While competitors American Eagle and Aeropostale reported sales gains during the holidays, higher-priced Abercrombie & Fitch struggled. After a successful decade of setting trends with its higher-priced teen fashions, some analysts see the brand's signature styles as stale and in need of retooling. "They need to figure out what the next hot trend is and push that, because that's the only way out of this downward spiral," said Citigroup retail analyst Kimberly Greenberger.

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