Abercrombie & Fitch CEO Mike Jeffries Blames His Problems On The European Economy

woman dress abercrombie

Photo: abercrombie.com

Abercrombie & Fitch got battered in the second quarter, reporting that net income had tumbled to half of what it was last year.And CEO Mike Jeffries doesn’t plan to change much about the customer experience, he told investors on a conference call today.

He said that the bad European economy, and not missteps from the brand, are to blame for the “disappointing” results.

“We continue to believe the macroeconomic environment situation in Europe has continued to become more difficult,” Jeffries said on the conference call today.

And while the CEO has tweaked plans for inventory and supply, he doesn’t plan to make any big changes with product.

“Do our stores continue to stand out in excitement and energy?” Jeffries asked. “The answer is yes.”

NBG Productions retail analyst Brian Sozzi struck back in a note he emailed to us this morning, saying that Abercrombie should reconsider its product offerings:

“Management dropped the classic line “we can control what is in our control”, implying that sub-optimal performance was solely a function of global macro deterioration.

Let’s be real, the fact is teen clothing preferences have moved away from Abercrombie’s American prep aesthetic (as their budgets have shrunk and get sliced into from new competing purchases). 

That is a factor beyond management’s control (company is not a trendsetter), and it will take more than tapered fits in denim and hoodies and the displaying of them to Facebook followers to disguise the wares as being on trend enough to reignite traffic.”

DON’T MISS: 11 Reasons Why People Hate Abercrombie & Fitch >

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