Latest news with #MikeJeffries
Daily Mail
3 days ago
- Business
- Daily Mail
Symbol of 2000s cool roars back after sexism scandal nearly sank it... and fashion brand's stock prices soars
Just three years ago, Abercrombie & Fitch looked like a dying relic of early-2000s mall culture. Customers had fled. The stock was tanking. And the brand was under fire after a brutal Netflix documentary exposed its exclusionary hiring practices — favoring mostly white, thin employees to peddle a hyper-sexualized image to teens and college kids. Now, Abercrombie is staging one of the most surprising comebacks in retail. Its stock has surged over 400 percent in five years — outperforming even some of tech's biggest names. On Wednesday alone, shares jumped 32 percent after the company posted blowout earnings and forecast strong sales for the rest of 2025. The company credited its revival to trend-savvy updates like printed jeans, dresses, and vintage-inspired denim that are pulling in a new generation of shoppers. Hollister, its younger-skewing sub-brand, in particular is grabbing new customers. It saw same-store sales surge 23 percent year-over-year — with demand booming for fleece, skirts, and retro tees. CEO Fran Horowitz said stores are seeing a surge in customers and pledged to ramp up marketing during the crucial summer season. The transformation began when Fran Horowitz took over as CEO in 2017, steering the brand away from its Mike Jeffries-era playbook of shirtless models and exclusivity. Under her watch, Abercrombie ditched its toxic image, embraced inclusivity, and made fashion-forward tweaks like vintage denim, printed dresses, and gender-neutral basics. The turnaround is more than skin deep. In its latest quarter, Abercrombie posted $1 billion in sales — a 22 percent jump — and crushed Wall Street expectations on earnings. Compare that to 2014, when Jeffries resigned after 11 straight quarters of shrinking sales, and the brand was hit with a $40 million discrimination settlement. A 2022 Netflix doc, White Hot: The Rise & Fall of Abercrombie & Fitch, cataloged it all — the racist t-shirts, the 'look policy,' the refusal to carry XL sizes, and Jeffries' infamous line: 'Are we exclusionary? Absolutely.' Horowitz has been behind Abercrombie & Fitch's strongest profits in its 133-year history. In the early 1990s and 2000s, it ran ad campaigns chock full of sex appeal primarily featuring attractive and in-shape white models. In some of the ads, the models were practically wearing nothing at all. Their ads also had incredible star power, featuring Taylor Swift, Karlie Kloss and Jennifer Lawrence early on in their careers. In the early 1990s and 2000s, Abercrombie & Fitch ran ad campaigns chock full of sex appeal primarily featuring attractive and in-shape white models In some of the ads, such as this one promoting boxers, the models wore practically nothing at all. Jennifer Lawrence remembered her 2006 shoot in an interview: 'They wanted natural pictures, so they made us play football on the beach. The other models played football in a pretty way, but not me. My face was bright red, and I was sweaty with flaring nostrils' A model is pictured in a recent Abercrombie & Fitch summer promotion on the company website Mike Jeffries, former chairman and CEO of Abercrombie & Fitch, was known for making brash statements some found offensive Today, Abercrombie's website features models of all races and sizes. Its favorability among millennials hit a record high in 2024, according to Morning Consult, and Gen Z now sees it as 'hip' and 'stylish,' per QuestBrand data. That's a far cry from 2002, when the company proudly sold a line of T-shirts with Asian stereotypes and caricatures. One of the offending shirts featured the slogan 'Wong Brothers Laundry Service — Two Wongs Can Make It White' with two caricatures of Chinese men. The brand's controversies weren't limited to the clothes themselves. Their stores, just as much as their ads, were committed to the idea that sex sells. That meant rejecting people applying as in-store models who didn't fit a certain 'look,' which allegedly included minorities. Subsequently, nine people of color filed a class-action suit against Abercrombie & Fitch for alleged discrimination against African Americans, Latinos, and Asian Americans. It was settled for $40 million in November 2004.
