Abercrombie & Fitch is now experiencing problems as the company's sales are declining. As a result, the stock prices of the company is also falling.
The popular company which mainly caters teenagers and customers in their early twenties is now struggling to market their products as the fashion trend is constantly changing. The technological advancement particularly the rise of smartphones and high end tech devices have reduced the sales of the company.
Unlike before, the target customers of Abercrombie & Fitch are now more focused on their gadgets than on how they look and what they wear. The trendy and youthful apparels of the company are no longer as hit as the old days.
Recent reports reveal that the company's stock price target is $24.59. The lowest possible price is $17 while the highest target price is $31.
Meanwhile, Christos Angelides, the executive of Abercrombie & Fitch has been fired. As a result, one potential contender for the vacant chief executive officer position of the company has been eliminated. The president of the Hollister brand Fran Horowitz and Chief Operating Officer Jonathan Ramsden are among the individuals being considered to replace the former CEO Mike Jeffries who resigned from the said office.
Jeffries stepped down after working as the CEO of the company for almost 16 years vacating the position for almost a year now. The adjustment in the leadership of Abercrombie & Fitch may have also affected the company's sales performance. Still, the upscale American retailer is doing its best to win back its customers.
Besides Abercrombie & Fitch, its competitor Aeropostale is also facing the same problem. Likewise, the company is facing sales decline. To combat the said crisis, the apparel company has tried lowering their prices and offering discounts to their customers. Sadly, both companies never reached their target sales.
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