Abercrombie & Fitch is so far the only major U.S. retailer that has publicly agreed to a legally binding safety accord that aims to improve factory conditions for garment workers in Bangladesh.

The retailer's sustainability director, Kim Harr, told MarketWatch that agreeing to the safety accord "is the right thing to do to bring about sustainable, effective change.”

Wal-Mart and Gap announced yesterday that they will not be signing on to the agreement because they don't want to be held legally responsible for improving factory safety.

Companies that sell merchandise produced in Bangladesh have been under pressure in recent weeks to agree to a legally binding commitment to factory safety. The issue has received global attention after a building collapse in Dhaka last month killed about 1,200 people, many of whom were garment workers.

European-based retailers H&M and Inditex, which owns fast-fashion giant Zara, joined the safety accord earlier this week. The deadline for companies to sign on is midnight.

Another major U.S. company, PVH Corp., which owns Calvin Klein and Tommy Hilfiger, agreed to the safety accord last year.

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Abercrombie & Fitch CEO Michael Jeffries finally addressed the uproar over his brand's exclusion of plus-sized women, but he isn't apologizing. 

In a statement to the Los Angeles Times, Jeffries said that his “choice of words was interpreted in a manner that has caused offense.”

Jeffries said that his “7-year-old, resurrected quote has been taken out of context,” but did admit that the brand “targets its marketing at a particular segment of customers.”

While exploring why Abercrombie doesn't make clothes for large women, Business Insider highlighted comments Jeffries made to Salon in 2006 about the importance of sex appeal. 

“It’s almost everything. That’s why we hire good-looking people in our stores. Because good-looking people attract other good-looking people, and we want to market to cool, good-looking people. We don’t market to anyone other than that,” Jeffries said. 

His comments and our story that connected his comments to the exclusion of XL and XXL women's clothing sizesresulted in an online petition, video protest, and viral letter demanding that Abercrombie accept more diverse body types. 

This is the first time the company has responded since the story was first posted two weeks ago. 

SEE ALSO: Meet The Model Who Could Take Miranda Kerr's Place At Victoria's Secret >

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Abercrombie & Fitch's reputation has taken a hit since Business Insider's story tied CEO Michael Jeffries' comments about beautiful people to the company's refusal to offer XL and XXL clothing. 

Two weeks ago, the company's reputation was similar to that of competitors American Eagle Outfitters and H&M, according to a report by YouGov BrandIndex. 

But since the story, Abercrombie's reputation among 18 to 34-year-olds has tanked. 

YouGov asked respondents "If you've heard anything about the brand in the last two weeks, through advertising, news or word of mouth, was it positive or negative?"

Here's a chart showing how Abercrombie compares with other brands: 

The company just responded to the uproar today, with Jeffries sticking by the company's policies and refusing to apologize for comments he made that he only wanted "cool" and "beautiful" people wearing the brand. 

SEE ALSO: H&M Subtly Used A Plus-Sized Model For Its Swimsuit Collection >

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A former manager at Abercrombie & Fitch has revealed the why the stench of cologne emanates from stores. 

"It's mandatory to 'spritz' 10 pumps of cologne several inches from the clothes every hour, in addition to the scent spraying machines that only some stores have," the woman revealed in a Reddit Ask Me Anything. 

[NOTE: While Reddit's Ask Me Anything's are verified by an independent moderator, Business Insider can't independently confirm the woman's identity.]

The cologne, Fierce, is sprayed so often that the woman said her nails were brittle and her eyes were red after a full day of working. 

The woman says she quit after growing tired of her shallow manager. 

Abercrombie has been in the hotseat since Business Insider connected CEO Michael Jeffries' comments about wanting beautiful people to shop there to the company's exclusion of clothing sizes for large women.

Jeffries has refused to apologize for his comments. 

SEE ALSO: Meet The Model Who Could Take Miranda Kerr's Place At Victoria's Secret >

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A former manager at Abercrombie & Fitch claims that the company routinely fired employees who were heavier than the manager thought they should be. 

"People get fat or new managers come in who disagree with the looks and bodies of the staff: very common problem. So that manager will fire them or take away all their hours. It's pretty scandalous but all too common," the woman said in a Reddit Ask Me Anything. 

[NOTE: While Reddit's Ask Me Anything's are verified by an independent moderator, Business Insider can't independently confirm the woman's identity.]

The woman said the practice was encouraged by higher-ups. 

"It is downright encouraged from the district managers and their bosses. If your boss visits your store and ugly person, fat person or someone out of dress code is working, then you're in big trouble," she said. 

