Chains like Forever 21 and H&M have dramatically slashed the price of clothing in the past decade.
The struggling teen brand has promised investors a “resurrection” this fall.
On Abercrombie & Fitch’s “Look Policy.”
The teen retailer, in its first earnings call since the exit of modern-day founder and CEO Mike Jeffries, said it continues to change the things that made it so cool in the 90s.
Under former CEO Mike Jeffries, Abercrombie & Fitch developed a hyper-specific look for its customers and its employees. That look has now stumbled its way into the Supreme Court.
Mr. Grey will see you now. NSFW.
It wasn’t “just a phase.”
The company has been testing putting outposts of its kids clothing chain in stores meant for teens and adults. Critics question whether it’ll interfere with its other strategy of attracting college-age shoppers.
Mike Jeffries, who built up Abercombie’s sex-meets-Ivy League aesthetic in the 90s, is the focus of a shareholder lawsuit claiming poor governance at the fashion chain.
“We are clearly disappointed with our results for the third quarter,” Abercrombie & Fitch’s CEO Mike Jeffries said. Sales at the fashion chain dropped by 7% in the U.S., and 15% internationally.
The move, another part of the retailer’s efforts to win back American teens, illustrates how dramatically Abercrombie has changed in the past decade.
The retailer is trying hard to convince teenagers it’s a brand for their generation.
Corporate boards will typically tolerate a founder’s eccentricities, and even bad behavior, as long as the business is performing well. But as performance declines, so too does tolerance.
The retailer, which is pursuing a turnaround, conveys a new image in its quarterly filing. “Idolized and respected” have been swapped for “confident and engaging.”
Abercrombie hopes its version of America resonates more in China, as its brands keep losing steam in the U.S. and Europe.
The teen retailer avoided a showdown at its annual meeting in June by agreeing to replace four people on its board of directors. Only one was nominated by hedge fund Engaged Capital.
The retailer won’t say when the clothes will be available or how much they will cost. It’s worth noting that April Fool’s Day is right around the corner.
Aeropostale’s stock plunged 20% and closed at the lowest price since 2003 after reporting truly dismal earnings.
The teen retailer’s stock jumps after exceeding analysts’ low expectations for the fourth quarter, but its stores are still struggling mightily in the U.S. and Europe.
The teen retailer’s future direction will be determined over the next four months.
Investment bank Jefferies sent clients a note Friday titled “Teenage Wasteland: Assessing the Post-Apocalyptic Future of Teen Retail.” According to its survey of more than 1,000 teens, American Eagle has more “brand relevance” than rivals Aeropostale and Abercrombie & Fitch.
“This public nomination follows the failure of weeks of private outreach to the board to arrive at a negotiated settlement,” Engaged Capital said in a statement Thursday. Update: Abercrombie says it “will review Engaged Capital’s director nominations as part of its normal process and will present its recommendation with respect to the election of directors in its proxy statement.”
Chubbies, an online-only shorts company, pens an open letter to Abercrombie CEO Mike Jeffries.
The teen retailer today promoted its chief financial officer, Jonathan Ramsden, to the role of chief operating officer. Abercrombie may be getting its house in order to court buyout offers.
The company announced that Jeffries, CEO since 1992, will no longer be the company’s chairman and that it’s adding three new directors with retail experience to its board. Updates with response from Engaged Capital.
The teen retailer’s stock fell after announcing CEO Robert Hanson will be leaving “effective immediately.” Its executive chairman will temporarily fill the role while it looks for Hanson’s replacement.
Jonathan Ramsden has gained more influence and decision-making authority at Abercrombie as CEO Mike Jeffries’ hold on the company grows more tenuous, sources told BuzzFeed.
Vera Bradley, TJX, and American Eagle will be impacted the most based on their store count in the Northeast and Midwest, Citigroup analysts say.
Promotions appear to be deeper than during the recession in 2008, a Nomura analyst writes.
Engaged Capital, which last week sent a nine-page open letter to Abercrombie’s board calling for CEO Mike Jeffries’s ouster, is “disturbed” to learn his contract was extended today.