In a series of corporate governance reshuffles, the teen retailer stripped Jeffries of his dual role and announced Arthur Martinez, former CEO of Sears (SHLD) and longtime retail executive, as his replacement. Jeffries will retain his position as director and CEO.
Following the announcement, shares spiked 6.4% to $37.38.
The New Albany, Ohio-based business said it had also appointed new directors Terry Burman, former CEO of Signet Jewelers (SIG), and Charles Perrin, one-time CEO of Avon Products (AVP) and Duracell, rounding out Abercrombie's board to a total 12 members.
Earlier in the month, the beleaguered retailer showed signs of improvement after comparable-store sales fell only 6% over the holiday period compared to a 14% drop in the third quarter ended October.
TheStreet Ratings team rates ABERCROMBIE & FITCH as a Hold with a ratings score of C. The team has this to say about their recommendation:
"We rate ABERCROMBIE & FITCH (ANF) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, expanding profit margins and notable return on equity. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, unimpressive growth in net income and weak operating cash flow."