A&F Brand Trademark Attractiveness Drop Plan Review Market Strategy Adjustment

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What's more, fashion brands are less and less dependent on their own logo, especially the brand accessories. Companies such as Coach and Gucci (Gucci) have desalinated their trademarks on products.

A&F's move confirms the change in consumer behavior over the past few years, and confirms that youth supplies retailers are feeling the pressure in recent quarters.

Take A&F as an example, female customers are more attracted by fast fashion brands.

Although the number of logo products in A&F has been reduced, the intensity of the reduction is still less than that of the Hollister brand.

According to the comparable store sales in the second quarter, sales of A&F's main brand stores only declined slightly by 1%, while Hollister's sales dropped by 10%, thanks to A&F's advantage of fast fashion.

"We hope to end North America in the spring," chief executive Michael Jeffries told a conference call with Wall Street analysts.

The trademark business, however, will still protect trademark rights in other regional stores. "

Jonathan Ramsden, chief operating officer, also said in a telephone interview: "our consumers are increasingly ignoring brand labels.

They never want to become a mobile billboard.

Ramsden explained that due to the "different international business situations", the company will still provide support for trademark operations in overseas stores.

In the conference call, Jeffries also talked about how A&F will make up for the loss of trademark business affected by the company's pursuit strategy.

The pursuit strategy includes testing the product and adjusting it according to the customer's feedback, so as to shorten the delivery period of the product.

Jeffries said: "only 20% of the women's wear products were applied to the chase strategy this quarter. We hope that this ratio will double in the spring of 2015.

At the same time, in view of the fact that only a very small number of men's clothing products have applied this strategy, we also hope to significantly expand the application scope of the pursuit strategy.

The chief financial officer, Joanne Crevoiserat, said the pursuit strategy involves "injecting the trend into products.

This allows us to make product in time. "

She explained that the company is pursuing a strategy in business practice and limiting the amount of incoming products to ensure the smooth implementation of the strategy.

It also says that the pursuit strategy enables companies to more flexibly control the ongoing production of products.

A&F announced the change of strategy at the same time announcing its second quarter results.

In the three months ended August 2nd, the company's net income increased by 13.3%, to $12 million 900 thousand, and to 17 cents per diluted share, compared with $11 million 400 thousand last year and 14 cents per share.

The adjusted income is 19 cents a share, higher than Wall Street's expected 11 cents.

Net sales fell by 5.8% to $890 million from $945 million 700 thousand, less than Wall Street's forecast of $998 million.

Comparable store total sales fell by 11%.

Within six months, the company suffered a net loss of $10 million 800 thousand, a loss of 15 cents per share, compared with a net income of $4 million 200 thousand, or 5 cents per share, in the same period last year.

Net sales fell by 4% from $1 billion 780 million to $1 billion 710 million.

Although A&F quickly launched new strategies and vigorously promoted its business, the company's share price continued to perform poorly, and its share price fell 4.8% in New York stock exchange, which was $41.87.

Apart from the fact that corporate earnings are not as good as expected, financial analysts are also disappointed with the decline in A&F sales.

The company expects annual earnings per diluted share to be between 2.15 and 2.35 dollars.

Unlike A&F, Pacific Sunwear of California, a teenage apparel retailer, only reported its results after the stock market closed. The company recorded a profit in the second quarter.

The company said that compared with a net loss of $19 million 200 thousand a year ago and a loss of 28 cents per share, net income amounted to $7 million 500 thousand in the three months ended August 2nd, or 10 cents per diluted share.

The net sales rose by 0.8% from $210 million to $211 million, due to a 0.3% rise in salary expenditure.

The company's chairman and chief executive, Gary H. Schoenfeld, said that the sustained growth in sales of men's products has led to an improvement in the company's sales throughout the whole quarter.

Looking ahead to the third quarter, Schoenfeld said: "although the prospects for cowboy products are not optimistic, our first autumn products still have a good response, which is greatly encouraged by us.

We still adhere to the core strategy, focus on attracting new customers, and make PacSun unique in this highly competitive market.

Pacific Sunwear's share price rose 2.2% to $2.30, but after the second quarter earnings announcement, the share price fell 4.4% in the early post market trading, which was $2.20.

This is because the company is expected to be affected by operating expenses. The third quarter diluted earnings per share will be between 4 and 9 cents, higher than Wall Street's 2 cents per share.