Abercrombie & Fitch Company Financial Analysis

Abercrombie And Fitch Company Financial Analysis
Brandon Gooden Abercrombie & Fitch Company Financial Analysis Finance 504 Professor Kramer
August 30, 2017 Investments to Support the Business Unit Strategy or Strategies Abercrombie and
Fitch and subsidiary brands: Abercrombie Kids, Hollister, and Gilly Hicks, have mastered the basics
of image priority and sex appeal in the retail industry. In earlier years, and still perceived by
consumers, ANF has been known for its controversial print advertisements and attractive logo,
which ANF used as a sells pitch. ANF and subsidiary brands are known to cater to fit and attractive
consumers that leaves opportunity for growth. ANF logo is attractive to consumers, in turn has
increased sales, but with fashion–forward retailer ... Show more content on Helpwriting.net ...
ANF price earnings ratio is currently 51.45%. For the next 3 year the sales forecast for COGS is
predicted to increase by 10%. Future Profitability and Competitive Performance Evaluating ANF
historical trends influences investor interest in the company. ANF shares increased 43.22% over the
previous month equaling a per share value of 14.06%. The stock rose to 11.86% over the past
quarter, while increasing 20.7% over the past six months. The company's volatility monthly is
4.04%. Abercrombie and Fitch is looking to generate more than $818.66 million for the current
quarter with already experience earning $843.13 same time last year. Growth ANF's historical data
displays a –4.4% annual rate of revenues over the past 5 years. In the recent quarter ANF has
generated an unattractive attribute by decreasing –3.6% in revenues. Compare Profitability ANF's
net profit margin –0.44% for 12–month period. Compared to peers 38% and sectors 12.4% averages.
ANF is in a weak position to its peers and sector. Although stock prices hit a low in April 2017 to
$10.50, a 38% increase has occurred in stock price. Even though ANF has increased their stock
price the company is not in a strong position. Shares are still does to the 52–week high ($23.29) by –
47.53%. Competitive Strategy In the future ANF is looking to consolidate it locations in the United
States, due to the weak economic environment in Europe, ANF is focusing on controlling its
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Essay on Abercrombie and Fitch, Strategic Managment
Table of Contents
INTRODUCTION 3
ABERCROMBIE AND FITCH 4
Pest Analysis of A&F 4
1. Political Factors 4
2. Economic Factors 5
3. Sociological Factors 5
4. Technological Factors 6
Michael Porter's Five Force Framework 6
1. Threat of New Entrants 6
2. Substitutes 7
3. Threat of Bargain Power of Supplier 7
4. Bargain Power of Buyers 7
5. Rivalry 8
SWOT Analysis A&F 8
CONCLUSION 9
REFERENCES 10
INTRODUCTION
Every business in the world has to look for different strategies that will help it to improve and raise
more profits. This has become in the ultimate goal in any organisation and it only becomes a reality
if the best technique and methods are used. For this, there are some analyses that at the same time
need to be ... Show more content on Helpwriting.net ...
In here, it is fundamental to see what is happening in the social part of the market in which the firm
is operating, or when it is a new business or a new project, the market in which it is desired to enter.
Moreover, there are such things like the cultural norms, expectations and behaviours, population,
age, etc (CIPD, 2010). Abercrombie and Fitch has always pronounce that one of the most important
things in its marketing is diversity. They try to include every type of people in their teams for
example. In its webpage (Abercrombie and Fitch, 2010) people can find this data:
In–store workforce, as a whole is 50.22% people of colour
In–store models are 48.44% people of colour

In–store managers–in–training are 41.04% people of colour
Technological Factors
This is one of the clues to gain competitive advantage in any industry (Porter, 1998). According to
this, any change in technology that can have an impact in the way things are done, can be a
significant improvement. This will lead to better products and services (CIPD, 2010). Abercrombie
and Fitch has taken advantage of the internet to offer different services to its customers. All
catalogues can be found there, and all the locations of their stores as well. For its staff, recently was
created a webpage for them to

Uniform Lawsuit: The Case Of Abercrombie And Fitch
3.1. Company Overview
Abercrombie & Fitch was founded in 1893. It operates as a specialist retailer of casual apparel. The
company sells products ranging from knit and woven shirts to jeans for men and women. Kidswear
can also be bought at Abercrombie kids. The company targets different consumers from 7 to 22
years old. The company is operated worldwide. As of March 2, 2016, it operates in 754 stores in the
United States; and 178 stores in Canada, Europe, Asia and the Middle East.
3.2. Case Discussion:
During an interview conducted in Apr 2013, Mike Jeffery, from the Chief Executive Office of the
renowned clothing brand was asked a question regarding the fact that A&F (shortened version of
Abercrombie & Fitch) refuses to sell products over a women's size 10. He answered:(Sozzi, 2014)
"In every school, there are the cool and popular kids, ... Show more content on Helpwriting.net ...
It is unethical for Mike to make an such a comment, that is on his standards but it is very
inappropriate for social standard. The reason so, they did not want their products to be worn by the
homeless as Jeffries commented that A&F only go after "the cool kids".
3.2.1. Uniform Lawsuit
In 2002, several A&F employees filed a lawsuit against A&F in regards to the company forcing
employees to purchase and wear the company's clothing at work. In a settlement; A&F agreed to pay
$2.2M to 11,000 workers employed from Jan 1999 to Feb 2002. The settlement stays until today.
Now, Employees at A&F are required to wear clothing that reflects the look of the company.
3.2.2. Asian Boycott
Early 2002, A&F presented printed t–shirt, which many Asian Americans claimed to be racist.
Particularly, the shirt had a cartoon drawing of two Asian men with a statement of "Wong Brothers
Laundry Service. Two Wongs Can Make It White". It led to many Asian Americans refusal to
purchase A&F

Marketing Strategy Of Superdry / Supergroup Plc
The purpose of this essay is to analyse the current competitiveness and marketing strategy of
Superdry/Supergroup PLC. Then investigate positive future avenues the company could take to
increase growth, market share and sustainability in the retail clothing market. Currently Superdry
have seen a huge increase in growth since they were listed on the stock exchange in 2010. Sales
have increased by 329%, profit before tax has increased by 173% and amongst other increases they
have seen a massive surge in e–commerce net revenue growing exponentially by 1586%
(Supergroup, 2016). In a SWOT analysis carried out by Marketline (2016), they highlight how
successful the company's strengths and opportunities are with their multi–channel business, strong
financial performance and global penetration all leading them in the right direction. In addition to
the continued performance success Superdry have three principle goals set in place. Firstly, they
want to build a lifestyle brand, secondly, drive awareness and breadth of the Superdry range, and
thirdly, build a broader cross channel relationship with their customers (SuperGroup, 2016). It's
these three goals that will be used to formulate this essays future recommendations for the company,
aiming to help keep the business moving in the same direction as it already is, increase its
competitive advantage, and build on its solid brand platform by assessing the potential of entering
into a new market. As previously mentioned, Superdrys

