CEO out of fashion at Abercrombie

Abercrombie & Fitch Co. has turned to a Sears veteran for leadership after longtime and occasionally divisive CEO Michael Jeffries abruptly retired.

Abercrombie announced it will be run by a newly created Office of the Chairman, which includes former Sears CEO and current non-executive chairman of Abercrombie; COO Jonathan Ramsden; Christos Angelides, who oversees the Abercrombie & Fitch division; and Fran Horowitz, who leads Hollister.

Martinez retired from Sears in 2000 after serving as chairman and CEO there for five years.

"It is impossible to overstate Mike Jeffries' extraordinary accomplishments in bulding Abercrombie & Fitch to the iconic status the brand now enjoys. From a standing start two decades ago, his creativity and imagination were the driving forces behind the company's growth and success. Going forward, we are confident in our talented senior leadership team and the steps we are taking to revitalize our brands and business," Martinez said. "We are also confident that our search will identify a new leader with the skills and expertise to enable Abercrombie & Fitch to capitalize fully on its growth opportunities and build shareholder value."

Jeffries became CEO in 1992. He is credited with turning the brand into a $4 billion teen retail powerhouse, one that was as famous for its pricey logo-branded apparel as it was for its sexy advertising and good-looking sales associates. Abercrombie stores, with their dimmed interiors and loud music, resembled a nightclub.

"It has been an honor to lead this extraordinarily talented group of people. I believe now is the right time for new leadership to take the Company forward in the next phase of its development," Jeffries said.

But recently Abercrombie has been in a tough spot, lowering its full-year profit forecast and reporting Q3 same-store sales falling 8% and overall sales sliding 12% over the last year. The retailer has been struggling to keep up with the shifting preferences of its target teen shoppers, experimenting with changes like removing its signature label from its clothes, lightening up stores, and changing up its merchandising strategy.

The company operates 834 stores in the United States and 166 stores across Canada, Europe, Asia, Australia and the Middle East.