Abercrombie & Fitch’s chief executive Mike Jeffries is stepping down from his role with immediate effect.
The board of the preppy teen retailer is currently looking for a replacement for Jefferies. Abercrombie & Fitch’s non-executive chairman, Arthur Martinez, will become executive chairman as part of the changes.
Jeffries has come under fire as Abercrombie and Hollister clothing sales and profits have plummeted over recent seasons. He was stripped of his chairman role earlier this year.
Following news of Jeffries’s departure, stocks were up 9.8% to $28.94 (£18.44).
In January, the business created a new chief operating officer position, promoting chief financial officer Jonathan Ramsden into the role, and in May named four new independent directors to its board as part of a deal with investor Engaged Capital.