A and F
Abercrombie & Fitch
ABERCROMBIE & FITCH CASE STUDY
COMPANY PROFILE Abercrombie & Fitch Co. is a leading specialty retailer encompassing three
concepts Abercrombie & Fitch, Abercrombie, and Hollister Co. The company focuses on providing
high–quality merchandise that compliments the casual classic American lifestyle. The merchandise
is sold in retail stores throughout the United States and through catalogs. The company also operates
an e–commerce website at www.abercrombie.com, a kids website at www.abercrombiekids.com,
and publishes a magalog called the A&F Quarterly. Abercrombie & Fitch, which targets ages 18
through college, went public in October 1996 and spun–off from The Limited in May 1998.
abercrombie kids (ages 7 – 14) was ... Show more content on Helpwriting.net ...
However, resolving the orders manually was a cumbersome task. "It was a challenge for us to work
with the standard reports to resolve these issues with the work force we have available to us in the
direct side of the business," said Trilling. "We were able to create a workflow application using the
data contained within CWData, and this allowed us to respond to these issues in an efficient and
cost–effective manner." Leveraging CWData's unique functionality to extract only new and changed
data to the CWData database, Trilling created a Lotus Notes application that accesses the CWData
database to find all the orders that have gone on hold. Once the orders are accessed, the application
sends an e–mail to the customer and, using the workflow capability within Notes, adds it to a CSR's
work queue. The application then accesses the CWData database to see if the order has gone off
hold,
"CommercialWare's CWData solution allows us to maximize our offerings and provides us with a
more accurate understanding of overall sales activity across the direct side of the business," –Todd
Trilling, Director of Catalog Systems
and then resolves the issue. In this way, the majority of held orders can be resolved without any
manual effort. Abercrombie went live with CWData one month after their August 2001 CWDirect
launch. Abercrombie kids was launched first with adults following six months later.

Abercrombie And Fitch Essay
The main issue of the article is that the company, Abercrombie and Fitch, is no longer a popular
trend and it declining rapidly in sales. One of the main reasons is the CEO of the company, Mike
Jeffries. Mike Jeffries has his own unique style of representing the company's product; this style is
not in favor of any business ethics, thus causing the sales of Abercrombie and Fitch to decline. Mike
Jeffries has put Abercrombie and Fitch into an image whereby only someone who has a masculine
figure or is good–looking can buy. People who are fat or ugly do not belong in the circle of
Abercrombie and Fitch. This has certainly offended many people around the world, thus causing the
popularity and reputation of Abercrombie and Fitch to drop. We had also found another article to
support the business ethics of Abercrombie and Fitch. It is said that Abercrombie and Fitch do not
have clothing's that is larger than large size, this proved that the company's range of customers only
apply to those who are not that fat. People who wear larger than large size are seemingly not
allowed to wear an Abercrombie and Fitch product. Most people will not agree with the way
Abercrombie and Fitch sells their apparels, it is deemed to have a poor business ethic. ... Show more
content on Helpwriting.net ...
Individualism is very important for the company as it strives to give each customer's their best
potential to stand out. However, Mike Jeffries, the CEO of Abercrombie and Fitch, portrayed this
company to an image whereby not everyone can belong to customers of Abercrombie and Fitch, this
is a very selfish way of doing business as it will make some people feel inferior about themselves.
Mike Jeffries is not following the concept behind individualism, thus causing Abercrombie and
Fitch a have a major decline in

Promoting Brand Loyalty at Abercrombie & Fitch
Promoting Brand Loyalty at Abercrombie & Fitch ch.6
Abercrombie and Fitch is an American retailer that focuses on casual wear for consumers aged 18 to
22. It has over 300 locations in the United States, and is expanding internationally. The company
also operates three offshoot brands: Abercrombie, Hollister Co., and Gilly Hicks. The company
operated a post–collegiate brand, Ruehl No.925, that closed in early 2010.
The company operates 1,073 stores across all four brands. The A&F brand has 316 locations in
the United States, four in Canada, one in London, one in Milan, one in Tokyo, one in Copenhagen,
one in Madrid, one in Paris, one in Brussels, one in Dublin, and one in Hong Kong. A&F stores
range from 6,000 to ... Show more content on Helpwriting.net ...
Net income from continuing operations was $79.0 million and net income per diluted share from
continuing operations was $0.89 in Fiscal 2009, compared to net income from continuing operations
of $308.2 million and net income per diluted share from continuing operations of $3.45 in Fiscal
2008. Net income per diluted share from continuing operations included non–cash, store–related
asset impairment charges of $0.23 and $0.06 for Fiscal 2009 and Fiscal 2008, respectively. Net cash
provided by operating activities, the Company's primary source of liquidity, was $402.2 million for
Fiscal 2009. This source of cash was primarily driven by results from operations adjusted for non–
cash items including depreciation and amortization and impairment charges. The Company used
$175.5 million of cash for capital expenditures and had proceeds from the sale of marketable
securities of $77.5 million during Fiscal 2009.
The Company's Market Share may be Adversely Impacted at any Time by a Significant Number of
Competitors. The sale of apparel and personal care products is a highly competitive business with
numerous participants, including individual and chain fashion specialty stores, as well as regional
and national department stores. The Company faces a variety of competitive challenges, including
maintaining favorable brand recognition and effectively marketing its products to consumers in
several diverse demographic markets. And sourcing merchandise

