Ticker Talk

The Securities and Exchange Commission upgraded to a formal inquiry its investigation of Abercrombie & Fitch Co.’s release of a sales forecast in October, the company said Tuesday. The clothing retailer previously had said the SEC was conducting an “informal inquiry” following reports that an Abercrombie executive told a brokerage analyst about a sales forecast before it was announced to the public. In a formal inquiry, the SEC has subpoena authority to obtain testimony and documents. Abercrombie shares fell $2.75 to close at $24.25 on Tuesday on the New York Stock Exchange. The price now is half the 1999 high of $50.75. The SEC’s inquiry is proceeding as the commission prepares to vote today to issue a rule proposal that would require a company to tell the public before (or at the same time) it notifies analysts of information likely to affect its stock price.