A&F stands by controversial CEO while Lululemon's chairman resigns

Main international markets closed lower Tuesday, with the S&P 500

losing its Monday record of 1,808.37. Asian benchmark indexes Nikkei 225 and Hong Kong's Hang Seng ended down as well as top European indexes.

Meanwile, Abercrombie & Fitch Co has not paid attention to analysts criticism against Mike Jeffries and confirm him in the top position. The controversial CEO will keep his position at least for another year after his current contract expires in February.

The renewal of Jeffries´contract comes just one week after activist investor Engaged Capital, which owns 1 percent of the retailer, wrote a public letter urging Abercrombie to let Jeffries go. Engaged Capital considers Jeffries the direct responsible for seven straight quarters of same-store sales declines.

"Investors have endured poor performance due to poor leadership," wrote Engaged founder Glenn W. Welling. "The company's management team has a reputation for habitually under-estimating and under-executing on the changes needed to remain competitive in the fast moving teen apparel market."

It´s noteworthy that the company's stock is down 25 percent this year, shredding 77 cents to a 34.10 dollars close on Monday. Analysts have flagged that Abercrombie & Fitch has lost touch with current trends in recent years, losing market share to the likes of H&M and Forever 21.

More changes as Lululemon´s founder and chairman will be resigning as per the statement the company issued Tuesday. Chip Wilson will resign prior to the company's annual meeting next June and be replaced by Michael Casey, the lead director of the board. In addition to his resignation, the board of directors at Lululemon said it has appointed Laurent Potdevin as the new CEO to succeed Christine Day, who was CEO since 2008 and announced her intention to resign in June.

Lululemon is expected to release its latest quarterly results on Thursday.