Still, beauty is in the eye of the beholder, she said. 

"There is no paper that says, too fat and your boss won't say it," the former worker said. "You decide it when you're out recruiting (new employees.)" 

The woman says she quit after growing tired of the shallow environment there. 

Abercrombie has been in the hotseat since Business Insider connected CEO Michael Jeffries' comments about wanting beautiful people to shop there to the company's exclusion of clothing sizes for large women.

Jeffries has refused to apologize for his comments. 

SEE ALSO: Meet The Model Who Could Take Miranda Kerr's Place At Victoria's Secret >

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Abercrombie & Fitch's exclusion of large women hit close to home for Philadelphia-based writer Colleen Radano. 

Radano sent us a letter about how she was bullied by kids who wore Abercrombie in high school. 

Abercrombie has been in the hot seat since Business Insider connected CEO Michael Jeffries' comments about wanting beautiful people to shop there to the company's exclusion of clothing sizes for large women.

Abercrombie is standing by its exclusion of large women, even after public protests about the CEO's attitude. 

We published an abridged version of Radano's letter. Read the whole thing here.

A Note to Michael Jeffries, CEO, Abercrombie & Fitch.

Mike,

I write to you in response to the recent media outburst surrounding your unfortunate decision to further declare the exclusions that exist in your soft-core porn clothing store, Abercrombie & Fitch. I read your statements, your comments, your beliefs and I’ve let them sink in for a few weeks. In fact, I initially decided not to respond at all since I have always chosen to not shop at your store anyway. The fact that your store doesn’t make or sell clothing higher than a size 10 or a “L” is actually news to me. I think your store, quite literally, stinks.

Now, I worked at Guest Services inside of my local mall and I had to deal with the customers who complained about the abundance of musky stench that infects the sinuses of each passer-by, but I did not write you then. I heard that you were targeting girls as young as eight years old in your campaigns over the years, sending them your pornographic catalogs and full-knowingly attempting to engage them into becoming sexual, “cool” teens who would shop at your store, but I did not write you then. But when you specifically called out my plus size ass in your latest statements, Mike, I’m ready to write.

You see, I told you, I’m polite to the point where it makes me uncomfortable to just call you “Mike” (but I’m over it). I know I’m polite because I’ve met impolite people (this is you). I think back to high school, where I attended a “well-off” private, Catholic, college preparatory school. I think of the kids who, when they weren’t wearing a uniform, sported your clothing. I regret to inform you that “cool” doesn’t exactly come to mind, but “expulsion”, “bully”, “pretzel thrown at me at lunch”, and “harassment” actually do. They were ALL on the football team and I bet you, Mike, find them to be cool. 

You see, it was the kids wearing your clothing who thought they were so unstoppably “cool” (because you told them they are) that they could therefore harass girls all throughout our class-- girls of all different shapes and sizes. They thought they could write derogatory comments across one girl’s driveway at home, and they were expelled. They thought that they could call the girls at home at night, plaguing them with hurtful words and hysterical laughter, and they were suspended. 

I’m 27 years old, Mike, and I received a social media message from one of these bullies just last year, with a wink face… that’s it, just a wink face. It was a cruel reminder, a hurtful flashback.. a wink is all it takes to tell me, almost TEN YEARS after high-school graduation and the last time we saw each other, that he still is teasing me, he is still mean, he is still a bully, he is still SO COOL, and he wanted me to know.

When I re-visited your outrageous commentary today, I discovered the long list of rules that you require that your private jet flight attendants fulfill.

I can’t say I won’t buy your products because, as I’ve said, I never did and, secondly, you’ve excluded me from being able to do so anyway. I know there is currently a young all-American man who is clothing the homeless by donating his A&F clothes because your claims sicken him too, Mike. I know there are a bunch of moms, fully disregarding the former money spent on your clothing, rallying up mounds of their kids’ clothes that display your A&F tags, and ridding of them. 

And I’ve got news for you, Mike… in the world, girls with huge hooters are INCREDIBLY cool, and they may require an “XL”.

Get with it,

Colleen Radano.

SEE ALSO: Abercrombie & Fitch CEO Won't Apologize For Only Wanting Cool, Thin People Wearing His Clothes >

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Abercrombie & Fitch (A&F) has been in the news a lot lately.

A seven-year old quote attributed to A&F CEO Michael Jeffries has sparked a media conflagration thanks to a YouTube video created by recent USC graduate Greg Karper that has generated over four million page views.

Most in the media have lined up against Jeffries’ quote because it disparages young people whose body style does not fit the CEO’s definition of what is cool. On other hand, some have defended A&F’s right to take a strong “politically incorrect” position.

