Abercrombie & Fitch has seen a significant dip in sales in the first quarter of 2013, and some people are speculating it is at least in part due to comments made by CEO Mike Jeffries.
The company was recently forced to apologize after comments Jeffries made in a 2006 Salon interview resurfaced on the Internet.
In that interview Jeffries called the company “exclusionary” when asked about the sizes of clothes available to consumers. Abercrombie & Fitch has also received criticism for only offering clothing up to a size 10. He stated that products the company offers are targeted for “cool, good-looking people.”
If a company only wants to offer a certain type of product to a certain type of customer, should it really be forced to apologize? The same freedom of choice the company has in regards to the goods it creates extends to the consumer and how they choose to spend their money.
Abercrombie has blamed inventory shortages for a rough first quarter of sales. Sales at retail stores open for at least a year were down by 13%. Furthermore, as noted by the Daily News, profit forecast for the year has been cut by 20 cents to a range of $3.35 to $3.45 per share