RETAILING

years-long reboots.

But the turnaround efforts have tested the patience of some on Wall Street. Analysts at Stifel Financial Corp. said in a note to investors that even though Hollister merchandise is “trend right,” the Abercrombie brand still has a long way to go.

Wall Street’s negative response mirrors a recent consumer study conducted by WD Partners, said Lee Peterson, an executive vice president at the Dublin consulting firm.

“We just did a study and measured 100 brands,” Peterson said. “Abercrombie did not score well. But the negative comments from consumers were all about issues from three years ago or more. If there’s anything Abercrombie should do is say that they’re not the same company they were five years

ago, because everyone thinks it’s still the same company.

“But it’s changed. The merchandise is better. Not a lot of people get that. The thing that needs to happen the most is the marketing. That’s probably the hardest missing piece.”

“Sometimes the only solution to a problem is to fight your way out of it,” said financial blogger Will Ashworth at InvestorPlace in a posting Monday.

“That’s exactly what Abercrombie’s board has chosen to do. I think it’s the right move given that Hollister continues to grow its business successfully, and Abercrombie continues its repositioning as a brand that adults can feel good about — something that wasn’t always the case in the past.”

Hollister remodeled 64 stores last year, and consumers have responded favorably to the improvements, helping Hollister post the first quarterly rise in comparable-store sales in a year.

In February, Abercrombie rolled out its first A&F store remodel in more than 15 years and in June announced it will open five remodeled stores in the United States and one in Hong Kong this year.

Although the new Abercrombie stores are smaller than other stores, the prototype has been a hit with customers and has delivered better sales per square foot than past locations, the company says.

Among the features are fitting-room suites with light and music controls and a phonecharging dock. One thing that’s absent is the heavy fragrance. The chain calls its new stores “subtly scented.”

“They’re turning it around,” Peterson said. “It feels a lot better. Their stock took a hit, but it should be good in the long run.”