Rather than take sides, I believe it is more useful to analyze the marketing issues that are at the heart of this controversy.

Before doing that, it is first necessary to examine the elements that have fueled the debate – Mr. Jeffries quote and Greg Karper’s video.

Quotefrom Jeffries’ interview in Salon magazine

In his 2006 Salon interview, Michael Jeffries said, “In every school there are the cool and popular kids, and then there are the not-so-cool kids.

"Candidly, we go after the cool kids. We go after the attractive all-American kid with a great attitude and a lot of friends. A lot of people don’t belong [in our clothes], and they can’t belong.

"Are we exclusionary? Absolutely. Those companies that are in trouble are trying to target everybody: young, old, fat, skinny. But then you become totally vanilla. You don’t alienate anybody, but you don’t excite anybody, either.”

Greg Karper video

In his video, Greg Karper passes out A&F clothing to homeless people living on skid row in Los Angeles. His stated motivation is two-fold …

1. Provide clothing to the homeless, which he purchased at thrift stores so as not to give the money to A&F.
2. Reposition the A&F brand as “the world’s number one brand of homeless apparel.

Like it or not, Jeffries has the right general idea about positioning

Even if you disagree with the sentiment behind Jeffries quote, he is correct that it is better for a brand to take a clear position than to try to be all things to all people.

Good positioning requires brands to clearly delineate their target audience and to create brand images that provide unique and important benefits to that audience.

In a Forbes post, Roger Dooley even says that Jeffries is “Crazy Like a Fox.”

In her Mad Blog, Barbara Lippert reluctantly says, “it is a perverse win… for Jeffries.”

Where A&F gets it wrong

Even though Jeffries is right about the nature of positioning, his branding implementation misses the mark. A&F is an American lifestyle brand that supposedly targets 18 to 22 year olds that are cool, and its Hollister brand is positioned toward 14 to 18 year olds.

The problem is that the “cool” college kids do not think that A&F is cool anymore. And the “cool” high school kids feel the same way about the Hollister brand – partly because they emulate the college kids.

This means that A&F needs to get a better marketing information system to find out why its brand has lost its cachet in the US and parts of Europe.

Otherwise, Mr. Jeffries quote is making him look foolish – not for the reasons given by most in the media, but because his thinking (as to what is cool) appears to be outdated.

Some confirmation that A&F is out of touch

My marketing class did a project for A&F two years ago, and my 171 “super cool” students (I am naturally biased) told the Company in marketing plans that the A&F brand is no longer considered cool on college campuses.

They pointed out that the students that wear A&F gear at USC are from Asian countries where just about everything associated with the American lifestyle is considered cool, trendy, and desirable.

A post entitled Companies That Will Never Recover from Their Mistakes confirms, “The specialty retailer did a poor job of judging its market beginning in early 2009.”

Even though he had the right idea, some think Greg Karper is wrong too

Ironically, even though I am sure that Greg Karper had the best of intentions in creating his video to help the homeless and hijack the A&F brand, some are not entirely supportive of his video or position.

In a blog comment to a Los Angeles Times post with the headline Man hands out Abercrombie clothes on skid row in bid to shame brand,

Sonsern Lin says, “Many believe that the whole idea of #fitchthehomeless is degrading because the homeless people are being used to contrast the idea of cool.The attempt to #fitchthehomeless looks down upon homeless people as ‘unworthy,’ or lesser human beings.

And it’s not clear how or whether, from the homeless perspective, this stunt is actually helping anything.”

Others attribute his motives to generating publicity for himself, which is a danger when anyone goes public with their good deeds. While I do not share those negative views, I know that quite often “no good deed goes unpunished.”

Taking a stand on any issue tends to draw those with an opposite point of view into the discussion.

So what is the main marketing issue that is negatively impacting Abercrombie & Fitch?

While all the recent media hoopla is about the quote from seven years ago, the real problem for A&F is not any fallout from the quote.

It is that the Company has lost its audience and brand image in the US. It is going to take a lot more than half-naked models, loud music, and stores wreaking of cologne to get the Millennials 14 to 22 in the US to think the brand is cool again.

A&F needs to do some major brand research to find out what its target audience thinks of the brand and what it needs to do to re-tool its brand image. The real problem is the cool kids are different then they were seven years ago, and what’s cool has changed too.

Unfortunately for A&F, a good number of the “cool” kids don’t think A&F is cool anymore.

