Abercrombie & Fitch teams up with Asos for online sales

American teen fashion label, Abercrombie & Fitch have partnered up with

online retailer Asos, in an effort to boost the brand's image among young millennials and improve sales. It will be the first time that A&F sells its products outside its own stores, with first collections slated to launch online at Asos in time for this holiday season.

Chief Executive Officer, Mike Jefferies, announced the move during a earnings call last week, discussing A&F's first quarter financial results. “Given Asos's strong and growing traffic, this partnership will enable us to increase brand consideration and engagement with an attractive margin structure,” he said at the time.

The agreement with Asos only involved the main A&F label, however Jonathan Ramsen, company chief financial officer and chief operations officer added that it may be expanded to include other company brands. “It's A&F at this point. We may expand it to Hollister, but A&F is confirmed at this point. We're moving forward on that and Hollister we're continuing to discuss.”

However, after Asos issued a profit warning on Thursday, questions have arisen as to how this turn of events it will affect its agreement with A&F. With Asos's profit report calling into question its business model for intentional growth, the strength of the British pound causing discounting in its overseas market, and the online retailer's stock dropping 30 percent, only time can tell how this will affect A&F and its forage into third-party channel partnerships.