Dive Brief:

• Abercrombie & Fitch Wednesday said Q4 sales dropped 14% to $1.12 billion, as same-store sales fell 10% across the company, missing expectations.

• Soft demand for its namesake and Hollister brands led to significant promotions, and the strong dollar added to its woes, the retailer said.

• Abercrombie also said the coming months would see more struggles, but that it will reduce its logo-based inventory​ in the first six months of this year, and will see fewer losses on that. Its stock fell Tuesday and early premarket trading Wednesday.

Dive Insight:

Abercrombie & Fitch has been working for months to shift away from its perfumed, cool-kid, logo-centric image, but hasn’t come up with its silver bullet yet. It’s hard to know what the retailer can do next, with other teen-focused apparel retailers like Delias, which declared bankruptcy last year, and Aeropostale​ also hurting.

But, perhaps as a beacon of light, rival teen retailer American Eagle also reported its fourth quarter earnings Wednesday with an increase in both profit and sales. The company has suffered from some of the same problems as Abercrombie, including teens' shifting preference to fast fashion and a shrinking demand for heavily-labeled merchandise.

Another similarity: Both American Eagle and Abercrombie are currently lacking a permanent CEO in their ranks.