Abercrombie & Fitch Ceo Finally Steps Down

Michael Jeffries, longtime CEO of teen clothing retailer Abercrombie & Fitch has stepped down from his role at the company, effective immediately. The news comes just days after Abercrombie & Fitch sales dropped to 12 percent in the third-quarter.

Jeffries, 70, and the board of directors made the decision."It has been an honor to lead this extraordinary talented group of people," Jeffries said in Tuesday's press release. "I am extremely proud of your accomplishments. I believe now is the right time for new leadership to take the company forward in the next phase of its development."

Arthur Martinez, 75, who is currently the non-executive chairman of the board of the teen retailer, is stepping in as executive chairman while the company searches for a replacement."It is impossible to overstate Mike Jeffries's extraordinary accomplishments in building Abercrombie & Fitch to the iconic status the brand now enjoys," Martinez said in a statement released Tuesday. "From a standing start two decades ago, his creativity and imagination were the driving forces behind the company's growth and success."

Jeffries who helmed the clothing brand for over two decades, was one of the only openly gay business leaders in the US and turned the retail chain into a hip brand.

Following the news of Jeffries' departure Abercrombie & Fitch's stock price shot up 6.6 percent on Tuesday morning. However his departure won't be an immediate fix for the company's recent decline in sales.