In a memo released Tuesday morning, Abercrombie & Fitch announced that CEO Michael Jeffries, who has been in the position since 1992, will retire effective immediately.
In addition to the chief executive position, Jeffries will also retire from his spot on the retailer’s board of directors.
Abercrombie’s Arthur Martinez, currently the non-executive chairman of the board, will take over as CEO. The board has also established a new office of the chairman, which will “oversee the company’s strategic direction,” according to a statement released by the company.
Abercrombie & Fitch is in a tough spot, recently 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.
Perhaps these modifications weren’t enough to lift the retailer out of its funk. In a statement released on Tuesday, Jeffries said that he believed now “was the right time for new leadership to take the company forward in the next phase of its development.”
At press time, Abercrombie stock was up nearly 7% over Monday’s closing price on news of Jeffries’ retirement.