SEE ALSO: Abercrombie & Fitch CEO Won't Apologize For Saying He Only Wants Cool Thin People To Wear His Clothes

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Earlier this month, Business Insider reported on Abercrombie & Fitch CEO's Mike Jeffries refusal to market or sell clothes for women who need XL or above sizes.

"We want to market to cool, good-looking people. We don’t market to anyone other than that," Jeffries said.

The fashion retailer's definition of "cool and good-looking" does not include plus-sized women since the brand refuses to manufacture women's clothing in XL and XXL.

In America today 67% of women are considered plus-sized, and one of them has decided to speak up.

The Militant Baker, a voluptuous blogger known as, Jes, has created an "Attractive & Fat" image campaign which features her modeling – sometimes topless – in Abercrombie-style clothing with a slim male counterpart.

Along with the images, she has posted a letter to Jeffries in response to the CEO's comments and his apology shortly thereafter.

Jes wrote to the CEO: 

Never in our culture do we see sexy photo shoots that pair short, fat, unconventional models with not short, not fat, professional models. To put it in your words: "unpopular kids" with "cool kids". It's socially acceptable for same to be paired with same, but never are contrasting bodies positively mixed in the world of advertisement. The juxtaposition of uncommonly paired bodies is visually jarring, and, even though I wish it didn’t, it causes viewers to feel uncomfortable. This is largely attributed to companies like yours that perpetuate the thought that fat women are not beautiful.

Here's a selection of the images she posted. We are just as curious as Jes as to Mike Jeffires' response.

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Abercrombie & Fitch executives say they're being led by someone other than CEO Michael Jeffries: his partner. 

Matthew Smith, who has been in a relationship with the openly gay Jeffries for the past decade, is intimately involved with the day-to-day operations at Abercrombie, reports Sapna Maheshwari at Buzzfeed. 

Smith has been involved in choosing Abercrombie locations, gets real estate briefings, and even keeps track of tidiness at stores, Maheshwari writes. 

"It seems to be very unorthodox, and a governing body should have something to say about that, if in fact you have a person who is basically not an employee of the organization coming in to look at the company’s papers and have access to things,” Katherine Phillips, a professor at Columbia Business School, told Buzzfeed. 

Smith's involvement at Abercrombie is just one of a litany of complaints board members have had about the CEO. 

Last year, a lawsuit alleged that Jeffries micromanaged employees on the company's private jet, giving his crew a stringent dress code and play making them play certain music on flights.

The CEO has also come under fire since Business Insider reported about his exclusion of plus-sized women in his clothing line. 

Fans of Jeffries have said his conviction and attention to detail make him a great CEO. 

But his critics feel that he lacks the flexibility needed to make it in today's challenging environment. 

SEE ALSO: What Abercrombie & Fitch Ads Would Look Like With Plus-Sized Models >

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Abercrombie & Fitch has finally apologized for the exclusion of large women from its clothing line. 

“We look forward to continuing this dialogue and taking concrete steps to demonstrate our commitment to anti-bullying in addition to our ongoing support of diversity and inclusion," the company said in a release, according to The Huffington Post. "We want to reiterate that we sincerely regret and apologize for any offense caused by comments we have made in the past which are contrary to these values."

The company has been under fire since Business Insiderlinked the company's refusal to offer larger sizes for women to comments the CEO made in a 2006 Salon interview. 

“In every school there are the cool and popular kids, and then there are the not-so-cool kids,” he told Salon. “Candidly, we go after the cool kids. We go after the attractive all-American kid with a great attitude and a lot of friends. A lot of people don’t belong [in our clothes], and they can’t belong. Are we exclusionary? Absolutely."

Yesterday, a group of teens traveled to Abercrombie's headquarters in Columbus to protest, People Magazine reported. 

Executives invited the teens, including the 18-year-old who started a Change.org petition about the topic, into the meeting. 

The petition now has more than 70,000 signatures. 

SEE ALSO: 13 Ways To Screw Up Your Job At Wal-Mart >

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When online fashion retailer ModCloth decided to expand its plus-size offerings, Chief Creative Officer Susan Koger reached out to the company's 1,500 vendors for help. 

Only 35 responded that they were willing to do plus-size collections. 

"Our community drives most of our decisions, and they were giving feedback that they wanted plus-size clothing," Koger told us. "The hesitation [from vendors] was surprising to me as a business person because I see an opportunity to sell a lot more clothing." 

Despite the initial setback, ModCloth is charging forward to offer a variety of plus-size clothing. Now, about 100 vendors have agreed to do the lines. 

"For too long, plus-size women have been relegated to what has been called the 'plus-size ghetto,'" Koger said. "Businesses have limited offerings for them, and often don't take the time to make sure the clothing will fit a curvier person." 

