Fran Horowitz, the CEO of Abercrombie & Fitch (A&F), has publicly expressed her shock and dismay over the serious allegations of sex trafficking leveled against her predecessor, Mike Jeffries. In an interview with Sky News, Horowitz emphasized that the company has thoroughly examined its internal culture and implemented transformative changes since the scandal came to light. She stated, “We’re appalled and disgusted at the allegations. What we do at Abercrombie is continue to do what we set out to do, which is set new values for the company… and keep our associates focused on that.” Horowitz’s comments come as A&F continues to rebuild its brand identity, moving away from its once iconic but now controversial image tied to Jeffries’ leadership.
Horowitz, who has been at the helm since Jeffries’ departure, highlighted the company’s efforts to redefine its values and culture. A&F, once known for its trendy jeans and T-shirts, has recently opened a new flagship store on London’s Oxford Street, signaling its commitment to a fresh and broader approach to retail. Despite the current economic challenges and weak consumer confidence, Horowitz expressed optimism about the UK market, calling it A&F’s second-largest business and noting the “terrific growth” the company has experienced there. She emphasized that customers continue to choose A&F despite tough economic times, underscoring her confidence in the brand’s direction.
The allegations against Mike Jeffries, who led A&F from 1992 to 2014, have cast a shadow over the company’s reputation. Jeffries, now 80 years old, has pleaded not guilty to charges of sex trafficking and interstate prostitution. The indictment, unveiled in October 2023, alleges that 15 men were coerced into participating in drug-fueled sex parties between 2008 and 2015, with events taking place in locations such as New York and London. A&F launched its own investigation into these claims in 2023, shortly before the FBI began its inquiry. Jeffries’ legal team has since raised questions about his fitness to stand trial, citing his diagnosis with dementia.
In the wake of these allegations, Horowitz has been steadfast in her focus on leading A&F’s recovery and evolution. Under her leadership, the company has been working to transition into a more inclusive and modern “lifestyle brand,” particularly targeting women of all ages. This shift is part of a broader turnaround plan aimed at enhancing profitability and adapting to changing consumer preferences. Horowitz expressed pride in the progress made, stating, “I could not be prouder of what the retailer has become” during her tenure. However, the road to recovery has not been without its challenges. A&F’s share price has declined by 27% over the past year, reflecting investor concerns about the company’s ability to sustain its momentum.
Despite these challenges, Horowitz remains confident in A&F’s growth trajectory. Following the core Christmas sales season, the company announced that it expects to achieve net sales growth of around 15% for the full year 2024, significantly outperforming initial projections. This upbeat outlook suggests that A&F’s efforts to reinvent itself and reconnect with its customer base are bearing fruit. Horowitz’s leadership has been instrumental in steering the company through this critical phase, emphasizing a commitment to ethical practices, inclusivity, and a customer-centric approach.
As A&F prepares to release its full-year results for 2024, all eyes will be on whether the company can continue its upward trajectory. Horowitz’s interview underscored her determination to move the brand forward, emphasizing the importance of maintaining focus on the company’s new values and ensuring that all associates remain aligned with this vision. While the legacy of Mike Jeffries’ tenure continues to cast a shadow, Horowitz is clearly intent on defining a new chapter for A&F, one that prioritizes integrity, inclusivity, and a fresh identity that resonates with modern consumers.
In summary, Fran Horowitz’s leadership at Abercrombie & Fitch has been marked by a concerted effort to distance the company from the controversies of its past while charting a course toward a more sustainable and inclusive future. Despite the legal and reputational challenges posed by the allegations against Mike Jeffries, Horowitz remains optimistic about A&F’s ability to evolve and thrive. With a renewed focus on ethical practices, a broader product offering, and a strong performance in key markets like the UK, A&F is working diligently to redefine its brand and reclaim its position as a leader in the retail industry.
