Abercrombie and Fitch To Make Logo-Free Clothing in North America

Abercrombie and Fitch, the famous clothing retailer, will reportedly be making logo-free clothes in North America from the coming Spring.

The company announced that it will be doing away with the large logo on its hoodies and T-shirts, a major part of its brand recognition in its 122 years of business.

The move to rid clothing of its emblazoned logos comes as a new market trend study found that more teenagers now prefer cheaper, unmarked clothing to expensive, brand-bearing clothes, the Wall Street Journal reports.

Abercrombie and Fitch's sales have been hit because it has failed to catch up with the trend.

"In the spring season we are looking to take the North American logo business to practically nothing." CEO Mike Jefferies said in a conference call with analysts Thursday.

"We are confident that the evolution of our assortment will drive further improvements going forward. We remain highly focused on returning to top-line growth and driving long-term value for our shareholders," Jefferies added.

News of the logo-dropping came at Abercrombie and Fitch's second quarter earning call. The company posted $890.61 million in revenues. Sales were down 7 percent, the firms's Hollister brand has taken a beating in recent times.

To save on costs, the company has been shuttering stores. By the end of this year, Abercrombie and Fitch plans on shutting down 60 stores when their leases expire.

"The problem is they (Abercrombie and Fitch) are still in the midst of a product transition, and the U.S. retail environment is very promotional," Betty Chen, analyst at Mizuho Securities told Fox News.

"The progress they've made is certainly very encouraging, but it sounds like they remain susceptible to the overall environment despite the changes," Chen added.

Markets reacted badly to the logo-dropping news. Abercrombie and Fitch shares were down 0.17 percent after closing trade.