Acc501
Trident University International
ACC501: Introduction to Financial Accounting
Module 1 Case Assignment
For investors to objectively analyze and rate companies they need to have access to certain financial
information in order to make informed business decisions. Key financial figures such as Statement
of Income, Balance Sheet Statements, and Cash Flow Statements are used to make these
comparisons. To ensure that companies are reporting the same financial information several
accounting and auditing standards have been created and must be followed. In the follow paper two
companies, Abercrombie and Fitch and Hennes & Mauritz, will be evaluated based on their
financial statements in a goal to determine which company is more ... Show more content on
Helpwriting.net ...
A&F on the other hand was strictly financial based and to the point with a total of only seven
pages. The accounting and auditing standards used to generate the reports also differed. H&M
used International Financial Reporting Standard (IFRS) as adopted by the European Union (EU) and
was prepared in accordance with IAS 34 Interim Financial Reporting as well as the Swedish Annual
Accounts Act (H&M, 2012). A&F utilized the United States Generally Accepted
Accounting Principles (GAAP) along with non–GAAP financial measures and audited with
Generally Accepted Auditing Standards (GAAS).
Explaining the Difference in Profitability between the Two Companies Based on the 2011 annual
financial report from H&M, it indicates there are 2,472 stores in 32 different countries
compared to AF which only has 1045, of which 946 of them are in the United States. In terms of
profitability H&M is able to stay more profitable because it is operating stores in several
different markets and is able to perform better during economic financial downturn in certain
countries by bolster sales in markets which aren't being impacted as badly. A&F on the other
hand essentially has all its "eggs in one basket" with a majority of its stores in the United States, so
if the economy is doing poor or tax laws change it can severely impact the company's profitability.
The following section will explore the financial formulas used to determine why I believe
H&M

Abercrombie & Fitch Co., also known as A&F, was founded in...
Abercrombie & Fitch Co., also known as A&F, was founded in 1892 by David Abercrombie and
Ezra Fitch. Its headquarter is located in New Albany, Ohio. May be nobody knew that this apparel
retailer was from its beginning a kind of elite outfitter of expensive sporting and excursion goods.
The company, with more than two hundred subsidiaries around the world, sells casual apparel for
men, women, and kids.
The company retails different products such as casual sportswear apparel woven shirts, graphic T–
shirts, shorts, sweaters, jeans and woven pants, outerwear, and accessories for its main target among
the A&F, Abercrombie kids, and Hollister brands. Thanks to its advertising, its benevolence, and
contribution in legal conflicts of clothing ... Show more content on Helpwriting.net ...
However, Alibaba is another option and might motivate many American customers to learn about
the Chinese company. For Abercrombie & Fitch, this means a lot more competition online.
Nevertheless, it could be even harder to survive online than in shopping malls.
When it came to 2013 revenue, Abercrombie & Fitch faced a 9% year–over–year drop, while
Aeropostale fell 12%. Abercrombie & Fitch saw its net income fall 58%, while Aeropostale had a
net loss difference of $69,629,000 from the same quarter of both fiscal years 2012 to 2013. In 2014,
retailers seem to have unexpected deliveries within their products. This year, A&F had good profit
after several quarters without doing so. Its shares have gained 25%, however, this huge gain did not
come from improving industry trends. Such increment happened after improving sales plus the
announcement that it would introduce lower price points to compete with low–cost teen apparel
retailers efficiently, such as H&M, Forever 21, and UNIQLO.
Even though it has experienced hard competition with other companies that sell low–cost teen
apparel, Abercrombie has avoid industry changes on its price points as its pricing power can
decrease and thereby eliminate its 'dignity' on the eyes of its customers. It's not a surprise because
customers assign more quality to expensive products. This has affected its unit volumes as well as
excessive inventory ranks with

Abercrombie & Fitch
Abercrombie & Fitch Co. ("A&F") a specialty retailer operates stores and direct –to–consumer
operations through its subsidiaries. Incorporated in Delaware in 1996, Abercrombie & Fitch Co.
under the Abercrombie & Fitch, Abercrombie kids, and Hollister brands sells: casual sportswear
apparel, including knit and woven shirts, graphic t–shirts, fleece, jeans and woven pants, shorts,
sweaters, and outerwear; personal care products; and accessories for men, women and kids. The
Company also operates stores and direct–to–consumer operations offering bras, underwear, personal
care products, sleepwear, and at–home products for women under the Gilly Hicks brand. A&F
operates over thousand stores in North America, Europe and Japan. ... Show more content on
Helpwriting.net ...
Company's return on assets (ROA) indicates what earnings were generated from invested capital
(assets). Abercrombie & Fitch's ROA, Return on Average Stockholders ' Equity, Comparable Store
Sales increased respectively in 2010 from 0% to 5%, 0% to 8% and –23% to 7% compared to the
previous year. The current ratio on the other hand decreased from 2.73 to 2.5. Despite the decrease
of its current ratio, Abercrombie & Fitch presents a high current ratio which is a good indicator of its
ability to meet its short–term obligation. Gross profit during Fiscal 2010 was $2.212 billion
compared to $1.884 billion during Fiscal 2009. The company's ROA shows that the business
utilizing efficiently its assets. Abercrombie & Fitch presents gross profit margin of 64% and 63.8%
for respectively 2009 and 2010 which indicates that the company has a gross income of $0.64 and
$0.63 for each dollar of sales. A&F high profit margin indicates that they are a more profitable
company that has better control over its costs compared to its competitors where the average gross
profit margin is 48.46% in 2009 according to Butler Consultants. The retail clothing industry had an
average gross profit margin of 48.46 percent in 2009 according to Butler Consultants. The decrease
in the gross profit rate for Fiscal 2010 was primarily driven by a 9% decrease in average unit retail,
which was partially offset by a

Abercrombie And Fitch : Swot Analysis
INTRODUCTION
Abercrombie and Fitch is a well known retailer of casual clothing with over 300 stores in America
and 170 stores worldwide. It was founded in 1982 by David T Abercrombie and Ezra H Fitch. After
being owned by the fashion firm 'The Limited' in 1999, the brand went public on the New York
Stock exchange.
Currently, Abercrombie and Fitch sells jeans, graphic t shirts, shorts, knit and woven shirts,
outerwear etc under the brand names of Abercrombie and Fitch, Abercrombie kids and Hollister.
The main competitors of the brand include 'Aeropostale', 'American Eagle outfitters 77 kids 'and The
Gap Inc. According to a survey by the 'Teenage Research Unlimited', Abercrombie and Fitch was
regarded as the 6th coolest brand by the American kids (Perman/Reynoldsburg, 2000).
Following are the SWOT and PEST analysis of Abercrombie and Fitch.
SWOT ANALYSIS
Strengths:
A great digital experience makes of breaks the firm as reflected by the Forrester Research (Sparrow,
2014). Thus a great strength of Abercrombie and Fitch is being a direct to customer business,
operating through 22 websites in 10 different languages, shipping to 120 different countries. In
2014, the direct to customer operations represented 22% of the total net revenue (ANF annual
report, 2014).
At the end of 2014, the company operated through 969 retail stores worldwide (Appendix A),
increasing global recognition and future growth prospects (ANF annual report, 2014).
Abercrombie and Fitch products

