Abercrombie & Fitch (A&F) is an American retailer that focuses on casual wear for consumers ages 18 through 22. With over 300 locations in the United States, the brand is now expanding internationally. The company also operates three offshoot brands: abercrombie (childrenswear), Hollister Co., and Gilly Hicks. The company operated a post-grad brand, Ruehl No.925, that closed in early 2010. The official logo of Abercrombie & Fitch is the moose.
Abercrombie & Fitch (A&F) is aggressively pursuing organic growth strategy. The company seeks to invest in new concepts and plans to create iconic brands. For instance, the company is planning to launch a new brand-Concept 5 in the early 2008 in seven stores. In addition, it is striving to expand its presence in both existing and new markets through Greenfield projects. Scope Contains corporate strategy, value chain presence and SWOT Analysis Provides detailed business description, segment analysis, 5-year financial trends, key products and key competitors Includes information on suppliers/ partners, shareholding structure and key employees with biographies Highlights Abercrombie & Fitch is a retailer engaged in selling casual apparel, personal care and other accessories for men, women and children under the Abercrombie & Fitch, abercrombie, Hollister and RUEHL brands. The company operates 990 stores in the US, the District of Columbia, Canada and the UK.
Abercrombie & Fitch has adopted a global sourcing strategy that includes relationship with vendors in 37 countries and the US. A&F has two distribution centers in Ohio. The company sources its merchandise from approximately 258 factories and suppliers, primarily in Southeast Asia, and Central and South America.Abercrombie & Fitch recorded strong growth in revenues in fiscal 2007. Its revenues grew at a compound annual growth rate (CAGR) of 28% for the period 2005-2007. A&F's strong financial performance gives stability to its operations.
Expansion campaign
The Abercrombie & Fitch brand is believed to have reached its maximum growth potential in the American market. International expansion began in 2006, with the long-term goal of opening flagships for A&F (and eventually all its brands), in high-profile shopping centers worldwide "at a deliberate pace".
After delivering openings at a deliberatel slow pace, the company will accelerate international expansion for its namesake and its HCo brand. Noting the high profitability of its current international stores, Abercrombie & Fitch has plans to open about 15 flagship locations in total throughout Europe and Asia up to the end of its fiscal 2012 year. The steep number could include openings for its other brands as well. The company expects 30% of its sales to be derived from international stores by 2012.
A & F of the size distribution does not normally do XXL, boys, if more than 38-inch waist, it is difficult to wear A & F into a commodity.In other words, the only criteria is enough to be eligible to wear A & F, which is generally the United States with the most different brands. Fitch’s biggest bookmaker, is to catalog, advertising to achieve perfection, but do not intentionally store shop in the main commodities,or claim to have been sold out. “Rare” and to create, so with the net purchase of store turnover is considerable. A & F the only high-profile way Direct access point planning. The current distribution channels, in addition to the 788 stores nationwide this year in the first stores in Canada. Asian part of the question, is expected to enter the Japanese market in 2007. Abercrombie clothes interesting ideas is that he is changing almost every quarter. A & F becoming more and more popular, in fact, pricing is not cheap, called the High sportswear in the United States if found wearing a Abercrombie, can be regarded as a symbol of nobility.
Recession Problem
The clock is ticking on Abercrombie & Fitch Co.'s strategy of selling high-priced teen clothing as the recession erodes sales and profit margins, and competitors outrun it.
Abercrombie's high prices have produced 30% sales declines at stores open at least a year in each of the first two quarters.
From 2002 to 2007, Abercrombie's operating margins hovered slightly below 20%. But last year, Abercrombie's operating margin fell to 13.3% and should fall to just 3.9% this year, said Mr. Jaffe.
Future plans
After coming up from recession it started to make future planning. Total capital expenditures for 2010 was in the range of $250 million USD to $260 million USD. $215 million to $225 million is related to new stores, store refreshes and remodels, and approximately $35 million related to information technology, distribution center and other home office projects. The company is on track to open flagship stores inCopenhagen,Denmark and Fukuoka, Japan, as well as shuttering 60 of its namesake stores in the U.S., by the end of 2010 and starting of 2011. Additionally, the company will open 30 Hollister mall-based locations internationally and a second Hollister Epic flagship in New York City.