To make sure ModCloth gets plus-size right, the website hired in-house designers who are focused on making flattering and comfortable clothing as part of its private label. 

Koger expects plus-size to be a huge source of growth for the brand. 

"This is just the beginning for us," Koger said. "Serving more customers is an exciting and rewarding opportunity for us." 

ModCloth is onto something: The majority of the apparel-purchasing population is now plus-size, according to financial advisory firm ACM Partners. 

Consumers are also demanding that companies accommodate curvier shoppers. 

Abercrombie & Fitch has been under fire since Business Insider linked the company's refusal to offer larger sizes for women to comments the CEO made in a 2006 Salon interview about building his business around "sex appeal."

SEE ALSO: 16 Small Businesses On The Verge Of A Breakthrough

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Abercrombie & Fitch had its heyday about a decade ago during a resurgence of preppy fashion. 

Since then, a quirky, hipster aesthetic has replaced prep casual with the teen set. And Abercrombie is trying to get on the eclectic bandwagon.

The problem? Fans of Abercrombie hate its hip makeover. 

Abercrombie's Facebook community doesn't "understand Abercrombie's styling" and think the brand "is straying from their original design roots," Eric Beder, an analyst at Brean Murray Carret & Co., said in a note to clients. 

The retailer selected "festival favorites" designed for summer music festivals that included flowery tank tops and embellished denim cut-offs:

It also released a line of Pop Art t-shirts that looked reminiscent of Roy Lichtenstein: 

Even the classic Abercrombie & Fitch graphic t-shirts have bold redesigns: 

Responses on the brand's Facebook page show a clear backlash. 

"What happened to the style?" one fan wrote of the Pop Art t-shirts on the brand's Facebook page. 

Dozens of comments also discussed the company's merchandising decisions. 

One called an Urban Outfitters-esque sweater with a Native American chief on the front "the ugliest thing I've ever seen." 

"Definitely not impressed with the designer work in the men's collection this season," another fan said. 

Abercrombie's brand recognition is strong, but its attempts at becoming hipster are so obvious they're alienating customers. 

The brand's designers will have to figure out a way to combine preppy with hip. 

Facebook fans are also still discussing Abercrombie's exclusion of large women, which came to light after a Business Insider story last month. 

SEE ALSO: 13 Processed Foods Companies Try To Convince You Are Natural

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Abercrombie & Fitch pulled a t-shirt mocking musician Taylor Swift after fans swarmed the retailer with complaints. 

The shirt in question read "#more boyfriends than t.s.," a jab at Swift's tumultuous love life. 

Sapna Maheshwari at Buzzfeed points out that the retailer's hotline now says that the shirts have been pulled from shelves. 

Ardent fans started a Change.org petition asking the shirt be removed, though it only has 81 signatures.  

SEE ALSO: 19 Small Businesses On The Verge Of A Breakthrough

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Abercrombie & Fitch bans the color black from its brand. 

The retailer confirmed to Business Insider that it doesn't sell black clothing. Management also discourages corporate employees at its Columbus, Ohio headquarters from wearing the popular color at work. 

Employees told us that it's common knowledge that notoriously meticulous Abercrombie CEO Michael Jeffries is behind the exile of black clothing. 

"Management will tell people that Mike hates the color, and so we're not supposed to wear it to work," the employee, who wished to remain anonymous, said. "It even applies to coats in the winter." 

The company provided us with this statement about why it doesn't care for the color: 

"Abercrombie & Fitch does not sell black clothing and discourages wearing it at our home office and in our stores, because we are a casual lifestyle brand and feel black clothing is formal. We have nothing against black clothing and feel it is perfectly appropriate for things like tuxedos."

Among its competitors, the ban on black is unique to Abercrombie: American Eagle sells a plethora of black options. 

It's another example of the power the image-conscious Jeffries wields over the brand. 

Jeffries is said to be the reason Abercrombie doesn't sell women's XL or XXL clothing. Its largest women's pants are a size 10, while H&M's standard line goes up to a size 16, and American Eagle offers up to 18. 

He explained his obsession with traditional beauty in a 2006 interview with Salon. 

“In every school there are the cool and popular kids, and then there are the not-so-cool kids,” he told the site. “Candidly, we go after the cool kids. We go after the attractive all-American kid with a great attitude and a lot of friends. A lot of people don’t belong [in our clothes], and they can’t belong. Are we exclusionary? Absolutely."

A Bloomberg story last year detailed the crazy rules Jeffries had for models working on the company's private jet. 