Case Statement: Case Development: Abercrombie And Fitch
Case Development
Abercrombie & Fitch
Abercrombie & Fitch (F&A) is an American specialty retailer of upscale casual apparel. It was
founded by David T. Abercrombie and Ezra H. Fitch in New York City in year 1892. In year 2002, it
moves to the new headquarters in New Albany, Ohio. (Advameg Inc., 2017) It holds three unique
lifestyle brands which are Abercrombie & Fitch, Abercrombie Kids, and Hollister Co. It engages in
the retailing of casual sportswear apparel, graphic t–shirts, jeans and woven pants, shorts, sweaters
and outerwear, personal care products, and accessories ("Abercrombie & Fitch Co, ANF: NYQ
profile – FT.com," 2016)Youth market is targeted, but men and women of all ages like it due to its
portrayal of youth. (Bhasin, 2016)In order ... Show more content on Helpwriting.net ...
Abercrombie & Fitch filed by nine young adults of color who accused that Abercrombie
discriminates against African–American, Latino and Asian American applicants and employees.
They alleged Abercrombie refused to hire qualified minority applicants to work on the sales floor
while discouraging applications from minority candidates. The minority applicants only had given
the chance to get low–visibility, back–of–the–store jobs, stocking and cleaning up. The purpose of
suit is asked the court order Abercrombie & Fitch to stop its discriminatory policies and practices,
award the plaintiffs and class members back pay and monetary damages. (NAACP Legal Defense
and Educational Fund, Inc., 2003)The result of this suit is that A&F had to pay $40 million for
rejected applicants and employees who had sued the company for racial discrimination.
Furthermore, the settlement requires Abercrombie to increase diversity in hiring and promotions, as
well as advertisements and catalogs, stop specializing in predominantly white fraternities and
sororities in its recruitment. (Greenhouse,

A&F Case
III. Executive Summary Abercrombie & Fitch is one of the most famous apparel retail industry that
have done a wonderful job to stay in the market position despite the changing trends and lifestyles
that generations have nowadays. It's hard to keep intact with fashion trends because once you cannot
cope up with the changing lifestyle of your consumers, you can expect to have a decrease in your
sales and market share in other countries. The industry offers a lot of new and existing potential
competitors especially in the fashion industry; you're not just competing within the U.S. brands but
also with European brands that are getting popular in all over the world. They are also products that
can substitute with branded apparel, some ... Show more content on Helpwriting.net ...
3. Political and Legal Issues Abercrombie & Fitch is one of the most famous retail chains that have
done a wonderful job of appealing to fashion conscious teens and college students. Based on a
recent survey, Abercrombie & Fitch was shown to be the sixth coolest brand in the world. But
despite being successful in the industry they also have a lot of negative issues surrounding the
clothing brand. Abercrombie & Fitch has remained uncompetitive since the recession hit in 2007
and its shares have fallen more than 33 percent this year, but the financials aren't the only thing that
disappoints the people, there are still a lot more of issues. In 2004, the clothing brand has faced a
number of lawsuits over discriminatory hiring. Eduardo Gonzales, a lead plaintiff said he was urged
to apply for an overnight stock position and that the store manager favoured two white applicants in
a group interview. The clothing brand was also under fire for producing its catalogue "the quarterly",
which was called soft core porn by many groups because of its erotic photographs along with a
sexual advice from a renowned porn star. The National Coalition for the Protection of Children and
Families, and Focus on the Family both

Why Do Abercrombie's Companies Continue To Promote Diversity?
This is a difficult question. Was changing their entire market strategy and including a new mission
statement merely a rouse to increase profits after an embarrassing lawsuit or truly a desire to
earnestly promote diversity? We can only speculate on this. However, the cold facts are that 50% of
Abercrombie's store associates are people of color, 75% of their Executive Vice Presidents are
female, they have been listed for ten consecutive years as one of the best places to work for LGBT
employees, and they have donated over $110,000 in diversity scholarships. In addition, their new
catalogues are incredibly diverse and no longer adhere to one body type or racial profile. So,
regardless of their motive, Abercrombie has definitely taken huge precautions

The Target Is You: An Analysis of Hollister's Marketing...
The Target Is You: Hollister
Executive Summary
The aim of this paper is to provide an insight into Hollister Co.'s marketing communications and
assess whether it successfully targets my demographic of young, male recent college graduates. The
paper will first introduce Hollister and provide a brief company history as well as outlining the
challenges in reaching out to consumers such as myself who differ from the brand's intended targets.
It will then segue to discussing Hollister's position within the market and any outlying challenges
the brand has navigated through.
Characteristics such as income, age, behaviors, emotions, occupation, and location will be addressed
as they pertain to the company's target audience. The paper will then ... Show more content on
Helpwriting.net ...
Geographically, Hollister attracts individuals who live in both urban areas (such as myself) but also
in suburban areas that have close access to malls or similar large shopping centers. The audience
most likely to buy Hollister products is typically popular, good–looking, and seeking to make a
fashion statement since the brand prominently features its name on its apparel. In terms of
behaviors, Hollister consumers shop together in groups and tend to dress similarly. I differ from
these psychographic and behavioral breakdowns because I prefer to purchase clothes alone without
any input from friends. I am also less reliant on fashion trends and prefer to define my own style.
As alternatives to Hollister, customers likely consider brands located in the surrounding areas such
as American Eagle, Forever 21 or Urban Outfitters. The choice to purchase Hollister, however,
involves buying into the company philosophy and history. Hollister, similar to other Abercrombie
subsidiaries, devised a fictional company history to aid in its credibility and marketing. Abercrombie
designed a character, John Hollister, who founded the company in Southern California in 1922 after
years of travelling the world. The brand also positioned itself as a sponsor of surfing contests and
events in seaside California cities such as Santa Cruz and Huntington Beach. While these creative
concepts remained fictitious, they became powerful assets in

