No deal as teen apparel retailer decides to go it alone

Abercrombie & Fitch Co. has taken itself off the selling block.



The teen retailer said it has ended talks regarding a potential sale and will instead continue to focus on turning around its business as a standalone business.



In May, Abercrombie announced it had started preliminary discussions with several parties regarding a potential sale. Among those reportedly interested was rival American Eagle Outfitters, which was working on a joint bid with Cerberus Capital Management, according to various reports. But in a statement on Monday, the retailer said that following a review, it has determined "that the best path to enhance value for stockholders is the rigorous execution of our business plan."



"We believe in the prospects for our business and the opportunities for our brands," stated Arthur Martinez, executive chairman. "We are generating solid comp store sales momentum at Hollister and continue to refine and implement strategies to position the Abercrombie brand for revitalized performance. We are committed to taking sound, aggressive action to deliver enhanced performance and long-term stockholder value.”



Abercrombie has been struggling with sluggish sales for several years as its namesake brand lost much of its allure, a result of changing fashion trends and a backlash against what some viewed as its exclusionary stance. It also has been hit hard by declining mall traffic, and online and fast-fashion competitors. The retailer has been working to turn its business around, including launching a new marketing campaign, to mixed results. The one bright spot has been the company's California-inspired Hollister division.



In May, Abercrombie reported that its first-quarter net sales fell 3.6% to $661.1 million, which was better than expected. Same-store sales at its namesake brand fell 10%. Hollister, however, experienced a 3% increase in its comparable sales.



"Our strong management team and dedicated people, the investments we have made in marketing, omnichannel and other strategies to drive sales, together with our relentless focus on operational efficiencies, all contribute to our expectation for improved trends beginning in the second half of the year, compared to the prior year period," Martinez said.



Abercrombie operates approximately 900 stores under the Abercrombie and Hollister brands across North America, Europe, Asia and the Middle East in addition to e-commerce sites.