Former Abercrombie & Fitch Company (NYSE:ANF) CEO Mike Jeffries has entered a plea of not guilty to allegations of sex trafficking and interstate prostitution.
Attorneys submitted the plea on Jeffries’ behalf in a New York federal court located on Long Island, reported BBC. He sat alongside them, clad in a sharp navy blue suit, his face revealing no emotion.
Jeffries faced indictment on Wednesday for 16 federal charges involving sex trafficking and international prostitution, with allegations suggesting he utilized a network of employees, contractors, and security personnel, while leading the retailer, reported CNN.
Jeffries, who joined Abercrombie & Fitch in 1992 and led the company to its dramatic rise, stepped down in 2014 after declining performance, including 11 consecutive quarters of negative comparable-store sales.
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According to Benzinga Pro, ANF stock has gained over 15% in the past six months. Investors can gain exposure to the stock via Two Roads Shared Trust Conductor Global Equity Value ETF (NYSE:CGV) and Alpha Architect U.S. Quantitative Value ETF (NASDAQ:QVAL).
According to a report from ABC News, Jeffries’ partner Matthew Smith and a third man, Jim Jacobson, were also arrested in the investigation into possible sexual exploitation and abuse of young men.
Jacobson also entered a not guilty plea immediately after the former CEO. Meanwhile, Smith is set to make his courtroom debut in New York at a later date, BBC added.
The FBI opened an investigation into the former A&F CEO last year after a BBC report uncovered multiple men alleging that Jeffries and Smith sexually abused them at events hosted in their New York homes and hotels worldwide.
However, Jeffries will be placed under house arrest, permitted to leave his residences in New York and Florida only for medical appointments, meetings with his lawyers, and religious gatherings.
Meanwhile, the company will report its third quarter results on Tuesday, November 26, 2024. The street view for adjusted earnings per share is pegged at $2.36, while the analyst consensus estimate for quarterly revenues stands at $1.18 billion.
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