Current Trends Of The Apparel And Retail Industry
Current Industry Trend The overall apparel and retail industry appears to be growing strongly even
though a closer looks reveals that there are specific sectors that are doing better than the others.
According to a research published by the Harris Poll, retailers seem to have a more positive outlook
on the economy especially when it is close to holiday season. "Cautiously optimistic outlook for
current and future finances" is a term used in the research (1), as more retailers are willing to
describe their financial situation as healthy and they expect increase in total sales to be significant
from the last year. According to a recently released Nielsen Global Consumer Confidence Trend
Tracker, similar optimism was also reported as retailers in North America continue to remain
hopeful that their retail businesses will continue to thrive. (4). The retail industry as a whole has
been growing strong as opposed to wholesale. Apparel sales are not only profitable but also very
seasonal, allows for seasonal surges and promotional opportunities for more sales during certain
seasons and the holiday times. More specific to our company, Abercrombie and Fitch is situated in
the apparel industry with brands named Abercrombie and Fitch, Abercrombie Kids and Hollister.
The apparel industry has been faced with somewhat of a slump because of the economic downturn.
However, according to a very recent report on WWD, the apparel industry is now on an upswing,
seeming a financial comeback after

Abercrombie & Fitch, The Upscale Clothing Retailer Essay
Abercrombie & Fitch, the upscale clothing retailer known for its attractive sales assistant's and
models used for stores and advertisements has a long history of racism and sexism. Starting back in
2002, the company sold shirts that were racially insensitive to Asians, marketed thongs with sexual
phrases on them to pre–teens, and made men shirts that read "Female students needed for sexual
research." These products were soon removed after they caused controversy among parents and
young women. The company then faced charges that its branding and hiring practices are
discriminatory. Their stores allow white people to work in the front while Asians, and African
Americans work in the back. The company has been sued numerous times for for religious
discrimination and discrimination against handicapped customers. Abercrombie & Fitch also doesnt
stock womens pants above size 10, limiting their market to only slim and petite women.
The legal issue in this case is that Abercrombie & Fitch refused to hire potential employees based on
appearances. The ethical issues in this case are that Abercrombie & Fitch has a specific "look" that it
wants its customers and employees to have and if they don 't have that "look" then they are
"excluded". While it is legal for companies to have a dress code, they cannot discriminate against
others based upon looks. Abercrombie & Fitch "look policy" went as far as dictating fingernail
length, and hair color. Attorneys Bill Lee and Tom Saenz coordinated

Essay on Abercrombie & Fitch Case Study
Abercrombie & Fitch Case Study
Abercrombie & Fitch is one of the leading clothing companies in the world. They manufacture
and sell apparel that target the 18–24 year old demographic who represent the "All–American
Look." Many people argue about the definition of what is "All–American," since the United
States continues to evolve and include many different cultures and races. Abercrombie & Fitch
has been successful for over 100 years, but recently has come under constant scrutiny about its
hiring practices.
Company Overview
Abercrombie & Co. was founded by David Abercrombie on June 4, 1892. In 1900, Ezra Fitch
joined the company and it then became known as Abercrombie & Fitch. Since the very ... Show
more content on Helpwriting.net ...
What did the company do to change its policies? Did they change
their definition of "All–American?" Do they still enforce the new diversity policies in their stores
today? Abercrombie & Fitch continues to operate and successfully sell their apparel in the
United States and around the world.
Situation Overview
In June 2003, Eduardo Gonzalez, along with several other African American, Hispanic, and
Asian former Abercrombie & Fitch employees, filed a class action lawsuit against the company
for racial discrimination. The former "brand representatives" felt that the company assigned

them specific tasks and areas to work in based on their ethnicity.
The lawsuit, Gonzalez v. Abercrombie & Fitch was originally filed in U.S. District Court in San
Francisco in June 2003 by the Mexican American Legal Defense and Educational Fund
(MALDEF), the NAACP Legal Defense and Educational Fund, Asian Pacific American Legal
Center and the law firm of Lieff, Cabraser, Heimann, & Bernstein, LLP. The suit was
consolidated with other cases charging employment discrimination against women and
minorities filed by the Equal Employment Opportunity Commission (EEOC), the law firm of
Minami, Lew, & Tamaki, LLP., and the law firm of Kohn, Swift & Graf, P.C.
Even with overwhelming evidence being present and several employees coming forward to attest
to

Essay on Business Analysis: Abercrombie and Fitch
Being an upscale industry, Abercrombie and Fitch would appear to be a successful corporation.
Although the company was once successful for a number of years, it's apparent that there has been a
significant decline in its overall appeal and how much revenue the company acquires each year.
With just over 1,000 retail stores in the U.S., Canada, and Europe, Abercrombie and Fitch has
thrived to be one of the most avid corporate extensions. While the company may be seeing the start
to its decline, past years are proof that Abercrombie and Fitch have made a good name for
themselves. How does the industry operate one might ask? There are many sides to the coin when it
comes to determining how this company functions, but let's start with its ... Show more content on
Helpwriting.net ...
There are four divisions under Abercrombie and Fitch: AbercrombieKids (for younger kids),
Hollister (for teenagers), Gilly Hicks (loungewear for women) and RUEHL. These are considered
"divisions" because unlike subsidiaries they do not operate on their own, but just act as branches
under the demand of the main industry. Although the industry operates all year round, Abercrombie
and Fitch has two main seasons in which they bring in the highest percentage of sales; fall and
spring. One of the industries main weaknesses is the fact that they have a low industry ratio.
Furthermore, one of their issues in past years was being geographically impotent in their retail
locations, but as mentioned before, this issue is declining due to the fact that more locations are
being opened worldwide. In effort to bring in consumers, Abercrombie and Fitch uses indirect
strategies to attract and persuade its customers. Large wall photos, uplifting techno songs, and
dimmed lighting make for a relaxing ambiance to draw in its buyers. Apart from its in–store
attractions, Abercrombie and Fitch use commercial advertising, e–posts, and online music to bring
in its consumers. With all of these unique strategies, the Abercrombie and Fitch industry has been
proven successful for over 100 years. The outlook for growth is risky considering this company is
very volatile, but if corrections are made to better the industry (i.e. expand

