A&F and other traditional teen stores have to adapt in an uphill battle to turn their businesses around as mall traffic drops and shoppers' tastes change.
A slowly recovering economy is making parents and teens to think twice about splurging on clothes. Expensive standbys like Abercrombie also have lost business to "fast fashion" chains like H&M, known for quickly churning out trendy $9 tops.
Teens are also spending less time at the mall and more time researching and buying on mobile devices. And when they do buy, they're more likely buying the latest gadget than filling their closets.
Last week, Aeropostale last week reported its seventh consecutive quarterly loss on slumping sales. It also forecast another loss in the current quarter.
At the same time, Aeropostale, based in New York, reinstated Julian Geiger, its former CEO.
Earnings at another competitor, American Eagle, have also declined on weak sales.
Mike Jeffries, A&F's CEO, said in a statement that the retailer has made progress in stocking trendier clothing and said the improvement is "clearly evident" in its back-to-school business.
"In a continuing challenging environment, our sales for the second quarter were somewhat below plan, but we have seen modest improvement since the back-to-school floor set," he added.
A&F has been shortening the time from developing a design to shipping the clothing to the stores. It's also changing its color palette.
WGSN's Wolfenden said Abercrombie announced earlier this year that it would start using black in their collections, something it had never done before. She praised some of the current fashions in the stores, which include Aztec printed silky pants, sleek maxi-dresses and slouchy T-shirts with scenic images and French sayings.
But the big change, of course, shoppers are seeing is clothes that don't shout the Abercrombie name.
For the fall shopping season, A&F has reduced its logoed merchandise by half, and plans to go further.
"In the spring season, we are looking to take the North American logo business to practically nothing," Jeffries told investors on a conference call