Abercrombie & Fitch CEO Mike Jeffries Retires

Mike-Jeffries1

(PCM) Is it wrong that I am a little bit happy to learn that Abercrombie & Fitch CEO Mike Jeffries has announced his retirement from the company effective immediately.

The news of Jeffries retirement comes after it was revealed that the company’s third quarter earnings were about 60 million under expectation.

Also due to all the controversy surrounding Jeffries comments about the brand’s target market and demographic the company began declining in popularity at a rapid pace.

Jeffries came under fire for his remarks that the clothing retailer was only concerned about their clothing being worn by thin and attractive individuals.  Despite the fact that the initial interview during which the comments were made occurred back in 2006, it resurfaced in 2013 and stirred up quite a social media frenzy and backlash for the company.

In a statement regarding his immediate retirement Jeffries said “now is the right time for new leadership to take the company forward in the next phase of its development.” The company which also owns Hollister Co and Gilly Hicks is currently in the search of a new CEO to replace Jeffries.

Several sources are saying that Jeffries departure from the company was inevitable as several activist investors were urging for his exit from the company for quite some time. He was reportedly stripped of his title as chairman of the company back in January.

Fittingly enough, when the news of Jeffries retirement was announced Abercrombie stocks immediately went up about 6% in trading.

I say good riddance!  Hopefully whoever else steps up as CEO can get Abercrombie back on the right path.

 

The post Abercrombie & Fitch CEO Mike Jeffries Retires also appeared on PCM Lifestyle.