Abercrombie’s worst nightmare is back. But its customers have moved on

New York (CNN) — Abercrombie & Fitch has spent years trying to scrub the memory of longtime former CEO Mike Jeffries and the associated sexualized marketing campaigns with shirtless male models that he crafted.

Since Jeffries exited as CEO in 2014 after more than two decades, Abercrombie ditched the perfume-drenched stores, models and logoed sweatshirts that defined the brand during his tenure. The brand made these moves to appeal to customers that had turned away from Abercrombie.

“We are a positive, inclusive brand, with a nice sensibility, very different from what they encountered in the past,” Fran Horowitz, now Abercrombie’s CEO, said in 2016.

Today, Abercrombie’s stores are lighter than they once were and its clothes are looser. The brand has become known for its (logo-less) basics, loungewear and jackets. Instead of trying to dress high schoolers for class, Abercrombie tries to outfit adults for everything from the gym to happy hour.

The strategy to move away from Jeffries has worked. Abercrombie’s sales have grown and its stock has increased more than 400% since Jeffries stepped down as CEO.

Abercrombie central to indictment

Jeffries’ indictment Tuesday, along with his romantic partner and an associate for allegedly operating a sex trafficking ring while he led Abercrombie, shows how Jeffries’ shadow still hangs over the brand he built into a cult favorite of teens.

But retail analysts say that Abercrombie’s brand won’t be hurt by the indictment because of how much separation Abercrombie has been able to create from its former CEO. Older Abercrombie customers who remember the brand’s sexualized marketing have accepted Abercrombie’s rebrand, while a new generation of customers are too young to remember the old era.

Jeffries’ role at Abercrombie and the brand’s use of male models in advertising was central to the allegations.

The indictment alleges that Jeffries and his associates recruited men for “sex events,” sometimes incorporating Abercrombie products, in which the victims performed sex 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 not complying with certain requests for certain acts would harm their careers.

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

Abercrombie did not respond to CNN’s request for comment. An attorney for Jeffries said he will respond to the allegations “in the courthouse – not the media.”

Abercrombie’s shift

Abercrombie became a staple of teen wardrobes during the 1990s and 2000s under Jeffries. Its sexualized advertising featuring young, shirtless male models turned the brand into a preppy status symbol for high schoolers.

And it was proudly exclusionary, refusing to make size XL or XXL for years. (A documentary released in 2022 on Netflix documents its culture of racism and discrimination.)

“We go after the cool kids. We go after the attractive all-American kid with a great attitude and a lot of friends,” Jeffries said in 2006. “Are we exclusionary? Absolutely.”

But the brand alienated customers. Fast-fashion stores like H&M emerged to win them over during and after the 2008 recession. Its sales slumped and, by the time Jeffries left as CEO in 2014, the brand had settled race and sex discrimination and harassment lawsuits.

Abercrombie quickly tried to change its image from Jeffries era. Soon after he left, brand said it would stop “sexualized marketing.”

It overhauled its marketing, stripped the old moose logo from its clothes and pulled back on the Fierce fragrance in its dimly lit stores. It also expanded its sizes.

“Notwithstanding the terrible nature of the allegations, Mike Jeffries did build an incredible brand, and Fran and her team have done an outstanding job modernizing it,” said Marni Shapiro, an analyst at Retail Tracker.

Rebranding after scandals

Retail analysts do not expect Jeffries’ arrest and the allegations while he was at Abercrombie to deter current customers from shopping at the brand.

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

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

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

Following 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 after. Although Lululemon has been criticized for its lack of larger sizes, the brand has boomed over the past decade.

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

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