Dive Brief:
-
Abercrombie & Fitch saw shares fall again Tuesday after FBR & Co. downgraded its stock on its slow turnaround.
-
Analyst Susan Anderson noted that the retailer continues to struggle to change its image and that the strong dollar is also squeezing international sales.
-
The company has been led by a trio of executives since the departure of longtime CEO Mike Jeffries late last year.
Dive Insight:
Abercrombie recently hired new designers and merchandisers, whose efforts will likely get to the heart of some of the retailer's basic issues.
But overall the company has been badly in need of vision. The retailer is reportedly searching for a CEO but says that its turnaround is doing fine under the trio of executives who are leading it. Previous CEO Mike Jeffries’ former vision has certainly fallen out of favor, and the last vestiges of it, which remain in some of the stores and merchandise, must finally go. The retailer seems yet to figure out the desires of its young customers—who seem less interested in fashion and more interested in tech devices and spending on experiences rather than things.
Still, at least it was a vision. The question is, and has been for a while now — what’s going to replace it?
