Abercrombie & Fitch (ANF) has elected to keep Goldman Sachs on as financial advisors despite pressure to lose them.
September 13, 2012- Despite significant pressure from relational investors, Abercrombie & Fitch (ANF) have decided to keep on Goldman Sachs as advisors to their significant corporation.
News of their opinion was reported by sources close to the workings of both companies. The second quarter saw the retailer increase its stake by 3.8 percent as reported by Relational. This also saw Goldman fall by -0.06, or -0.05 percent. The struggle has also been witnessed by certain moves Abercrombie & Fitch (up 0.5299, or +1.4 percent) have recently made in order to reduce the negative impact the current state of their finances will have in the long run. They have actively ensures that stores openings for them are on the decrease, and also drastically acted out to cut capital expenditures for the rest of the year.
The same quarter, the second of the year, also saw the retailer lose their previously owned stock by a phenomenal 45 percent. Furthermore, they saw their net income over the year cut by over half, with a reduction of 52 percent.
Abercrombie & Fitch, when asked on reasons behind their standing in the stocks and falling income, stated the current European situation as a major factor for their issues. However, even as the European situation begins to improve, their stocks have not reflected the situation and continue to fail.
Ralph Whitworth, from Relational, seems to continue to apply pressure on the company in order for them to drop Goldman Sachs as their shares continue to weaken. However, both Abercrombie & Fitch have made no official statement in relation to the situation and declined to comment when questioned.
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