Abercrombie & Fitch Co. is undertaking a strategic review of its China operations, engaging an external adviser to assess options that may include bringing in local partners or selling a minority stake. The potential stake is described as being valued at several hundred million dollars, though the deliberations are at an early stage and the company cautions that a transaction may not materialise.
The retailer continues to operate a regional headquarters in Shanghai despite encountering challenges in the Chinese market. For the quarter ended 2 May 2026, Abercrombie reported net sales of $1.1 billion, representing a slight increase over the comparable period a year earlier. Net income for the same quarter declined by nearly 17% to $67 million.
Abercrombie & Fitch, headquartered in New Albany, Ohio, markets apparel, personal‑care products and accessories under the Abercrombie and Hollister brands. Its distribution model comprises company‑owned retail stores, digital channels, a third‑party wholesale business and franchise arrangements.