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Fashion / Current Events PopWrapped | Fashion

Abercrombie & Fitch Ditches Famous Logo As Sales Drop

Lazaros Balakos | PopWrapped Author

Lazaros Balakos

08/31/2014 12:57 pm
PopWrapped | Fashion
Abercrombie & Fitch Ditches Famous Logo As Sales Drop | Abercrombie & Fitch
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Abercrombie & Fitch is known for placing its well-known logo all over its clothes, but that habit seems to belong in the past. Even though it has been a long time that the company has used that logo as a trademark and it was enough for people to buy the products, they are now taking it off of their clothing, due to recent drops in sales.

The A&F brand alone seems unable to sell itself in the current market, with more and more teenagers choosing to spend their money elsewhere. In an effort to adapt to the new trends, efforts have been made to bring the style closer to individual style. Lauren Wolfenden, a senior advisory analyst at WGSN, a fashion trend consultancy, said:

 "Personal style, specifically with teens, is becoming less about fitting in and more about standing out. A&F has wised up to this by phasing out the cookie-cutter logo-ed product look and bringing in trendy pieces that can be worn in a multitude of different ways."

Abercrombie is not the only one to face weak sales though, since most of its competitors have all been suffering similar issues.

There is no denying that the market is becoming a different place nowadays, as a result of various factors. Teenagers are not regular visitors at malls anymore, as they do a lot of e-shopping, after extensive research on designs and prices. Moreover, they show preference to electric devices and gadgets over clothes when the time comes to spend their money.

Other than that, chains like H&M are gaining more and more popularity, thanks to not only launching trendy clothing, but also selling it much cheaper than all of the big brands.

However, A&F is prepared to make the required changes to stay a strong force in the market and progress has already been made, with proof found in its back-to-school business. The company is now shipping their clothing to the stores faster after the design development stage, while additions have also been made to its color palette; black, for instance, was used for the first time in a collection.

The absence of Abercrombie's logo is the most drastic change though, as merchandise that carries it has been reduced up to 50%, and that's only for starters.

Abercrombie & Fitch cut the costs down, so earnings rose to $12.9 million from last year's $11.3 million. Despite that, the company suffered a 5.8% drop in sales from the previous year, to $890.6 million.

While investors expected the company to do better, analysts claim that a comeback is still possible, especially since its main competitors keep on missing the point.

Will you miss A&F's well-known, logo-centered clothing or are you a fan of its fresh approach? Let us know in the comments below.

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