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Chief Executive Mike Jeffries has stirred controversy in the past by suggesting the company's clothes were made for "cool" and "attractive" kids and not for "fat" people. The company now does not offers sizes for women above large.
The retailer reported another double-digit drop in quarterly same-store sales on Tuesday and warned of a tough holiday season.
(Reporting by Siddharth Cavale in Bangalore; Editing by Maju Samuel)