Reginal Thomas
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Abercrombie & Fitch Give CEO A New Contract


Abercrombie & Fitch shares are down today, after the retailer announced it was renewing their controversial CEO Micheal Jeffries' contract. Share have dropped more than 2% since the announcement. Earlier last week one of A&F investors, Glenn W. Welling head of Engaged Capital LLC, wrote a letter to the board "Given the Company's history of operational missteps, taken together with Mr. Jeffries' age and his increasingly controversial reputation, the Board must not let this opportunity pass." 
Jeffries has been criticized for his comments about wanting only "cool kids" to wear his brand and not offering larger sizes for women because he only wants slim people in their clothes. Though Jeffries is keeping his job, his new contract is more performance based, and the company has already begun a succession plan to replace the 69 year old in the new few years. 

Abercrombie's sales in the U.S. have fallen 18% in the third quarter and shares are down 26% from last year. I would say it was time to replace Jeffries now.