Abercrombie regained popularity by distancing itself from Mike Jeffries' involvement.
Ever since Mike Jeffries left as CEO in 2014, after more than two decades, Abercrombie ditched the strongly-scented stores, model-centric atmosphere, and logo-emblazoned sweatshirts that characterized the brand during his tenure. The brand made these changes to attract back customers who had previously turned away from Abercrombie.
As per Fran Horowitz, now Abercrombie’s CEO, in 2016, “We’re a positive, inclusive brand, with a nice sensibility. It’s pretty different from what people knew of us earlier.”
Today, Abercrombie's stores are less intense and its clothes are more comfortable. The brand is now synonymous with basic, loungewear, and jackets. Instead of focusing on dressing high schoolers for school, Abercrombie aims to outfit adults for various occasions from the gym to happy hour.
The shift away from Mike Jeffries has proven to be successful for Abercrombie. The brand's sales have grown, and its stock has surged more than 400% since Jeffries stepped down as CEO.
Abercrombie in the Spotlight
Jeffries' indictment on Tuesday, along with his romantic partner and an associate over alleged involvement in a sex trafficking ring during his time at Abercrombie, has kept the brand's former CEO's shadow in the news.
However, retail analysts claim that Abercrombie's brand won't be negatively impacted by the indictment because of the significant distance the brand has managed to create from Jeffries. Customers who remember Abercrombie's bold marketing tactics have accepted the rebrand, while younger generations are unaware of the brand's past.
Jeffries' role at Abercrombie and the brand's use of male models in advertising were central to the allegations.
The indictment alleges that Jeffries and his associates recruited men for "sex events," sometimes incorporating Abercrombie products, in which the victims performed sexual acts. Many of the victims were aspiring models, who were led to believe that attending the parties would help their careers, according to prosecutors. They were also told that refusing certain requests for certain acts could harm their careers.
“While Jeffries was the CEO of one of the most recognizable clothing retailers in the world, he was using his power, wealth, and influence to traffic men for his sexual pleasure, and that of his romantic partner,” said Breon Peace, U.S. Attorney for the Eastern District of New York, at a press conference.
Abercrombie did not respond to CNN's request for comment. An attorney for Jeffries stated that he would respond to the accusations in court instead of the media.
Abercrombie's Evolution
Abercrombie became a wardrobe staple for teenagers during the 1990s and 2000s under Jeffries. Its overtly sexual advertising featuring young, shirtless male models transformed the brand into a preppy status symbol for high schoolers.
The brand was also unapologetically exclusive, refusing to produce size XL or XXL for years (a Netflix documentary in 2022 highlighted its culture of racism and discrimination).
Jeffries himself stated, "We go after the cool kids. We go after the attractive all-American kid with a great attitude and a lot of friends." "Are we exclusionary? Absolutely."
However, the brand alienated customers. Fast-fashion competitors like H&M emerged, winning over customers during and after the 2008 recession. Sales declined, and by the time Jeffries left as CEO in 2014, the brand faced race and sex discrimination lawsuits.
Abercrombie quickly moved to change its image from the Jeffries era. Shortly after he left, the brand declared it would stop using "sexualized marketing."
It reworked its marketing, removed the old moose logo from its clothes, decreased the use of Fierce fragrance in its dimly lit stores, and began offering larger sizes.
“Notwithstanding the terrible nature of the allegations, Mike Jeffries did build an incredible brand, and Fran and her team have done an outstanding job modernizing it,” said Marni Shapiro, an analyst at Retail Tracker.
Rebranding Post-Scandals
Retail analysts do not anticipate that Jeffries' arrest and the allegations, which emerged during his time at Abercrombie, will deter current customers from shopping at the brand.
“This is all about Abercrombie's past and not its present. There is enough distance between the Abercrombie of today and the brand of the past,” stated Neil Saunders, an analyst at GlobalData Retail, to CNN.
Other consumer companies have managed to separate their brand images from scandals involving former CEOs and founders, according to Shapiro.
Papa John's redesigned its logo, stores, and hired Shaquille O'Neal to distance itself from founder John Schnatter, who resigned from his role as chairman in 2018 after the use of the N-word on a conference call was revealed.
Following a massive recall of yoga pants, Lululemon founder Chip Wilson stated in 2013 that "some women’s bodies don’t work for the pants." The comments resulted in backlash, and Wilson resigned as chairman shortly after. Despite criticism for its lack of larger sizes, Lululemon has continued to thrive over the past decade.
CNN's Brynn Gingras, Kara Scannell, and John Towfighi contributed to this article.
After the rebranding efforts, Abercrombie's sales and stock significantly increased, demonstrating the success of distancing itself from its previous business strategy under Mike Jeffries.
In light of Jeffries' indictment, retail analysts believe that Abercrombie's current customers won't be deterred because of the significant distance the brand has created from its past.
