Tags: abercrombie | removes | logo | brand | name

Abercrombie Removes Logo to Compete With 'Un-brands' Like H&M, Forever 21

By    |   Friday, 29 Aug 2014 01:15 PM

Abercrombie plans to remove its logo from its iconic clothing line amid declining sales and a customer base that's shifted toward un-branded apparel.

"In the spring season, we're looking to take the North American logo business to practically nothing," Chief Executive Mike Jeffries said on a quarterly conference call Thursday, The Wall Street Journal reported.

Urgent: Do You Approve Or Disapprove of President Obama's Job Performance? Vote Now in Urgent Poll

Quarterly sales dropped 6 percent through August 2 from last year, to $891 million. Profits has risen to nearly $13 million as the company cut costs but investors were looking for more.

Up until the mid-aughts, Abercrombie, American Eagle, and Aéropostale used to rule malls all over America, with young people flocking to snap up T-shirts, hoodies, and other logoed items as status symbols.

"A few years ago, all the girls wore their Abercrombie and Hollister T-shirts, but now my friends don't wear them as much," 20-year-old Micayla Lubka, a student from Wisconsin, told the Journal.

Nowadays, young people are "shopping instead at places like H&M, Zara, and Forever 21, which are adept at copying fashions from the runway and selling them cheaply," writes The New Yorker.

Forever 21, for example, sells jeans for less than $8. Struggling to keep up, Abercrombie has lowered its prices, sacrificing margin along the way. Analysts at Cowan & Co. report that the differential on dresses is especially dramatic: $58 for the average Abercrombie frock, $15 at H&M.

Thus, Abercrombie seeks to adopt some of the "fast fashion" practices of its new peers.

Steph Wissink, an analyst at Piper Jaffray specializing in teen trends, said that kids today are far more brand-conscious of their tech products (think Apple and Beats) than they are their clothing. They're also expressing themselves through social media, relieving fashion of some of its former duties of enabling self-expression.

"Ten years ago, I could walk into an auditorium of 200 kids, I could turn my back and tell them to switch seats and scramble," she said. Most of the time, she could still pick out which peer groups individual kids belonged to.

"Today, it’s next to impossible."

Urgent: Assess Your Heart Attack Risk in Minutes. Click Here.

© 2017 Newsmax. All rights reserved.

   
1Like our page
2Share
TheWire
Abercrombie plans to remove its logo from its iconic clothing line amid declining sales and a customer base that's shifted toward un-branded apparel.
abercrombie, removes, logo, brand, name
370
2014-15-29
Friday, 29 Aug 2014 01:15 PM
Newsmax Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
America's News Page
© Newsmax Media, Inc.
All Rights Reserved