The boss of Abercrombie & Fitch (A&F) has expressed her dismay at the sex trafficking allegations against her predecessor, Mike Jeffries. Fran Horrowitz, who has been at the helm of the US-based company since Jeffries’ departure, stated in an interview with Sky News that A&F has undergone a cultural transformation in response to the scandal.
She emphasized that the company is focused on setting new values and keeping its associates aligned with those values. Horrowitz’s comments came as A&F launched a new flagship store on London’s Oxford Street. Despite challenges in the current economic climate, she remains optimistic about the brand’s offerings and the UK economy.
Regarding the investigation into Jeffries’ alleged involvement in sex trafficking, A&F initiated its own inquiry in 2023, preceding an FBI investigation. Jeffries, who led A&F from 1992 to 2014, has denied the charges brought against him. The indictment revealed that 15 men were coerced into participating in drug-fueled sex parties through force, fraud, and coercion between 2008 and 2015 in various locations worldwide.
Horrowitz affirmed her commitment to leading the brand’s resurgence and its evolution into a lifestyle brand catering to women of all ages. A&F is gearing up for its full-year results in 2024, with expectations of a 15% growth in net sales and a successful turnaround plan to enhance profitability.
Despite these positive developments, A&F’s share price has experienced a 27% decline this year, prompting investor concerns about sustaining momentum. Horrowitz remains confident in the company’s UK operations, citing significant growth in the region despite economic challenges.
The UK stands as A&F’s second-largest market, with a strong customer base that continues to choose the brand. Horrowitz’s leadership and strategic direction have been instrumental in navigating the company through turbulent times and positioning it for future success.
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