba player. Read the interview on WWD.com #wwdfashion (📷: George Chinese)