Abercrombie & Fitch CEO Mike Jeffries has officially retired from his position-his resignation comes as the company announces major financial troubles.
"I believe now is the right time for new leadership to take the company forward in the next phase of its development," Jeffries said in a statement, according to ABC News.
Although many analysts believe the move was made in order to compete with companies like Aeropostale, Forever 21 and H&M, as the company's stock and sales began declining several months ago, others have a more positive view of the change in leadership. Investors cheered the news of his resignation, the Wall Street Journal writes, citing the more than six percent stock increase within the first minutes of trading on Tuesday.
"[F]or Mr. Jeffries to retire during the Holiday period is surprising, and speaks, we believe, to continued weakness at the company and the overall teen space," Wunderlich Securities analyst Eric Beder said, according to the site.
Jeffries was especially known for his controversial remarks and business strategies-in the past, he has openly acknowledged that the company seeks to target "good-looking" people and produce clothing that reflects that.
"We want to market to cool, good-looking people. We don't market to anyone other than that," Jeffries said during a 2006 interview with Salon.
Nonexecutive Chairman Arthur Martinez is expected to become executive chairman of the organization following Jeffries' leave. The company has created Office of the Chairman positions, of which Martinez and several others will be included.
