Controversial Abercrombie (ANF) CEO Back in Spotlight as Old Comments Surface
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Abercrombie & Fitch (NYSE: ANF) CEO Mike Jeffries has had some missteps, but with shares near 52-week high levels, should investors be concerned?
The NY Post highlighted Monday a quote from Jeffries in 2006 which read like this: "Candidly, we go after the cool kids...A lot of people don’t belong [in our clothes], and they can’t belong. Are we exclusionary? Absolutely." The quote was posted on the fashion blog Salon.com and he said it was taken out of context (though no elaboration was given).
Abercrombie doesn't sell women's clothing in XL or XXL.)
The Post noted that two-thirds of Americans are considered overweight and Abercrombie's refusal to sell to overweight customers might be more of a liability.
Will the quote impact share performance? The Post thinks not. The publication thinks that, in the world of branding, it is better to simply "stand for something" than to "stand for something good." Investors shouldn't underestimate the body-image problems of the average teenager, it concludes.
Though investing in Abercrombie isn't quite like something more controversial like Philip Morris (NYSE: PM), shares have performed well as markets have moved to new highs. If momentum in the stock can continue, investors will have little to worry about. Should a boycott happen, then a second looking might be worth it.
Shares are down about 0.4 percent Monday.
The NY Post highlighted Monday a quote from Jeffries in 2006 which read like this: "Candidly, we go after the cool kids...A lot of people don’t belong [in our clothes], and they can’t belong. Are we exclusionary? Absolutely." The quote was posted on the fashion blog Salon.com and he said it was taken out of context (though no elaboration was given).
Abercrombie doesn't sell women's clothing in XL or XXL.)
The Post noted that two-thirds of Americans are considered overweight and Abercrombie's refusal to sell to overweight customers might be more of a liability.
Will the quote impact share performance? The Post thinks not. The publication thinks that, in the world of branding, it is better to simply "stand for something" than to "stand for something good." Investors shouldn't underestimate the body-image problems of the average teenager, it concludes.
Though investing in Abercrombie isn't quite like something more controversial like Philip Morris (NYSE: PM), shares have performed well as markets have moved to new highs. If momentum in the stock can continue, investors will have little to worry about. Should a boycott happen, then a second looking might be worth it.
Shares are down about 0.4 percent Monday.
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