Abercrombie & Fitch sales drop as brand faces identity crisis

Abercrombie & Fitch keeps trying on new personalities, hoping one will finally fit.

After shedding last year its overtly sexualized image, where bare-chested male models had long strutted around its stores, the teen apparel company, which also owns the Hollister brand, is emphasizing “confidence” and “character” in a new branding strategy.

“Image is less important than character,” said chief merchandising officer Fran Horowitz during an earnings call with analysts on Tuesday, adding “It’s more important to feel confident than to appear confident.”

The rebrand comes as the Ohio-based retailer reported disappointing second-quarter results — net sales were down 4 percent to $783 million and same-store sales were down 4 percent — while the company said it expects “the second half of the year to be challenging.” The company’s stock tanked by 20 percent to $18.30. It also said it would close 60 of 744 stores in the US.

While the entire teen apparel sector has been struggling, with notable bankruptcy filings over the past year, including American Apparel, Aeropostale, Quiksilver and Pacific Sunwear, Abercrombie’s answer is to dump teenagers — at least at its Abercrombie stores.

“Our goal is to be the brand for today’s 20-something shoppers,” said Horowitz. The Hollister brand will continue to market to teens, adopting a so-called “carefree California attitude” brand campaign.

But not everyone is buying the idea.

“We are highly skeptical,” said Wunderlich analyst Eric Beder. “I don’t see how a 25-year-old starting out with their first apartment goes back to a brand that they left a few years ago.”

“The company has decided that the old Abercrombie was sexist and sex-driven is no longer applicable,” Beder said.