Analysis Report
Abercrombie & Fitch
ANALYSIS REPORT
Fundamentals Of Retail Design
Group 03
Erik, Herr | I–Chu, Liao | Karan, Shah
Kuan–Ling, Tseng | Chen–Hua, Wang
ABSTRACT
This report intends to analyze the unique brand values, the distinct marketing strategies and the
compelling competitive dynamics of Abercrombie & Fitch (A&F), the noted American retailer of
casual luxury wear. The purpose of this analysis being to understand the context and motives that
drive brand A&F; to draw insights from it's past and current strategies and use these to launch a,
new sneaker offer' within it's existing product ensemble.
For doing this, we've researched the story of the brand; it's original and potential target market, it's
financial ... Show more content on Helpwriting.net ...
– 11.79),
A&F's P/E ratio is staggeringly higher. This is a strong sign that A&F is well positioned to thrive in
the current environment. TARGET MARKET
There are some major variables that might be used in segmenting consumer markets. Here, we look
at the major geographic, demographic, psychographic, and behavioral variables. Below, you can see
the target market of A&F.
Geographic: U.S.A, Canada, England, Spain,
Denmark, Italy, Germany, France, Hong Kong,
Singapore, Japan
Demographic: Age 15–28
Psychographic:
Personality – Extrovert, Stylish
Social class – Upper middles, Lower uppers,
Upper uppers
Behavioral:
Benefits – Show–off, being popular, being sexier
Attitude toward product – Positive, sexual attractive,
American lifestyle
Not many companies use mass marketing these days.

Instead, they practice target marketing by identifying market segments, selecting one or more of
them, and developing products and marketing mixes tailored for each. A&F is a successful brand
that targets the
A&F, Analysis Report
young generation market precisely.
Based on our survey, A&F has achieved phenomenal success by portraying a brand image that
comprises a series of very attractive imagery. Teenagers see a lot of this imagery through
advertisements; however, what influences them most is their peers (Goodman &
Dretzin, 1999). They are also known to buy into advertising/brand promises of what products may

Marketing Assignment Anf
Abercrombie & Fitch
Marketing Assignment
Executive Summary Established in 1892, Abercrombie & Fitch marketing strategy has always
been to target those between the ages of 18 and 22. A&F's gross sales have been $539 million
in 2008; however sales have dropped by 5% from the previous year due to the recession. In order for
sales to improve our marketing consulting team has developed an internal analysis, which identifies,
assesses, predicts, and accommodates the human resources, technology, finances and operations that
A&F possesses. The internal analysis explains how these possessions, which have helped the
organization until present time, can be used to help increase sales during this recession.
Furthermore, the ... Show more content on Helpwriting.net ...
This accounts for an estimated 30% of total teen retail sales (Fayt, 2009).
Predict: Since consumers have less income due to the recession, and there is less demand,
consumers will look for discounts in order to continue to buy products. Since A&F has decided
to keep its prices steady, they may lose consumers and as result will have large financial losses.
Accommodate: A&F has lost too much in lost revenues due to its reluctance to give consumers
discounts so A&F will have to soon start giving small discounts to consumers if it wants to
maintain the amount of consumers it has and not have any large financial losses.
Human Resources
Identify: A&F tends to hire employees that "fit its brand". These types of employees however,
tend to be college students who are young, attractive, white, male, and preppie (Avery, Crain, 2007).
Assess: A&F hires these employees since they feel they fit their brand image well and will help
sell the product better. However, those who apply and are of an ethnic minority or who are female
may be discriminated against.
Predict: This sort of discriminatory selection puts A&F at risk of a lawsuit for violating
antidiscrimination laws. If A&F does end up facing a lawsuit, it could hurt its reputation and
cause it to lose consumer support.
Accommodate: If A&F

Going For The Look
Kailey Jimenez English IV Mrs. Gilbert, Per 3 10 January, 2017 Going for the Look A considerable
problem in today society is discrimination. Whether it's based upon race, age, sexuality, or even
looks, discrimination is a serious dilemma. Marshal Cohen, a senior industry analyst with the NPD
Group, believes that hiring people who are "walking billboards" is critical and essential to a
company's success. The companies who hire based on looks, fail to realize that there are shoppers
who do not care about the appearance of the store employees, just as long as they are receiving good
customer service. People cannot completely control their appearance and brands like Abercrombie
and Fitch, Hollister, and American Apparel should take notice to that. ... Show more content on
Helpwriting.net ...
It's really important to create an environment that's enticing to the community, particularly with the
younger, fashionable market. Cohen may be right when he says that it is important to create an
enticing environment, however some people believe that the way he is going about this is wrong. It
is possible to create an enticing environment with friendly people who don't have outstanding looks.
Today's society has shown that people aspire to be gorgeous and idolize the beautiful, but they relate
more to people who look just like them. If someone were to walk into Hollister and see someone
who looks like them rocking an outfit that they typically wouldn't wear, they are more likely to be
inspired to try out the stores products. Stephen J. Roppolo, a New Orleans lawyer, tells employers
that their focus needs to be hiring people who can get the job done because when companies want to
"hire to project a certain image, things can get screwy." I have seen some first hand examples of
questionable hiring methods. Many of the stores in the mall near my home are excellent examples of
hiring based on appearance over caliber. In numerous stores, I have noticed that the employees who
work towards the front of the stores are usually Caucasian and outstandingly beautiful, and the
employees towards the back of the stores tend to be of more latin descent. I have had multiple
friends

Comparing Abercrombie And Fitch, Forever 21, American...
Social Marketing
Of the hundreds of named brand clothing that form part of the retail and fashion industry I chose to
compare, for my analysis, Abercrombie & Fitch, Forever 21, American Eagle, and H&M. These
stores are prominent, well–known for selling apparel, shoes, and accessories by the means of
offering sales and promotions to their customers. This is a clever strategy for attracting customers,
allowing them to believe that they bought goods at affordable, convenient prices – and not to
mention the prestigious name prescribed to the clothing brands. Using keyhole.co as my main
source, I obtained relevant and valuable information regarding the status of these brands. My
intentions were to compare a period of 14 days, however, due to the limited access that I received
from my free trial, the program only allowed me to see fewer of the dates than I anticipated. I want
to take this opportunity and mention ahead of time that due to the various and distinctive products
that are sold from these stores, when looking for the "spending capacity" I decided to focus on
shirts/ jeans for men and women and compare the prices among them since each of these retailers
carry those items and as a way to make this report easier to contrast and comprehend. Also, when
approaching the section of "setting", I screen–shotted some of the images on Instagram and made
them into a collage to separate the type of clothes and trends that each of these brands sell currently.
In the following modules