Yahoo
29-04-2025
- Business
- Yahoo
A&F CEO Fran Horowitz Gets Compensation Boost
Fran Horowitz, chief executive officer of Abercrombie & Fitch Co., who has orchestrated one of the retail industry's strongest turnarounds, has been getting nicely compensated for her efforts. Last year, Horowitz' total compensation package totaled $17 million, including $1.4 million in salary, $5.3 million in incentive pay and $10.3 million in stock awards, which tie the CEO's pay to the gains seen by other shareholders. That was significantly more compensation than the year before when the CEO's total compensation package came to $15 million, including $1.4 million in salary, $4.8 million in incentive pay and $8.9 million in stock awards. More from WWD Ex-Abercrombie & Fitch CEO Mike Jeffries Has Signs of Dementia and Can't Stand Trial, Lawyers Say Ex-Abercrombie & Fitch CEO Mike Jeffries Faces New Allegations Abercrombie & Fitch Co. Posts Strong Q4 and 2024 but Investors Want More in 2025 The New Albany, Ohio-based youth specialty retailer generated $4.95 billion in sales last year, up 16 percent from 2023, driven by comparable sales of 17 percent with double-digit comparable sales growth across regions and brands. By division, Abercrombie brands delivered net sales growth of 16 percent on comparable sales of 15 percent, with Hollister brands growing net sales 15 percent on comparable sales of 19 percent. Operating income rose 15 percent to $741 million. In terms of sales and operating income, 2024 was the best in the history of the company. Much of the company's success has stemmed from being better at chasing orders for hot-selling items, downsizing and remodeling stores for greater efficiency and productivity, to be more efficient, having a strong presence on social media, capturing more customers each year, providing appealing, well-designed product at reasonable prices and being more inclusive in its imagery and marketing. Horowitz has served as CEO of the company since February 2017. Earlier, she was president and chief merchandising officer for all brands of the company and before that served as Hollister's brand president. Other executives have also been well compensated. Scott D. Lipesky, executive vice president and chief operating officer, received $5.3 million in total compensation, including $821,154 in salary, $2.7 million in stock awards, and $1.7 million in non-equity incentive plan compensation. In 2023, Lipesky's total compensation came to $4.7 million. Samir Desai, executive vice president and chief digital and technology officer, last year had a total compensation package valued at $4.1 million, including $721,154 in salary, $1.9 million in stock awards, and $1.4 million in non-equity incentive plan compensation. In 2023, his total compensation came to $4.35 million. Best of WWD Macy's Is Closing 66 Stores in 2025 — Here's the List, Live Updates Inside the Demise of Lord & Taylor COVID-19 Spikes Elevate Retail Concerns Sign in to access your portfolio
Sky News
11-04-2025
- Sky News
Ex-Abercrombie & Fitch chief executive Mike Jeffries 'unfit to stand trial due to dementia', prosecutors and defence team say
Abercrombie & Fitch's former chief executive is not fit to stand trial on sex trafficking charges as he is suffering from dementia, both prosecutors and his lawyers have said. Mike Jeffries has Alzheimer's disease, Lewy body dementia and the "residual effects of a traumatic brain injury", his defence attorneys wrote in a letter filed at a federal court in Central Islip, New York. The 80-year-old needs around-the-clock care, they added, citing evaluations by medical professionals. Prosecutors and defence lawyers are calling for Jeffries to be placed in the custody of the federal bureau of prisons for up to four months. They say he should be admitted to hospital to have treatment that could allow his criminal case to proceed. The business tycoon, who led fashion retailer A&F from 1992 to 2014, pleaded not guilty to federal sex trafficking and interstate prostitution charges in October, and was released on a $10m (£7.65m) bond. A total of 15 men allege they were induced by "force, fraud and coercion" to engage in drug-fuelled sex parties. Prosecutors have accused Jeffries, his partner Matthew Smith, and the couple's alleged "recruiter" James Jacobson, of luring men to parties in New York City, the Hamptons and other locations, by dangling the prospect of modelling for A&F advertisements. Smith and Jacobson have also pleaded not guilty to the charges against them. 'Progressive and incurable' In their latest letter on Jeffries' health, his defence lawyers said at least four medical professionals had concluded his cognitive issues are "progressive and incurable", and that he will not "regain his competency and cannot be restored to competency in the future". These issues "significantly impair" his ability to understand the charges against him, they wrote. "The progressive nature of his neurocognitive disorder ensures continued decline over time, further diminishing his already limited functional capacity," said Dr Alexander Bardey, a forensic psychiatrist, and Dr Cheryl Paradis, a forensic psychologist, following evaluations made in December. "It is, therefore, our professional opinion, within a reasonable degree of psychological and psychiatric certainty, that Mr Jeffries is not competent to proceed in the current case and cannot be restored to competency in the future." Jeffries left A&F in 2014 after leading the company for more than two decades, taking the retailer from a hunting and outdoor goods store founded in 1892 to a fixture of early 2000s fashion.
