Cramer: Not enough ‘cool people’ for Abercrombie
CNBC's Jim Cramer has an idea why sales have suffered lately at Abercrombie & Fitch—the trendy clothing maker country is now too cool for consumers.
"Maybe there aren't as many cool people in this country as we thought, because when you have the significant gross-margin erosion ... that means there's not enough cool people to pay for your stuff," Cramer said Thursday on "Squawk on the Street."
Abercrombie posted losses in its third quarter on Thursday, in part because of closing its Gilly Hicks intimate apparel stores at the end of the second quarter. The teen clothing retailer, based in New Albany, Ohio, lost $15.6 million during the past year, and shares of the company have dropped 18.17 percent during that period.
Abercrombie, known for its racy catalogs and shirtless in-store hosts, also operates the Hollister clothing store brand.
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"I still find it pornographic," Cramer said of the Abercrombie's branding. "That's probably a good look in the '90s. It's tiring."
Cramer added: "There's a core value to anything but it can be destroyed, like with J.C. Penney. Retail's a very funny game."
(Read more: Cramer blasts Abercrombie ads as 'soft porn')