Dive Brief:

• Battered holiday sales contributed to Abercrombie & Fitch’s Q4 12% sales decrease, which in turn led to a 58% decrease in quarterly earnings. Net sales for 2013 dropped to $1.29 billion from $1.47 billion in 2012.

• In an effort to regain its footing with the teen set, the company has begun to sell outside brands like Keds and Hollister in its stores and is contemplating partnerships with outside retailers like department stores to sell its brand.

• The company is also expanding abroad, and for the first time is making cheaper products specifically for its outlet stores.

Dive Insight:

Because Abercrombie & Fitch’s poor showing wasn’t quite as bad as expected, its stock did well after its earnings report was released. The retailer has also made significant moves of late, hiring First Insight Inc. earlier this month to help with merchandise and pricing based on consumer-driven analytics — which is where some of these branding and pricing moves are coming from. But, while Wall Street smiled on the company last week, there are many who believe that one of the most essential changes the company must make is to let CEO Mike Jeffries go, and still others who think the brand is not salvageable.