Abercrombie And Fitch Is Wrong
Tony Blair, a former prime minister of the United Kingdom, once said, "Those who wish to cause
religious conflict are small in number but often manage to dominate the headline." What he is trying
to say is that there are not many people who want to cause a religious conflict; however, those are
the people that usually affect other people. The company Abercrombie and Fitch has been caught
discriminating people who are different from the majority of people. In June of 2015, a girl named
Samantha Elauf was discriminated against for wearing a hijab, also known as a headscarf, to an
interview to work for Abercrombie Kids. She soon discovered that she did not get the job due to her
beliefs. Elauf should have been allowed to work at Abercrombie because ... Show more content on
Helpwriting.net ...
The company's look policy clearly states that employees cannot wear: "no hats, no black clothing,
no facial hair. Women's hair should long, and nail polish is discouraged" (Smith). This look policy
discourages people from applying for a job at these stores because some people would want to wear
hats, have short hair, etc. Elauf was not discouraged, but she was denied of a job at this company
because she wore a black head scarf to her interview at Abercrombie Kids. Now, Abercrombie is
starting to change its policy to allowing religious clothing/accessories and removing shirtless men at
store entrances. A justice of the E.E.O.C v. Abercrombie & Fitch Stores court case, Justice Samuel
A. Alito, asked, "'Do you think that those people have to say, 'We just want to tell you, we're dressed
this way for a religious reason?We're not just trying to make a fashion statement''" (Smith).
Samantha Elauf should not have had to tell the interviewer that she was wearing the scarf for
religious reasons. She would have gotten the job if she had not worn the hijab to the interview, so
she should have gotten the job even with the scarf. The look policy that was established by this
company discriminates people of many races and of

Overseas Expansion Marketing Pl Introduction
Overseas Expansion Marketing Plan MRKT501: Introduction to Marketing Hetali Patel ID
#1059117 Company Overview The idea of this product is to give the target market sector which are
guys and females between the ages of 14 and 20 years of age dress that permits them to be agreeable
and easygoing while as yet looking in trendy and stylish and keeping up a feeling of an extravagant
lifestyle. By simply acquiring the things the buyers are typifying the Abercrombie and Fitch proverb
of "casual luxury". It falls under the heterogeneous shopping item class, since all things sold by
Abercrombie and Fitch are exclusively purchased because of buyers individual inclinations. There
are whatever other brand that offer the same or comparable items, some at a great deal lower costs,
yet the purchaser buys Abercrombie items because of individual inclination. For example, I
personally love its jeans the way it fits on me. The objective business sector falls between those ages
since 14 years of age is normally when a youngster starts dressing themselves and looking for
themselves, so actually they need to dress like different children in school, or their relatives or
siblings. That need to dress as in vogue and "cool" as other people later transforms into a genuine
affection for the brand which makes the back to class and holidays season the busiest for the
organization since that is the point at which

Hollister Co : Marketing Strategies
Hollister Co. was founded in 2000 and is based in Los Angeles, California. The company operates
as a secondary business for Abercrombie & Fitch Management. The company provides clothing and
accessories for men and women. Hollister's main target consumers are teenagers. Hollister retails its
products through a chain of stores in the United States, Canada, and the United Kingdom. They also
sell their products online. The marketing strategies that Hollister use to promote their products are
by using a logo, a slogan, and informing what their products are pertaining too. Two of the
marketing strategies are very effective in attracting consumers while one of the marketing strategies
needs more research to be done. Because of Hollister's well known slogan, attractive logo, and the
way they use celebrities to represent their product, this makes them unique compared to other
clothing businesses. Fashion designer logos are intended to be the "face" of a company. They are
graphical displays of a company 's unique identity, and through colors and fonts and images they
provide important information about a company that allows customers to identify with the company
's main product. Logos are also a shorthand way of referring to the company in advertising and
marketing materials. Hollister's highly effective marketing strategy used to target consumers is their
logo. Their logo contains a picture of seagull that may come in many different colors or fonts,
sometimes they'll use other

Holt Renfrew Research Paper
Holt Renfrew– The company that was to become Holt Renfrew was founded as a hat shop in
Quebec City, Canada, in 1837, by Irishman William Samuel Henderson. In 1849, William
introduced furs into the business and three years later sold the shop to his brother John. In 1860,
G.R. Renfrew became a partner to form Henderson, Renfrew & Co. After another change in
partnership in 1867, John Holt joined the company that would officially become Holt Renfrew &
Co. Ltd. in 1908. Historically renowned for fine furs, Holt Renfrew received the prestigious honor
of five generations of royal warrants under Queen Victoria's reign and appointed Furrier–in–
Ordinary to her Majesty. In the 1930s and 1940s, international designers were added and the oldest
existing

Abercrombie Analysis Finance
FINANCIAL MANAGEMENT PROJECT
1
Summary
A. INDUSTRY ANALYSIS B. RATIO ANALYSIS 1. LIQUIDITY RATIOS 2. ASSET
MANAGEMENT RATIOS 3. DEBT MANAGEMENT RATIOS 4. PROFITABILITY RATIOS 5.
MARKET VALUATION RATIOS C. CONCLUSION APPENDICES AND SOURCES:
3 5 5 5 5 6 6 7 8
2
de JAHAM Charles
04/18/2012
Abercrombie & Fitch Co., «A&F», is an American public company founded in 1892. The Company
is an international retailer that provides casual sportswear under various subsidiaries such as
Abercrombie and Fitch, and Abercrombie kids but also under Hollister brands. The ... Show more
content on Helpwriting.net ...
00 Receivable Turnover (TTM) 23.60 Inventory Turnover (TTM) 4.30 Asset Turnover (TTM) 1.60
4
de JAHAM Charles
04/18/2012
B. Ratio Analysis
1. Liquidity ratios a) Current ratio Abercrombie and Fitch has $1,49 of Current Assets to meet $705
of its Current Liability. It means that the company can solve its debt with its assets. In addition, we
can notice that the industry ratio is 2.11, then Abercrombie and Fitch has a worse current ration than
the industry, which is 2.30. But it's bigger than 1 and around two, that's mean the working capital is

positive. In the last four years, the current ratio has grown of 18,13%. b) Quick ratio Abercrombie
and Fitch has $1,91 of Quick Assets to meet $705 of its Current Liability. It's mean the quick ratio is
1.30, then Abercrombie and Fithc has a better ration tjan the industry, which is 1.10. The company
will have no problem to borrow from the bank. In the last four years, the quick ratio has grown of
22,23%.
2. Asset Management ratios a) Day sales outstanding = Account receivable/(sales/360) =

