Abercrombie & Fitch gives up on teenagers
Abercrombie & Fitch
The brand didn't mention the word "teen" or "teenager" once during a recent earnings conference call with investors.
Instead, executives say the brand is working to attract a "broader target market."
Abercrombie's same-store sales fell 8% and total sales dropped 14%. The brand says it's still waiting to see more progress from its turnaround brand, which includes offering clothing that is less preppy and more fashionable.
The once-dominant teen retailer is choosing to market to an older audience for the first time in decades, Jonathan Ramsden, chief operating officer and chief financial officer, told Lindsey Rupp at Bloomberg News last year.
"It's part of wanting to separate the brands more, take Abercrombie to more of a premium, with Hollister as more fast-fashion," Ramsden told Bloomberg. "It's an opportunity to connect Abercrombie & Fitch with its heritage and move it up in demographic."
The retailer has also toned down its sexy advertisements.
Teenage consumers' mentalities are changing rapidly, according to Piper Jaffray's recent Taking Stock With Teens survey.
Researchers found that today's teens are increasingly spending on technology and food over clothing.
For the first time in history, teens are spending as much on food as they are on clothing, according to the analysts at Piper Jaffray. This is fueled by trendy coffee drinks at Starbucks, the top food retailer among the demographic.
Many teens are also more concerned with having a new iPhone than a name-brand t-shirt, according to the survey.
When they do buy trendy clothes, teens are value-conscious. They prefer fast-fashion companies like H&M and Forever 21 to the more expensive specialty stores.
Denim is also losing popularity to stretchy yoga pants from retailers like Lululemon and Nike, the analysts at Wunderlich write.
With these trends, it's no wonder Abercrombie is turning its focus away from teens.
NOW WATCH: It's official: Under Armour is on fire
- A centenarian who starts her day with gentle exercise and loves walks shares 5 longevity tips, including staying single
- A couple accidentally shipped their cat in an Amazon return package. It arrived safely 6 days later, hundreds of miles away.
- Colon cancer rates are rising in young people. If you have two symptoms you should get a colonoscopy, a GI oncologist says.
- Having an regional accent can be bad for your interviews, especially an Indian one: study
- Dirty laundry? Major clothing companies like Zara and H&M under scrutiny for allegedly fuelling deforestation in Brazil
- 5 Best places to visit near Darjeeling
- Climate change could become main driver of biodiversity decline by mid-century: Study
- RBI initiates transition plan: Small finance banks to ascend to universal banking status
- JNK India IPO allotment date
- JioCinema New Plans
- Realme Narzo 70 Launched
- Apple Let Loose event
- Elon Musk Apology
- RIL cash flows
- Charlie Munger
- Feedbank IPO allotment
- Tata IPO allotment
- Most generous retirement plans
- Broadcom lays off
- Cibil Score vs Cibil Report
- Birla and Bajaj in top Richest
- Nestle Sept 2023 report
- India Equity Market