Abercrombie CEO Mike Jeffries Just Defied All His Haters
Business Insider
Abercrombie was quickly declining in value and seen as a takeover target. Jeffries is a notorious micromanager, even controlling what shoes models on the private jet can wear, and it was hard to imagine such a controlling CEO being flexible enough to make it in today's challenging market.
But today, Abercrombie reported results, and their sales, inventory and profits are better than anyone imagined. Shares are up nearly 30 percent on the news, a sign that investors are once again confident in Jeffries' leadership.
Last month, the CEO made headlines when it emerged that he made models on the private jet wear a spritz of Abercrombie cologne and make seating arrangements for his three dogs.
Many analysts say that the retailer has struggled because it hasn't adapted to the fast-fashion mentality of its young customers. While teen culture has changed immensely in 15 years, Abercrombie has not.
Recent quarters were so bad that analysts began speculating that Abercrombie might be a takeover target. If a private-equity firm were to acquire Abercrombie, it seemed unlikely that such a controlling CEO would be able to adapt to appease the new guys in charge.
But Jeffries responded to the downturn by managing expenses at Abercrombie, closing underperforming stores and cancelling construction of new ones.
Abercrombie's inventories are also down, meaning that teens are buying their clothes.
It looks like Jeffries finally has some vindication. Now that expenses are under control, the CEO can focus on innovating the brand.
DON'T MISS: The Most Expensive Shopping Areas In The World >
- As Ilya Sutskever announces OpenAI exit, here’s a quick recap of his involvement in Sam Altman's firing last year
- DHFL scam, simplified: Here’s all about the Dheeraj Wadhawan case — allegedly India’s biggest banking loan fraud ever
- India-UK trade pact: Work in progress to resolve pending issues
- 5 most colourful mountains in the world
- Vivo takes the top spot in India: Top smartphone brands in Q1 2024
- Nothing Phone (2a) blue edition launched
- 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