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Too much sex hurts Abercrombie & Fitch (ANF)

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Abercrombie & Fitch (NYSE: ANF) apparently faces some major image issues.

According to a September ChangeWave survey of more than 4,000 consumers, Abercrombie was the store they said they're least likely to shop at in the future.

Consumers primarily objected to the company's risqué self-portrayal. One respondent took them to task for "immoral advertising and the message it sends to teens."

Other disaffected responses include:

  • "Seriously disagree with their philosophy."
  • "Overly suggestive catalog."
  • "Don't like their advertising scheme."
  • "Moral values."
  • "I don't like the image they project."

Compounding the image issue is the huge pullback in consumer spending and the migration of consumers from mall stores to discounter retailers.

Survey respondents pointed to Costco (NASDAQ: COST), Wal-Mart (NYSE: WMT) and Sam's Club as the top retailers they'll be shopping at this holiday season.

On the other hand, traditional retailers such as Bed Bath & Beyond (NASDAQ: BBBY), Sears (NASDAQ: SHLD), Macy's (NYSE: M), Linens 'n Things and JC Penney (NYSE: JCP) showed great weakness.

Abercrombie's image problems may be affecting its stock price, which has been on a steady decline since the beginning of 2008, when it peaked at around $80.

Currently, the stock is hovering in the low $20s, with no signs of a turnaround.

Paul Carton is the Director of Research for the ChangeWave Alliance Research Network. The Network is a group of 20,000 highly qualified business, technology and medical professionals -- as well as early adopter consumers -- who work in leading companies of select industries.

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Last updated: November 08, 2009: 10:08 PM

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