Abercrombie & Fitch Co. (ANF), Urban Outfitters, Inc. (URBN): Is It Time for This Retailer to Make a Change?

However, despite Abercrombie & Fitch Co. (NYSE:ANF)’s weakness, some might defend Jeffries’ position due to the overall weakness of the teen retail space, from the likes of American Eagle and Aeropostale. While this is true, it is the comments and the controversial PR from Jeffries that most likely have the hot seat warming up.

Most notably, Jeffries made the decision to not carry XL and XXL women’s clothes, perhaps not considering larger women to be “cool.” Jeffries went on to dig his grave deeper, saying the company hires “good-looking people” because they attract “other good-looking people, and we want to market to cool, good-looking people.”

Enough said.

Final thoughts

Perhaps the bigger question is whether or not new leadership can save this company. I already noted that competitors American Eagle and Aeropostale have also been weak, but then again competitor Urban Outfitters, Inc. (NASDAQ:URBN) continues to shine.

Last week, Urban Outfitters, Inc. (NASDAQ:URBN) announced earnings in which gross profit improved 169 basis points year over year and comparable sales exploded 5% for Urban and 38% for its brand Free People. I think it is definitely possible for Abercrombie to likewise see a turnaround, but until new management is found, I think Urban Outfitters, Inc. (NASDAQ:URBN) stands alone as the clear leader in the space, and I wouldn’t bet on Abercrombie or Jeffries’ shenanigans.

The article Is It Time for This Retailer to Make a Change? originally appeared on Fool.com and is written by Brian Nichols.

Fool contributor Brian Nichols has no position in any stocks mentioned. The Motley Fool recommends Urban Outfitters and Yahoo!.

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