Abercrombie Looks to Lure Back Teens by Dropping Logo
Mia Lindog | | Aug 29, 2014 11:37 PM EDT |
Abercrombie & Fitch Co. reported weaker sales on Thursday as the teens who once flocked its stores are now going elsewhere to buy their clothes, the Associated Press reported.
The New Albany, Ohio-based retailer reported that revenue fell 5.8 percent to $890.6 million, short of analyst estimates. A&F said it earned $12.9 million, or 17 cents per share in its fiscal second quarter. That compares with $11.3 million, or 14 cents per share, a year earlier. Earnings, adjusted for non-recurring costs, came to 19 cents per share, the AP reported.
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Analysts attribute the A&F's waning popularity to the changing fashion tastes of teens who now prefer clothes that can be worn a number of ways instead of the company's items emblazoned with its Abercrombie logo.
The company has recognized that its customers are no longer looking for its once vaunted Abercrombie logo and promised investors that these are on its way out. A&F CEO Mike Jeffries said earlier that the company plans to bring its North American logo business to practically nothing.
But that is just one of the challenges faced by A&F and other traditional teen stores. The switch to online from mall shopping, competition from other fashion chains that offer cheaper options to teens and the frugality of shoppers are the other issues they've had to contend with.
Aside from A&F, clothes retailers Aeropostle and American Eagle have reported unimpressive sales during the period.
Despite the weak second quarter sales, A&F statement on its second quarter performance remained hopeful that its move to stock more trendier clothing in favour of its traditional items will help its recovery.
The AP reported, aside from phasing out its logoed merchandise A&F also plans to hasten introduction of new items and changing its color palette to keep up with competition. The newswire said the company used black in its clothes for the first time, while new designs have received good reviews.
Tagsabercrombie, teen fashion
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