Teen apparel retailer Abercrombie & Fitch (NYSE:ANF) announced plans to remove logos from most of its clothing after reporting the latest quarterly results.
The apparel's logo, which once made the brand "cool," has now dwindled into irrelevance as fast-fashion retailers such as Forever 21, Zara and H&M gain a larger portion of the marketshare. CEO Mike Jefferies even took a 73 percent pay cut and was stripped of his chairman title in the face of declining sales.
The company reported the 10th straight decline in quarterly same-store sales, which fell 7 percent in the quarter ending Aug. 2. Same-store sales in the United States dropped 5 percent.
Net income for the quarter was $12.9 million, up from $11.4 million the same quarter in 2013. The company stated that revenue was down 5.8 percent to $890.6 million.
Abercrombie is trying to revamp its image after Jeffries was criticized for saying the clothing line was for "cool" kids, not for "fat" people. Since then, the brand has started to include larger sizes for women and even reduced some of the pricing.
Most recently the retailer has been trying to lure back shoppers by giving Hollister stores a makeover and hiring a brand director for a newly created position.
"In the past quarter, we believe we have made great progress in evolving the fashion component of our assortment, and this progress is clearly evident in our back-to-school presentation," said Jeffries in a statement. "In a continued challenging environment, our sales for the second quarter were somewhat below plan, but we have seen modest improvement since the back-to-school floorset. We are confident that the evolution of our assortment will drive further improvements going forward, in particular as we move past the headwind of adverse likes in our logo business as we work to strategically reduce that element in our assortment."
-See this Chicago Tribune article
-See this Abercrombie & Fitch press release
-See this Bloomberg article
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