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Abercrombie & Fitch Bleeding? Former CEO Mike Jeffries’ Corporate Jet ‘On Sale’

| Mar 13, 2015 01:36 PM EDT

Abercrombie & Fitch

The condition of Abercrombie & Fitch is so bad that during a conference call on Wednesday, the company CFO said that it is looking to sell the corporate jet of its former CEO Mike Jeffries. It is bleeding.

A&F is no more a popular brand among teens, and the generations that dwell on Facebook and use Apple iPhone are choosing "fast fashion" items from the likes of Forever 21, Zara, H&M, and Uniqlo. The A&F logo doesn't excite the teens any more.

That is precisely why no one was surprised when the company said that its same-store sales in the fourth quarter fell 10%. The ANF stock is down by 30% this year and is already trading at its worst since early 2009.

Meanwhile, CNN Money wrote that after CEO Jeffries stepped down abruptly in last December, Wunderlich Securities analyst Eric Beder wrote in a report that Abercrombie & Fitch has "a broken business model."

Beder added that "the teen segment will remain in flux and decline for the foreseeable future until the group reaches some sort of equilibrium."

That decline was seen clearly in the fourth quarter earnings report. According to Bidness Etc., the company reported quarterly earnings of $1.15 a share, which resembled the analysts' estimate but revenue for the quarter fell short of estimate by $50 million.

Notably, the ex-CEO of the company has remained more in fluffy news than his actual management capabilities. An ex-pilot has mentioned in a lawsuit that Jeffries had an unusual aircraft manual that had the dress requirements for the male models and a boarding process for his dogs.

Jeffries was also criticized for the scantily-clad models used in the ads of the company. But, the company was in its heydays and Jeffries was the man who enjoyed that sunshine the most.

The story is completely different now. The sunshine Jeffries used to enjoy has left the company as he himself did.

The company is looking for a new CEO. But till now, Abercrombie & Fitch is doing nothing exemplary without Jeffries.

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