Join our Waitlist for Expert Advice!

Abercrombie's Polarizing CEO Abruptly Retires Mike Jeffries' lengthy reign has not been without its fair share of controversies.

By Geoff Weiss

Opinions expressed by Entrepreneur contributors are their own.

After curbing its multi-sensory assault in store and offering more non-logoed merchandise in new sizes and colors, Abercrombie and Fitch is now resorting to even more drastic measures to reverse flagging sales.

CEO Mike Jeffries, who is credited with transforming the 122-year-old sporting goods retailer into a racy arbiter of youth culture, announced his retirement -- effective immediately -- this morning. As the company searches for a successor, a group of senior executives, including executive chairman Arthur Martinez and COO Jonathan Ramsden, will manage day-to-day operations, Abercrombie said.

Jeffries' reign at the company over the past two decades has not been without its fair share of controversies. In a Salon profile in 2006, the now 70-year-old said, "A lot of people don't belong [in our clothes], and they can't belong. Are we exclusionary? Absolutely."

But today, Abercrombie -- and its sister brand Hollister -- have all but lost their exclusive luster, as the teen market has been disrupted by fast fashion retailers like H&M and Forever 21, as well as a host of online outlets. The company reported a third quarter sales drop of 12 percent, which Jeffries called "disappointing in what remains a very challenging environment for young apparel."

Wall Street seems to be applauding the executive shakeup. The company's stock was up almost 7 percent as of 10:50 a.m. ET.

Related: The Scent in Abercrombie Stores Is Giving Shoppers Serious Anxiety

Geoff Weiss

Former Staff Writer

Geoff Weiss is a former staff writer at Entrepreneur.com.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Business News

You Have One Month Left to Buy a House, According to Barbara Corcoran. Here's Why.

"If you are planning on waiting a year and seeing where interest rates go, you are out of your mind," Corcoran said.

Business News

These 3 Side Hustles Make the Most Money While Working Fewer Hours, According to a New Survey

The survey also found that having a side hustle doubled as a path to becoming more employable.

Franchise

The McRib Is Back, But Only at Select McDonald's — Here's Where to Find It

This scarcity is nothing new. In 2022, McDonald's announced a "Farewell Tour" for the McRib, suggesting that it might be the last time customers could get their hands on it.

Side Hustle

I Made $14,000 in 1 Week With a Spontaneous Halloween Costume Side Hustle — Here's How

Sabba Keynejad was in art school when he started to refine his entrepreneurial skills.

Social Media

How To Start a Youtube Channel: Step-by-Step Guide

YouTube can be a valuable way to grow your audience. If you're ready to create content, read more about starting a business YouTube Channel.

Business News

This Is the Goal-Setting Method Shohei Ohtani Learned in High School That Helped Get Him to the World Series

The MLB superstar's success did not come as a surprise to him. He had a plan.