The flight crew had to wear Abercrombie jeans, polo shirts, flip-flops, sweatshirts and a winter coat. Jewelry besides wedding rings and watches was banned. 

SEE ALSO: This Map Shows The Most Famous Brand From Every State

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Abercrombie & Fitch started as a store for outdoorsmen and evolved into the epitome of preppy cool. 

But recently, the store has lost its way. 

Abercrombie has been criticized for excluding large women and promoting unrealistic standards of beauty.

Sales were also hit as more alternative fashion trends became more popular. 

A&F started as a store for outdoorsmen.

David T. Abercrombie founded the waterfront company at South Street in Manhattan in 1892. It sold hunting and fishing equipment and was called Abercrombie Co.

A few years later, Ezra Fitch, a high-profile lawyer and regular customer, purchased a large share of the growing company. In 1906, when he was officially named a co-founder, the store was renamed Abercrombie & Fitch. 

Abercrombie wanted to continue to provide outdoor gear while Fitch had a greater interest in the general retail so the two eventually parted ways.

It eventually grew into a department store on NYC's Madison Avenue.

Abercrombie sold his share of the company in 1907, enabling Ezra to achieve his goal of expanding the store's general retail. A&F started a mail-order catalogue and opened a 12-story location on Madison Avenue in New York City.

The department store had a shooting range and golf school in addition to sporting goods and apparel. 

In 1910, it became the first retail store to sell both men's and women's clothing.

In 1939, A&F branded itself "the greatest sporting goods store in the world."

Abercrombie & Fitch was the official outfitter of Charles Lindbergh's historic flight across the Atlantic in 1927.

Earnest Hemingway and Teddy Roosevelt were also patrons of the store.

Abercrombie & Fitch CEO Mike Jeffries is one of the most overpaid executives, according to a recent report by shareholder advisory firm Glass Lewis about executive compensation. 

Abercrombie has floundered since 2009, when it nearly didn't turn a profit. Since then, the preppy clothing company has struggled to connect with increasingly alternative customers. 

But through the downturn, Abercrombie has continued giving Jeffries insane perks. 

In 2011, it paid him $4 million to stop using the company jet, according to the report. This year, his compensation package was padded with access to lucrative stock appreciation rights. 

Shareholders are disgruntled about his insane pay—only 23% approved his compensation package at the annual meeting in June. He earned $8.16 million in 2012. 

So how does Abercrombie justify padding Jeffries' benefits, even while the company flounders under his leadership? 

By citing the incredible impact he's had on Abercrombie & Fitch as we know it. 

Jeffries, who has been CEO for about 20 years, is “effectively the founder” of modern-day Abercrombie, the compensation committee said at the meeting. 

Before he took over, Abercrombie was known as a store for outdoorsman. Jeffries transformed it into a sexy teen destination that was constantly making headlines. 

Still, it's been well over a decade since Abercrombie experienced its heyday.

Most recently, Jeffries has been criticized for his flailing international expansion plan, and for hurting brand perception by saying he only wants beautiful people to shop there. 

Abercrombie's compensation committee has given no indication that Jeffries' pay will take a hit as a result of these missteps.

His pay package shows the power he still wields over the brand. 

Here are the 10 companies with the most overpaid execs, according to the report: 

1. Hewlett-Packard 
2. Dean Foods 
3. Citigroup Inc. 
4. Valero Energy 
5. Abercrombie & Fitch 
6. Lockheed Martin 
7. Safeway 
8. J.C. Penney 
9. Hospira
10. Bank of New York Mellon 

SEE ALSO: How Consumers Fell In And Out Of Love With Abercrombie & Fitch

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Taylor Swift's fans threatened to kill two designers from an indie clothing company over a t-shirt listing the names of the singer's ex-boyfriends. 

Lex Houser and Andi Cross of Bad Kids Clothing told Fashionista that they designed the shirt for a friend to wear to a concert. 

But it didn't take long for the threats from so-called "Swifties" to start pouring in. 

Houser wrote about the incident on the company's blog: 

"I was about to go to sleep and my phone rang. I saw it was a random number and let it go.  Suddenly, 3 more calls right in a row.  I thought to myself that this was odd, so I checked my email.  The subject of the emails were "F--- YOU" and "OFFENSIVE TAYLOR SWIFT SHIRT - TAKE IT DOWN!".  Suddenly I realized what was happening." 

The designers also wrote that the Swifties threatened to kill them and burn down their store (which is, for the record, online-only).

Houser said in the blog post that all the uproar made him decide to make more of the shirts and sell them for $19.99. 

