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Abercrombie & Fitch Names New Brand Heads, but Shares Slump

Abercrombie & Fitch shares traded lower Tuesday after the teen retailer announced a series of changes for its namesake brand.
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  • Associated Press

NEW ALBANY, United States — Abercrombie & Fitch shares traded lower Tuesday after the teen retailer announced a series of changes for its namesake brand.

The company named general managers for the A&F men's, women's and abercrombie kids businesses and head designers for men's and women's apparel. It's the latest in a series of changes for the company, which is moving away from its sexualised image, shrinking the logo on its clothing, and trying to stock trendier merchandise to keep up with "fast fashion" chains that change their styles more often. The company named a new president for the Abercrombie & Fitch and abercrombie kids brands in October and company CEO Mike Jeffries resigned in December.

The company also runs the Hollister brand.

Abercrombie & Fitch Co. stock fell $1.20, or 6.3 percent, to $17.97. Shares of the New Albany, Ohio-based company reached a six-year low of $17.71 earlier in the session.

However Jefferies & Co. analyst Randall Konik said the company is making some good changes, and the latest hires and promotion will help bring those moves to fruition.

"We view this news positively, as it continues the trend of strengthening the bench, and provides further support for the positive changes that are already in the works at the brand," he said. Konik rates the shares "Buy" with a target price of $30.

Shares of Abercrombie & Fitch have fallen about 58 percent over the last 12 months.

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