Abercrombie reportedly mulling options for China business

US retail giant Abercrombie & Fitch Co. is believed to be exploring strategic options for its China business, including bringing in local partners to support future growth.

According to a report by Bloomberg, which cited people familiar with the matter, the fashion retailer is working with an adviser to review its China operations in what could result in the sale of a stake in the regional arm, reportedly valued at several hundred million dollars.

The media outlet said that discussions remain at an early stage and may not result in a transaction. An Abercrombie spokesperson declined to comment on Bloomberg's report, pointing to a March announcement in which the company confirmed it was undertaking a broader strategic review of its Asia-Pacific business.

The move comes as Abercrombie tackles ongoing financial challenges evident in its quarterly report for the period ended May 2. Here, the group reported a slight increase in net sales to 1.1 billion dollars, yet a net income decline of nearly 17 percent to 67 million dollars.

Group sales remained positive in the Americas, where they increased by 3 percent, and the Asia-Pacific, where sales rose 24 percent to 46.5 million dollars. The company currently operates in the latter region via its headquarters in Shanghai.