Abercrombie & Fitch (A&F) is aggressively pursuing organic growth strategy. The company seeks to invest in new concepts and plans to create iconic brands. For instance, the company is planning to launch a new brand-Concept 5 in the early 2008 in seven stores. In addition, it is striving to expand its presence in both existing and new markets through Greenfield projects. Scope Contains corporate strategy, value chain presence and SWOT Analysis Provides detailed business description, segment analysis, 5-year financial trends, key products and key competitors Includes information on suppliers/ partners, shareholding structure and key employees with biographies Highlights Abercrombie & Fitch is a retailer engaged in selling casual apparel, personal care and other accessories for men, women and children under the Abercrombie & Fitch, abercrombie, Hollister and RUEHL brands. The company operates 990 stores in the US, the District of Columbia, Canada and the UK.
Abercrombie & Fitch has adopted a global sourcing strategy that includes relationship with vendors in 37 countries and the US. A&F has two distribution centers in Ohio. The company sources its merchandise from approximately 258 factories and suppliers, primarily in Southeast Asia, and Central and South America.Abercrombie & Fitch recorded strong growth in revenues in fiscal 2007. Its revenues grew at a compound annual growth rate (CAGR) of 28% for the period 2005-2007. A&F's strong financial performance gives stability to its operations.
Expansion campaign
The Abercrombie & Fitch brand is believed to have reached its maximum growth potential in the American market. International expansion began in 2006, with the long-term goal of opening flagships for A&F (and eventually all its brands), in high-profile shopping centers worldwide "at a deliberate pace".
After delivering openings at a deliberatel slow pace, the company will accelerate international expansion for its namesake and its HCo brand. Noting the high profitability of its current international stores, Abercrombie & Fitch has plans to open about 15 flagship locations in total throughout Europe and Asia up to the end of its fiscal 2012 year. The steep number could include openings for its other brands as well. The company expects 30% of its sales to be derived from international stores by 2012.
A & F of the size distribution does not normally do XXL, boys, if more than 38-inch waist, it is difficult to wear A & F into a commodity.In other words, the only criteria is enough to be eligible to wear A & F, which is generally the United States with the most different brands. Fitch’s biggest bookmaker, is to catalog, advertising to achieve perfection, but do not intentionally store shop in the main commodities,or claim to have been sold out. “Rare” and to create, so with the net purchase of store turnover is considerable. A & F the only high-profile way Direct access point planning. The current distribution channels, in addition to the 788 stores nationwide this year in the first stores in Canada. Asian part of the question, is expected to enter the Japanese market in 2007. Abercrombie clothes interesting ideas is that he is changing almost every quarter. A & F becoming more and more popular, in fact, pricing is not cheap, called the High sportswear in the United States if found wearing a Abercrombie, can be regarded as a symbol of nobility.
Recession Problem
The clock is ticking on Abercrombie & Fitch Co.'s strategy of selling high-priced teen clothing as the recession erodes sales and profit margins, and competitors outrun it.
Abercrombie's high prices have produced 30% sales declines at stores open at least a year in each of the first two quarters.
From 2002 to 2007, Abercrombie's operating margins hovered slightly below 20%. But last year, Abercrombie's operating margin fell to 13.3% and should fall to just 3.9% this year, said Mr. Jaffe.
Future plans
After coming up from recession it started to make future planning. Total capital expenditures for 2010 was in the range of $250 million USD to $260 million USD. $215 million to $225 million is related to new stores, store refreshes and remodels, and approximately $35 million related to information technology, distribution center and other home office projects. The company is on track to open flagship stores inCopenhagen,Denmark and Fukuoka, Japan, as well as shuttering 60 of its namesake stores in the U.S., by the end of 2010 and starting of 2011. Additionally, the company will open 30 Hollister mall-based locations internationally and a second Hollister Epic flagship in New York City.