The shirt originally had the name of Glee singer Cory Monteith, but was removed out of respect after his death. 

Abercrombie & Fitch was the latest target of the Swift fans' rage. 

The brand pulled a shirt that said "More boyfriends than t.s." after a deluge of complaints. 

SEE ALSO: 19 Small Businesses On The Verge Of A Breakthrough

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An official watchdog group in France is accusing Abercrombie & Fitch of discriminatory hiring practices. 

The group, Defenseur des Droits, says it suspects people hired as models to entice customers at the front of Abercrombie's stores may also work as sales staff, Reuters reports.

It claims Abercrombie hires based on appearance, a discriminatory practice, according to Reuters.

"Though physical appearance may legitimately be a key and determining professional factor for models, that's not so for sales staff," watchdog leader Dominique Baudis said in a statement in Reuters. 

Abercrombie has long been criticized for its hiring practices. 

A class action lawsuit was filed against Abercrombie & Fitch in 2003. The lawsuit alleged that the company discriminated against minority applicants because they didn't fit the retailer's look. 

The company eventually agreed to pay $40 million to applicants and overhaul its practices. 

But in 2006, CEO Michael Jeffries admitted in an interview with Salon that he only wanted beautiful people working at his stores because the business was based on sex appeal.

“It’s almost everything. That’s why we hire good-looking people in our stores. Because good-looking people attract other good-looking people, and we want to market to cool, good-looking people. We don’t market to anyone other than that,” Jeffries said. 

SEE ALSO: How Consumers Fell In And Out Of Love With Abercrombie & Fitch

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Michael Jeffries is one of the most enigmatic leaders in the retail industry. Not much is known about the CEO of Abercrombie & Fitch, but his name is synonymous with the brand he has led for more than 20 years.

When Jeffries became CEO in 1992, Abercrombie & Fitch had 36 stores that generated approximately $50 million in annual sales.

Jeffries saw an opportunity in teen retail, and today Abercrombie has grown to more than 1,000 stores, with annual sales surpassing $4.5 billion, according to its annual report.

The brand is now at a crossroads. Its heyday was during a resurgence in preppy fashion, and it's had a tough time figuring out how to embrace the new quirky, hipster style. Abercrombie has also struggled in Europe, where it was banking on major growth.

The company must decide: Does it evolve to chase its aging consumers, or start targeting new, younger ones?

"[Jeffries] grabbed those young consumers like crazy” in the 1990s, said Robin Lewis, co-author of "The New Rules of Retail" and CEO of newsletter The Robin Report. The company's clothing, geared towards "cool, sexy, young people," was quickly met with commercial success in that category.

"But what happens, when you define [your customer] so clearly and well, is your core consumer begins to get older,” Lewis said.

Lewis said that while it would be risky for Abercrombie to focus only its core consumers, the alternative would not necessarily put the company back on its previous financial track domestically.

"If [Jeffries] repositions the brand for the young kids coming up, they will say ‘that was from my younger brother, I don’t want anything to do with it,'" he said.

To complicate the situation, Jeffries' leadership has recently come under scrutiny during the brand's state of uncertainty. Jeffries' definition of beauty has infiltrated the company's image and philosophy, and has consumers thinking twice about wearing the brand.

In a 2006 Salon profile — the best journalistic depiction of the media-aloof Jeffries — Benoit Denizet-Lewis described the image-conscious CEO:

He wants desperately to look like his target customer (the casually flawless college kid), and in that pursuit he has aggressively transformed himself from a classically handsome man into a cartoonish physical specimen: dyed hair, perfectly white teeth, golden tan, bulging biceps, wrinkle-free face, and big, Angelina Jolie lips.

Denizet-Lewis also wrote about the company's "young, painfully attractive..." employees, whom he observed during his two-day visit to its headquarters in New Albany, Ohio. Jeffries even admitted in the article that the company hires good-looking people to work in its stores, "because good-looking people attract other good-looking people, and we want to market to cool, good-looking people. We don’t market to anyone other than that."

The comments recently resurfaced in connection with the brand's refusal to stock plus-sized clothing for women, raising a firestorm.

Jeffries' workplace rules have also caused some to question his management style. BuzzFeed recently reported on a rigid set of "Workstation Standards" banning clutter from the company headquarters, and employees are not allowed to wear the color black, reportedly because Jeffries loathes the shade.

Abercrombie's direction and image must be managed carefully going forward. Lewis thinks Jeffries will continue to chase the younger, hip demographic, though he may have to make some changes to successfully do so.

