Abercrombie & Fitch decides to lose the logo A man holds shopping bags from retailer Abercrombie & Fitch while waiting to cross a street in New York (Reuters)
Abercrombie & Fitch decides to lose the logo
Lexile

The Abercrombie & Fitch logo has lost the power it once wielded.

Shares of Abercrombie & Fitch Co. fell Thursday after the retailer reported weak sales as more teens shop elsewhere.

The company is trying to stock trendier clothing and it turns out that means stripping off the once-prized Abercrombie logo.

It is a major change for the retailer, whose sweatshirts and T-shirts emblazoned with its name long held major cachet with teenagers. Now, individuality is the name of the game.

"Personal style, specifically with teens, is becoming less about fitting in and more about standing out," said Lauren Wolfenden, a senior advisory analyst at WGSN, a fashion trend consultancy. "A&F has wised up to this by phasing out the cookie-cutter logo-ed product look and bringing in trendy pieces that can be worn in a multitude of different ways."

A&F and other traditional teen stores have to adapt in an uphill battle to turn their businesses around as mall traffic drops and shoppers' tastes change.

A slowly recovering economy is making parents and teens to think twice about splurging on clothes. Expensive standbys like Abercrombie also have lost business to "fast fashion" chains like H&M, known for quickly churning out trendy $9 tops.

Teens are also spending less time at the mall and more time researching and buying on mobile devices. And when they do buy, they're more likely buying the latest gadget than filling their closets.

Last week, Aeropostale last week reported its seventh consecutive quarterly loss on slumping sales. It also forecast another loss in the current quarter.

Mike Jeffries, A&F's CEO, said in a statement that the retailer has made progress in stocking trendier clothing and said the improvement is "clearly evident" in its back-to-school business.

"In a continuing challenging environment, our sales for the second quarter were somewhat below plan, but we have seen modest improvement since the back-to-school floor set," he added.

A&F has been shortening the time from developing a design to shipping the clothing to the stores. It's also changing its color palette.

WGSN's Wolfenden said Abercrombie announced earlier this year that it would start using black in their collections, something it had never done before. She praised some of the current fashions in the stores, which include Aztec printed silky pants, sleek maxi-dresses and slouchy T-shirts with scenic images and French sayings.

But the big change, of course, shoppers are seeing is clothes that don't shout the Abercrombie name.

For the fall shopping season, A&F has reduced its logoed merchandise by half, and plans to go further.

"In the spring season, we are looking to take the North American logo business to practically nothing," Jeffries told investors on a conference call.

Critical thinking challenge: What does Abercrombie hope to gain by losing the logo?

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COMMENTS (41)
  • Damikus123
    9/02/2014 - 08:46 a.m.

    Abercrombie is on of my favorite places to shop .
    Clothing from there to me is impressive and classic, also many teens shop here.
    I cant believe the retailer is going out like this but at least the company is trying to do better on clothing

  • GhettoKromper2
    9/03/2014 - 09:40 a.m.

    My opinion is that I don't get the point of Abercrombie dropping their logo because that's why most people buy their things, for that logo. If changing things to maxi dresses, Aztec pants, and slouchy t-shirts will draw the teenage crowd back then so be it.

  • DD2001green
    9/05/2014 - 09:05 a.m.

    I think Abercrombie and Fitch should not change its logo because its one of the best clothing in the country. So if they change one thing about it teens might not like it anymore.

  • AV2000RED
    9/05/2014 - 09:11 a.m.

    Abercrombie Hope To Gain More Costumers By Losing The Logo , Because People Are Shopping At Other Stores But Now By Dropping The Logo Costumers Are Seeing Clothes That Doesn't Say Abercrombie

  • colleenl-Ste
    9/08/2014 - 01:24 p.m.

    I think its good that popular stores are reverting their styles because change can be good. In this situation, it should have a more positive turn out and maybe it will draw teenagers back to filling up their closet rather than buying the new devices out on the market.

  • Reecesh-Fre
    9/09/2014 - 01:15 p.m.

    When I read this article I wondered if they were losing customers because of the originality phase, or maybe that they were to much for some families to buy. A&F plan is to eliminate the logo and bring more customers in to the store. Another thing that they plan on doing to there products is that they want to add a little more black into there styles. One thing that I read in this article that I think will work and bring more customers is that they wrote that they were planning on selling clothes that have multiple uses.

  • CTiffani-Cas
    9/09/2014 - 05:12 p.m.

    I think the reason why Abercrombie & Fitch are losing the logo is because more schools are doing school dress code and wont allow logos. Abercrombie obviously doesn't want to lose business to retailers like Aeropastle or H&M for their logo free apparel and cheaper pricing. In a long run adding black to their clothes, losing the logo, and lowering prices will save them money and save them from losing customers.

  • madi2-Bor
    9/10/2014 - 10:39 a.m.

    they would maybe gain more people to come now sense they have new clothes. When are they coming out with new clothes cause i would like to see all of the new clothes like the Aztec pants?!

  • Will2-Bor
    9/10/2014 - 10:44 a.m.

    I think they hope to gain attention. If that happens they will get more business. To me it really doesn't matter because i never liked Ambercrombie. I always liked Aeropostal.

  • amberly2-Bor
    9/10/2014 - 10:44 a.m.

    I think Abercrombie hopes to gain more customers by losing the logo. Abercrombie is a great store but like the article said kids are wanting to focus on standing out other than fitting in.

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