Yahoo
11-04-2025
- Yahoo
Ex-Abercrombie & Fitch chief executive Mike Jeffries 'unfit to stand trial due to dementia', prosecutors and defence team say
Abercrombie & Fitch's former chief executive is not fit to stand trial on sex trafficking charges as he is suffering from dementia, both prosecutors and his lawyers have said. Mike Jeffries has Alzheimer's disease, Lewy body dementia and the "residual effects of a traumatic brain injury", his defence attorneys wrote in a letter filed at a federal court in Central Islip, New York. The 80-year-old needs around-the-clock care, they added, citing evaluations by medical professionals. Prosecutors and defence lawyers are calling for Jeffries to be placed in the custody of the federal bureau of prisons for up to four months. They say he should be admitted to hospital to have treatment that could allow his criminal case to proceed. The business tycoon, who led fashion retailer A&F from 1992 to 2014, pleaded not guilty to federal sex trafficking and interstate prostitution charges in October, and was released on a $10m (£7.65m) bond. A total of 15 men allege they were induced by "force, fraud and coercion" to engage in drug-fuelled sex parties. Prosecutors have accused Jeffries, his partner Matthew Smith, and the couple's alleged "recruiter" James Jacobson, of luring men to parties in New York City, the Hamptons and other locations, by dangling the prospect of modelling for A&F advertisements. Smith and Jacobson have also pleaded not guilty to the charges against them. 'Progressive and incurable' In their latest letter on Jeffries' health, his defence lawyers said at least four medical professionals had concluded his cognitive issues are "progressive and incurable", and that he will not "regain his competency and cannot be restored to competency in the future". These issues "significantly impair" his ability to understand the charges against him, they wrote. Read more from Sky News: "The progressive nature of his neurocognitive disorder ensures continued decline over time, further diminishing his already limited functional capacity," said Dr Alexander Bardey, a forensic psychiatrist, and Dr Cheryl Paradis, a forensic psychologist, following evaluations made in December. "It is, therefore, our professional opinion, within a reasonable degree of psychological and psychiatric certainty, that Mr Jeffries is not competent to proceed in the current case and cannot be restored to competency in the future." Jeffries left A&F in 2014 after leading the company for more than two decades, taking the retailer from a hunting and outdoor goods store founded in 1892 to a fixture of early 2000s fashion. His lawyers did not immediately respond to requests by the Associated Press news agency for comment. The US attorney's office for the eastern district of New York declined to comment.
Yahoo
21-03-2025
- Yahoo
Ex-Abercrombie boss now facing abuse claims from 40 men
More than 40 men have now come forward accusing the former chief executive of Abercrombie & Fitch (A&F) of rape, sexual assault or drugging, lawyers have told the BBC. Mike Jeffries, who was charged with sex trafficking in October, is facing multiple civil lawsuits alleging he assaulted men under the guise of modelling opportunities with the fashion brand. The latest claims stretch back to the 1990s, when Mr Jeffries first started working at A&F and the alleged victims now include company employees as well as former models, the lawyers said. Mr Jeffries has denied all the allegations previously made against him. A&F is also being sued for negligence with the lawsuits claiming that it knowingly facilitated the "heinous sexual crimes" of Mr Jeffries and his British life partner, Matthew Smith. The company - which also owns the Hollister brand - did not respond to requests for comment but has previously said it was "appalled and disgusted" by Mr Jeffries' alleged behaviour. In the latest allegations, some men say they were already A&F employees when they were sexual assaulted, raising questions about what steps the company took to protect staff and hold Mr Jeffries accountable while he was chief executive and chairman between 1992 and 2014. Now 80, Mr Jeffries is under house arrest after pleading not guilty to charges of running an international sex trafficking and prostitution business along with his partner Mr Smith, 61, and their middleman, James Jacobson, 72. Their arrests followed a BBC podcast and documentary in 2023 that revealed they were behind a highly organised operation scouting young men for sex across the US, Europe and North Africa. They face a maximum of life in prison if convicted. Brad Edwards, a civil trial lawyer, has told the BBC he is now representing 26 alleged victims in a lawsuit seeking class action status - where one or more people sue on behalf of a wider group. "There is strength in numbers, so more men came forward after the arrests," Mr Edwards said, adding that many were co-operating with the authorities, and claiming it is likely more than 100 men could be victims overall. Attorney Jared Scotto has told the BBC he is also representing more than a dozen men planning to take legal action, including some who say they were A&F employees. He said the claims date back to the autumn of 1992, the