“My opinion is that he probably will not go the direction of chasing after his aging original consumer," Lewis said. "He'll continue to try to keep the brand's positioning for young, sexy, cool, people in tact."

A representative for the retailer said, "We are continually evaluating opportunities and looking for the best ways to do business. We recently conducted a global research study on what our consumers think, and the data may lead us to make further changes throughout the business."

SEE ALSO: How Customers Fell In And Out Of Love With Abercrombie & Fitch

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(Reuters) - Abercrombie & Fitch Co (ANF.N),Aeropostale Inc (ARO.N) and American Eagle Outfitters Inc (AEO.N) have fallen out of fashion with fickle U.S. teen shoppers and aren't likely to win back their business anytime soon.

The retailers, known as the "3As," have long been popular for their cool basics like jeans, hoodies and t-shirts. But young shoppers are now less interested in their logo-centric clothes and more eager to shop forelectronics or go to low-cost, fast-fashion chains like Zara, Forever 21 and H&M that offer greater variety more quickly.

"The teen retailers seem to be not in style or in vogue at this point in time for their target consumers," said Bryan Keane, portfolio manager of the Alpine Global Consumer Growth Fund. "That usually does not turn around quickly,"

American Eagle on Wednesday gave a weak forecast for the fall, sending its shares to their lowest levels in a year and a half. American Eagle Chief Executive Robert Hanson told analysts the level of price slashing now is "unprecedented."

Aeropostale earlier this month said that comparable sales fell 15 percent last quarter, and Wall Street analysts expect earnings per share to fall by more than two-thirds to 21 cents this year.

It will report full quarterly results on Thursday, as will Abercrombie. Last week, Barclays lowered its profit estimate on Abercrombie because of the "intense promotional environment."

One of the big problems the 3A's face is a narrower clientele than that of H&M (HMb.ST) and of Gap Inc (GPS.N), which draw shoppers of all ages.

American Eagle gets about 80 percent of sales from its standard merchandise, and Hanson conceded that it's been tough to compete as his company tries to offer more fashion, more quickly.

"This team (young shoppers) wants to be fashionable but they don't want to spend a lot of money, and fast fashion works very well for that," said Eric Beder, a Brean Capital analyst, who has a sell recommendation on Aeropostale.

For example, H&M sells V-neck men's t-shirts for as low as $5.95, while Aeropostale t-shirts on clearance on Wednesday were priced at $6.99.

The result has been the constant pressure to discount. American Eagle's gross margin fell 3.6 percentage points last quarter to 33.8 percent of sales, below a more typical level of 40 percent.

Abercrombie declined to comment ahead of the its earnings, while Aeropostale and American Eagle did not return messages seeking comment.

FAST FASHION

The competition has only grown more intense as U.S. government statistics show young shoppers have gradually directed more of their spending toward electronics and less on clothes.

This comes as teens are facing lower employment levels this year, according to Challenger, Gray & Christmas, and their parents are grappling with higher payroll taxes, gasoline prices and a slow job recovery.

On top of all that, the three chains are facing an ever more crowded field as international 'fast-fashion' rivals are aggressively expanding in the United States.

H&M, a Swedish retailer, said its U.S. sales rose 10 percent in the first half of 2013 and it just launched a U.S. e-commerce site. It has 269 U.S. stores, after opening 40 last year.

Uniqlo, owned by Japan's Fast Retailing (9983.T), is opening six more U.S. stores this fall with a goal of having 200 by 2020.

U.S. sales at Zara, owned by Spain's Inditex S.A. (ITX.MC), more than tripled between 2007 and 2012, according to Euromonitor International.

U.S. rivals are also stealing market share from the 3A's: Forever 21 Inc's sales rose 82 percent during that period.

These new chains are bringing new products, such as Uniqlo long johns that warm up on touch, making it risky to offer the same-old, same-old.

"There isn't a lot of innovative clothing out there for anyone, and there are plenty of other places to buy clothes if you want," said Wendy Liebmann, CEO of WSL Strategic Retail.

Aeropostale is moving away from its logo business, and adding more expensive, fashionable items. But KeyBanc analyst Ed Yruma said in a note last week the move is a "tacit acknowledgement that the targeted teen customer base may have moved elsewhere."

Last year, many apparel chains got a boost from the bright color jeans craze. But this year, analysts say there is no such must-have to bring teens into the stores.

"Sometimes, you have something unique that everyone has to have," said Jessica Bemer, an analyst with Snow Capital Management. "But the look is going to be very similar this year to last year.

(Reporting by Phil Wahba and Dhanya Skariachan in New York; Editing by Jilian Mincer and Tim Dobbyn)

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