Abercrombie & Fitch’s revival – From the Most Hated Retailer to America’s Top Triumph

Abercrombie & Fitch Co. (A&F) is a U.S.-based lifestyle retailer focusing on contemporary products. A&F headquarters are in Columbus and New Albany, Ohio. The company manages three offshoot brands: Abercrombie Kids, Hollister Co., and Gilly Hicks and is famous for its high-end sporting goods and supplied gear to prominent figures such as Theodore Roosevelt and Admiral Richard E. Byrd.

Abercrombie & Fitch was founded in 1892 in New York City by David T. Abercrombie as an outfitter for elite outdoorsmen.  In 1900, Ezra Fitch, a lawyer and devoted customer, bought a significant stake in the business and became the sole owner from 1907 to 1928. A&F was renamed “Abercrombie & Fitch Co.” in 1904. 

In 1988, A&F shifted its target customers to young adults. In the 1990s, the company widened its target to teens and launched Abercrombie Kids in 1998 and Hollister Co. in 2000.

Fran Horowitz became the new A&F CEO in 2017. Hence, the company started to focus more on customer service and inclusivity, moving away from its sexually charged advertising in 2015.

From the most hated retailer in America and ready to be sold off in the middle of the 2010s, A&F experienced an impressive comeback to the market in 2023. According to the NYSE: ANF’s report, the company’s shares have risen over 500 per cent in the past year, outperforming tech giants like NVIDIA and Meta. A&F annual sales have surged nearly 30 per cent since 2017, and it posted its highest profits in over a decade. Despite the US apparel market shrinking by four per cent, Abercrombie grew its sales by 16 per cent in 2023, continuing its strong performance with the record as the highest first-quarter ever in May 2024.

Abercrombie has come a long way from its declining revenues and negative reputation under former CEO Mike Jeffries, who focused on an exclusionary brand image with a narrow customer range, targeting consumers as skinny, beautiful and hot teenagers. The turnaround began in 2017 when Fran Horowitz became CEO, revamping the product to align with customers’ needs. 

A&F has significantly shifted from heavily branded clothing to a more sophisticated, comfortable style while remaining fashionable and targeting millennials. The company also broadened its merchandise selection with athletic apparel, matching sets, and dresses.

Abercrombie’s rebrand also included embracing inclusivity and diversity. In 2021, Abercrombie introduced the Curve Love Fit and extended size ranges, making the brand more accessible and appealing to wider consumers. The company also utilized TikTok influencers to market and rebrand its image. This authentic marketing strategy has resonated with consumers through different approaches, proving more effective than A&F’s traditional advertising methods. 

Operationally, Abercrombie has closed unprofitable stores and improved its supply chain, leading to an 18 per cent increase in productivity per square foot from 2019 and reduced reliance on promotions. The company has started opening more locations with different footage and designs to engage more consumers. 

As a foreseen result, Abercrombie is now seeing its highest profits in over a decade and outperforming its rivals, such as Urban Outfitters, Gap, and American Eagle.

Although Abercrombie has come a long way to its achievement, 2024 might be awaiting new challenges due to the return of the maximalism trend. Analysts remain optimistic about Abercrombie’s future, predicting continued sales and earnings growth despite its numbers being behind those in its heyday. 

“We’ve been talking about our global opportunity since June of 2022,” Fran Horowitz, Abercrombie & Fitch CEO, said in an interview with CNBC. “How we really see that as a big opportunity for us. So we’ve got localized teams building a lot of talent into London and Shanghai.”

The Company’s Strategic Focus is Localization Assortments and Appropriate Promotions in Different Metropolises Around the World. 

Retail experts foresee Abercrombie’s sustained success and remain in its position in the market further.