Abercrombie's Mike Jeffries Loses Chairman Job, Will Stay As CEO

(RTTNews) - Teen clothing retailer Abercrombie & Fitch Co. (ANF) has separated the roles of Chairman of the Board and Chief Executive Officer and has brought on three new directors. The company is looking to rebound from a rough 2013 that saw shares plummet on gruesome summer sales figures at Hollister and its flagship stores.

Michael S. Jeffries, who has served as Chairman of the Board since 1996, has been stripped of his role as chairman but will continue to serve as a director and as CEO.

Arthur C. Martinez, Terry Burman, and Charles R. Perrin have been appointed to the Board of Directors, which has been expanded to twelve people.

Martinez, former CEO and chairman of Sears, Roebuck and Co. and the former chairman of the Federal Reserve Bank of Chicago, will lead the board as Non-Executive Chairman.

Burman is the former CEO of Signet Jewelers Ltd, while Perrin led Avon Products and Duracell International.

CEO Jeffries said, "I have strongly supported the significant corporate governance enhancements the Company has made in the past few years, and I am thrilled by the announcements we are making today. Arthur Martinez brings extensive sector expertise, deep boardroom experience, and valuable perspectives to the new role of Non-Executive Chairman. I am confident that he is the right choice to lead the Board of Abercrombie & Fitch as we execute against our strategic plans and move in to the next phase of the Company's growth."

Shares of the U.S. mall fixture have steadied since falling sharply on poor sales figures last summer.

The company's once-hot Hollister brand saw same store-sales drop a whopping 13 percent during last year's pivotal second quarter. Analysts said teens were ditching Abercrombie and rivals American Eagle and Aeropostale for edgier clothes.

Earlier this month, however, the company was able to increase its full year 2014 non-GAAP EPS forecast to between $1.55 and $1.65 after the bell Thursday, from prior expectations of $1.40 to $1.50. The consensus estimate is for EPS of $1.47.

Wall Street is responding well to today's management shakeup. ANF shares are up 2 percent at $36.55 just after the opening bell on the New York Stock Exchange.