Abercrombie's worst nightmare is back. But his customers have moved on

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CNN
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Abercrombie & Fitch has spent years trying to erase the memory of longtime former CEO Mike Jeffries and the associated sexualized marketing campaigns featuring shirtless male models he designed.

Since Jeffries left in 2014 after more than two decades as CEO, Abercrombie has left behind the perfume-soaked stores, models and logo sweatshirts that defined the brand during his tenure. The brand took these steps to appeal to customers who had turned away from Abercrombie.

“We are a positive, inclusive brand with a good sensibility, very different from what they have experienced in the past,” Fran Horowitz, now CEO of Abercrombie, said in 2016.

Today, Abercrombie stores are lighter than they used to be and clothing is looser. The brand has become known for its (logoless) basics, loungewear and jackets. Instead of trying to outfit high school students for class, Abercrombie is trying to outfit adults for everything from the gym to happy hour.

The strategy of breaking away from Jeffries worked. Since Jeffries stepped down as CEO, Abercrombie's sales have increased and the company's shares have risen more than 400%.

Jeffries' indictment Tuesday along with his romantic partner and an associate for allegedly running a sex trafficking ring while he ran Abercrombie shows how Jeffries' shadow still hangs over the brand he made a cult favorite of teenagers.

However, retail analysts say the indictment will not affect the Abercrombie brand because Abercrombie has managed to part ways with its former CEO. Older Abercrombie customers who remember the brand's sexualized marketing have accepted the Abercrombie rebrand, while a new generation of customers is too young to remember the old era.

Jeffries' role at Abercrombie and the brand's use of male models in advertising were at the center of the allegations.

The indictment alleges that Jeffries and his associates recruited men for “sex events” where the victims sometimes used Abercrombie products and performed sexual acts. Many of the victims were aspiring models and were led to believe that attending the parties would benefit their careers, prosecutors say. They were also told that failure to comply with certain requests to take certain actions would harm their careers.

“While Jeffries was the CEO of one of the most well-known clothing retailers in the world, he used his power, wealth and influence to sell men for his own sexual pleasure and that of his romantic partner,” said Breon Peace, U.S. Attorney for the Eastern District of New York, said at a news conference on Tuesday.

Abercrombie did not respond to CNN's request for comment. A lawyer for Jeffries said he would respond to the allegations “at the courthouse – not in the media.”

Abercrombie became a staple of teen wardrobes in the 1990s and 2000s under Jeffries. The sexualized advertising featuring shirtless young male models made the brand a preppy status symbol for high school students.

And it prided itself on being exclusionary, refusing to make size XL or XXL for years. (A documentary released on Netflix in 2022 documents the culture of racism and discrimination there.)

“We’re looking for the cool kids. We're looking for the attractive, all-American kid with a great attitude and lots of friends,” Jeffries said in 2006. “Are we exclusionary? Absolutely.”

But the brand alienated customers. Fast fashion stores like H&M sprung up to attract them during and after the 2008 recession. Sales were plummeting, and by the time Jeffries left the CEO post in 2014, the brand had settled lawsuits alleging racial and gender discrimination and harassment.

Abercrombie quickly tried to change its image from the Jeffries era. Shortly after his departure, Brand said they would stop “sexualized marketing.”

It revamped its marketing, removing the old moose logo from its clothing and reverting to the Fierce scent in its dimly lit stores. It has also expanded its size.

“Despite the horrific nature of the allegations, Mike Jeffries has actually built an incredible brand, and Fran and her team have done an outstanding job modernizing it,” said Marni Shapiro, analyst at Retail Tracker.

Rebranding after scandals

Retail analysts don't expect Jeffries' arrest and allegations while he was at Abercrombie to deter existing customers from shopping with the brand.

“This is about the Abercrombie of the past, not the present,” Neil Saunders, an analyst at GlobalData Retail, told CNN. “There is enough distance between the Abercrombie of today and the brand of yesterday.”

Other consumer goods companies have also successfully distanced their brand image from scandals involving former CEOs and founders, Shapiro said.

Papa John's redesigned its logo and stores and hired Shaq to break away from founder John Schnatter, who resigned from his role as chairman in 2018 after it was revealed that he had used the N-word on a conference call.

After a massive recall of yoga pants, Lululemon founder Chip Wilson said in 2013 that “some women's bodies don't work for the pants.” The comments sparked backlash and Wilson resigned as chairman shortly thereafter. Although Lululemon has been criticized for its lack of larger sizes, the brand has boomed over the last decade.

CNN's Brynn Gingras, Kara Scannell and John Towfighi contributed to this article.