year that Mike Jeffries joined the company. "A lot of men are coming forward to ask questions and better understand what happened to them," said Mr Scotto. "Now they know it's not just them affected; it was part of a larger nefarious scheme." Separate to the group civil action, two lawsuits have recently been filed in New York by men alleging they were raped by Mr Jeffries after being falsely promised modelling opportunities. The first of these lawsuits alleges two men, Brandon Steele and Joseph Sterling, were assaulted on multiple occasions after being pressured to take illegal narcotics and forced to endure penis injections. These happened at "Abercrombie-themed" events where they were given A&F clothing to wear, the lawsuit says. Both men, who were in their late teens and 20s at the time, say they were initially approached by an A&F employee or representative about possible modelling work in 2010 and 2011, according to the court papers and their attorney. They each then met James Jacobson, who also sexually abused them, they add. Abercrombie & Fitch ex-CEO accused of exploiting men for sex How my investigation led to sex trafficking charges against ex-Abercrombie boss 'I tried to say no repeatedly': More men accuse ex-Abercrombie boss over sex events "Coercive sex is not consensual sex," said their attorney Robert Georges, who told the BBC that Mr Sterling had been taken to France, Italy, St Barts and onboard an ocean liner sailing from Hong Kong to Australia. "The power imbalance was extreme, and Mr Jeffries and Mr Smith used it shamelessly while Abercrombie & Fitch ignored the obvious for the sake of corporate profits." In the second lawsuit, two former models say they were assaulted by Mr Jeffries during a casting call at the Setai Hotel in Miami in 2011, while auditioning to be pictured on A&F's bags. One of the models alleges that Mr Jeffries sexually assaulted him after taking his pictures, telling him that "Abercrombie models get special treatment". The other, who was represented by Wilhelmina Models, a top modelling agency, claims Mr Jeffries' assaulted him after he and his partner Matthew Smith "relentlessly" questioned him about his sexuality and expressed an interest in straight men. Three weeks later, the men say they were contacted by James Jacobson with an offer to fly to New York to visit Mr Jeffries' home in the Hamptons to finalise the A&F casting. According to their lawsuit, the men allege Mr Jeffries subsequently raped them. One says this occurred after Mr Jeffries asked if he would have sex with a man in exchange for pay, gifts, or other favours. "No, I'm straight and have a girlfriend," he said, according to his lawsuit. He says he was then dismissed but Mr Jeffries later accosted him in a bathroom. In his lawsuit, he says he then grappled with Mr Jeffries and yelled at him to stop. He says when he finally did, Mr Jeffries asked: "Do you want this campaign or not?" The man says he rejected the offer of an A&F campaign deal and $6,000 (£4,600) to have sex with him and Mr Smith. He then tried to run out of the room, but Mr Jeffries grabbed him by the waist and raped him, the lawsuit claims. A handler for Mr Jeffries then refused to arrange for him to return to New York without signing a non-disclosure agreement until he threatened to call the police, it adds. Eric M Baum and Adriana Alcalde, attorneys for the two men, said it was often difficult for male survivors of sexual abuse, such as their clients, to come forward. "Survivors may struggle for years to process what happened to them. Seeing others share their stories can reduce feelings of shame and embarrassment, serving as a catalyst for seeking justice," they said. US prosecutors have said that there are currently 15 victims in the criminal case against Mr Jeffries, but the BBC understands that they are continuing to interview potential witnesses, so this number may grow. Earlier this month, a court ordered that A&F must pay Mr Jeffries' legal fees - a bill likely to run into millions - in the criminal case as well as in all the civil lawsuits. Mr Jeffries, Mr Smith and Mr Jacobson did not respond to the BBC's latest requests for comment. Mr Jacobson - the middleman - has pleaded not guilty to the criminal charges and has previously said in a statement through his lawyer that he took offence at the suggestion of "any coercive, deceptive or forceful behaviour on my part" and had "no knowledge of any such conduct by others". Mr Jeffries and Mr Smith have also pleaded not guilty to the criminal charges and, in response to the civil case, have previously said they "vehemently deny" the allegations. A&F also did not respond to requests from comment, though it has previously said that it had no knowledge of alleged sexual misconduct or sex trafficking and "up until the moment that the BBC's reporting was released in October 2023, there was nothing public about the allegations against Jeffries". It said that new leadership had since transformed the company, and it has "zero tolerance for abuse, harassment or discrimination of any kind". Following the BBC's reporting, the retailer opened an independent investigation and suspended $1m annual retirement payments to Mr Jeffries, which he was receiving on top of his pension.
