Shares strutted 10.97% higher to US$14.07 in early US trade after Reuters reported Abercrombie has been working with investment bank Perella Weinberg Partners to field bids from other retailers.
With shares trading at a 17-year low as fierce competition weighs on profits, Abercrombie has become a takeover target.
The company’s logo-stamped t-shirts and sweaters were once popular among teenagers but have lost their fashion appeal. Operating income fell to US$15.2mln last year from US$72.8mln in 2015 amid competition from fast-fashion and online rivals.
Sources told the media outlet there was no certainty a deal would happen. Abercrombie and Perella both declined to comment.
Shares in the preppie clothing company rose 12.2% on Wednesday to close at US$14.22, valuing the company at US$970mln.