NEW YORK (TheStreet) -- Shares of Abercrombie & Fitch (ANF) were gaining 6.7% to $28.09 in pre-market trading on Tuesday after announcing that Michael Jeffries is retiring as CEO and a member of the clothing retailer's board of director, effective immediately.
The company's current non-executive chairman Arthur Martinez will become executive chairman following Jeffries' retirement.
Abercrombie & Fitch's board also announced that it created an Office of the Chairman which consists of Martinez, COO Jonathan Ramsden, Brand President of Abercrombie & Fitch Christos Angelides, and President of Hollister Fran Horowitz. The Office of the Chairman will oversee all day-to-day operations until the company can name a new CEO.
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TheStreet Ratings team rates ABERCROMBIE & FITCH as a Hold with a ratings score of C. TheStreet Ratings 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 increase in net income, largely solid financial position with reasonable debt levels by most measures and growth in earnings per share. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself and disappointing return on equity."