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.
Luxury handbag resale company @rebagofficial is planning to sell a rare collectible for $70,000: the @hermes White Crocodile Himalayan Birkin. The exclusive Birkin sold for about $100,000 in 2008, when @davidbeckham bought one for his wife @victoriabeckham to add to her collection. Read more about the rare Birkin on WWD.com #wwdaccessories
With her costume pearl necklace and what-you-see-is-what-you-get style, Barbara Bush, who died Tuesday at age 92, was a straight-shooter from start to finish.
Born Barbara Pierce in New York City, Bush served as the 37th first lady, as well as the country’s second lady from 1981 to 1989. In addition to being part of the longest presidential marriage — 73 years — Bush also had the unlikely distinction of having one son, George W., become the 43rd president and another son, Jeb, run unsuccessfully in 2016. Having served as second lady during the Reagan administration’s two terms and lived all over the world during her own husband’s ascending political career, Barbara Bush made it clear that literacy — not fashion — was her priority. Read more from Rosemary Feitelberg’s obituary on the late First Lady in WWD.com, link in bio. #barbarabush #wwdnews
Western and ’90s trends have influenced denim for fall 2018. Think raw, dark and coated jeans mixed with bold prints and tough leather. #trendtuesdays #wwdfashion (Styled by @thealexbadia;📷: @ryanplett)
@denimdaysfestival, which initially launched in Amsterdam in 2014 and has since expanded to New York, is heading to Nashville for the very first time. The two-day festival, which will take place in November, will feature brand activations, hands-on workshops by artisans and denim mills, a vintage market, live entertainment, and local food and drinks. Get all the details on WWD.com. #wwdnews #wwdfashion
Later this month, the popular “Diana: Her Fashion Story” exhibit will be reopening. @historicroyalpalaces, the charity that manages @kensingtonroyal, has been working towards adding new, never-before-seen garments to the exhibit, including this dress created by Gianni Versace for a fund-raising dinner at the Museum of Natural History in Chicago. The exhibit will reopen on April 26 at Kensington Palace @wwdfashion
“Our family has always been engaged and interested in the world around us. [My brothers and I] were always encouraged to have our own opinion at a young age, which is not always something a child is asked — especially to have an opinion with reasoning behind it,” said @yarashahidi on becoming an activist. We caught up with the 18 year old last week, where she talked about her road to acting, how “Black-ish” led her to start conversations about identity and more. Head to WWD.com to read what she had to say #wwdeye (📷: @chelsealaurenla)