Abercrombie And Fitch 's High Quality Merchandise
Abercrombie & Fitch
ANF
Abercrombie & Fitch is an American company founded in 1892 and is known for its high quality
merchandise. Abercrombie & Fitch (ANF) has developed from a sporting goods store that sold guns,
fishing rods, and other outdoor activity goods to a top performer in the retail industry. ANF
continues to assess their financial situation and their marketing position as the firm continues to
struggle to expand its brand with a high price margin. The company is a successful retail brand in
America; however, it faces challenges to expand its growth domestically and internationally, and
issues with brand expansion.
The company portfolio consists of four chains that generate revenue from clothing and fragrance
sales through ... Show more content on Helpwriting.net ...
With a strong economy, clothing firms expect an increase in demand, as there are no substitutes.
However, in a downfall economy and a price increase by one firm, will driver consumers to a
cheaper firm. ANF has a market share of 3.3% in the retail apparel market and thus, isn't a major
player. Typically in this market, if a firm wants to grow, it must take away market share from its
competitors, therefore, branding is a major driver for revenue.
Due to high level of competition and a steady trend in growth, the specialty apparel industry
experiences same sales growth due to the shift in consumer preference if a firm increases prices. The
Abercrombie & Fitch has few strengths compared to competitors. ANF has a strong brand
recognition, which gives it advantage in barriers to entry against new rivals trying to create an image
for themselves. Its international growth, over 1000 stores globally, have helped increase revenue for
the firm. However, the competitive market leaves little room for increasing price margins. For
example, it is understandable for a customer to leave an ANF store and walk into a competitor store
and buy apparel at a cheaper price. As competition grows, companies must spend more money in
marketing to expand market share. ANF has seen tremendous growth, especially in 2005. The
industry has seen a growth of 26% in 2005, however, a 2% increase the following year. The strong
performance in 2005 has given

Diversification Strategies
Running head: STRATEGIES
Diversification Strategies
Pamela L. McGhee
Dr. Kimberly Anthony
The Business Enterprise – BUS 508
Strayer University, Savannah Campus
30 October 2011
Diversification IBM a Fortune 500 company celebrated its 100th birthday this past June. IBM
employs over 400,000 employees and is considered to be a $100 billion dollar or more giant in e–
business global marketing technology. With the inception of the computer, IBM's core business was
mainframe computers, which almost bought the company to its knees in bankruptcy. IBM looked at
the PC as just a gadget and with any gadget over time would fade into oblivion. IBM would find out
the hard way that the PC would rapidly transform the world into the ... Show more content on
Helpwriting.net ...
IBM's diversity strategy is not limited to some but to all managers in the IBM workforce. (Shaw,
2008) The diversification strategy for Abercrombie and Fitch has been unsuccessful in past years.
Some just don't get it and some never will. That is how some in the corporate world looked at
Abercrombie and Fitch. A&F has on several occasions been sued for their lack of diversity
within their organizations in the area of discrimination. The first lawsuit in 2001 came about when
A&F failed to hire minorities and women to work during the daytime in their stores. Those
who were hired that were women and minorities worked the nightshift which consisted of cleaning
the building and were told by store employees to never come to A&F until after the store was
closed. After a thorough investigation conducted by the Los Angeles District Office of the Equal
Employment Opportunity Commission (EEOC), A&F was found to have thrown away
applications that should have been kept on hand for at least a year or more to cover up their hiring
practices. (Esemplane, 2008) Another subtle hint of discrimination was that store employees were to
only approach those shoppers who fit the A&F image. The image of A&F is one who is
blonde hair and blue eyed. (Carando, 2007) In 2003 a discrimination law suit reared its head against
A&F, this time in North Carolina. This was a

Primark Essay
COMPANY Company Description
Arthur Ryan is the founder of Primark, in June 1969.Primark is part of (ABF) Associated British
Foods, and ABF is the parent company of Primark. Primark is one of Europe's largest clothing
retailers and an expanding international business. Primark opened the first store in Dublin in 1969
under the name Penneys. Nowadays, Primark operates in over 270 stores mainly in the UK, Ireland,
and Spain also in several other countries in Europe.
Primark offers a diverse range of products, stocking everything from baby and kid, to women, men,
home, accessories, beauty products confectionery and household textiles. The company aims to
target their customers by offering the various products with a good quality in the affordable ... Show
more content on Helpwriting.net ...
Do other companies have the same resource or capability? (Jurevicius, 2013). In the fast fashion
industry, Primark is completing against Forever 21, H&M, Zara, Tesco, Marks &Spenser, Costco,
and New look. However, Primark has the advantage over others in term of sell volume. Primark is
able to place the latest items in stores which are lead to customer's satisfaction whilst others require
more time to produce luxury brands. Moreover, Primark offers affordable good quality products
because of the resources they have as mentioned before. This distinguishes Primark from other
fashion brands.
Imitation
The question to ask about limitability: How easy or difficult for competitors to imitate the firm? If
so how much will it cost? (Jurevicius, 2013). Imitation can be seen in two difference ways which are
direct duplication and substitution. In the case of Primark, some of competitor's strategy might use
the same or similar business model to Primark. Competitors might lower their price and still offer in
a good quality. However, this could only happen in a long run and the cost of imitation will high in
order to have a competitive advantage.

Hollister
Target market– The target market is made up of males, females, age groups, income, and also the
location of your house. Hollister's target market is mostly high school and college students. Hollister
and Abercrombie and Fitch are owned by the same person. Abercrombie and Fitch were originally
designed for college students, while Hollister was lower priced for high school students. I think that
college and high school students both shop at Hollister. Hollister is less expensive then
Abercrombie. Although it is pricier then other young adult stores. I think Hollister targets middle to
upper–class income in Ohio. Most of my friends shop at Hollister since it is fashionable and
reasonably priced. Retail format – The retailing format is a ... Show more content on
Helpwriting.net ...
Hollister also delivers high customer service with many employees working at once. Usually the
employees are the age group that would shop their. This will help customers keep coming back to
the store.
Sales
Hollister attracts many young shoppers which will help increase the sales. Hollister is geared
towards high school students. Most of the time when one is in high school they go shopping with
their parents. Parents have more money

Abercrombie and Fitch
Abercrombie and Fitch: International expansion external and internal analysis Name Here Business
Mgmt Name Here Date Here Executive Summary This case study was identified to examine why
international sales volume of Abercrombie and Fitch have increased over the past three years and to
recommend further international expansion to increase sales volume. The research draws attention to
the fact that in 2009, the US stores generated 81.2% of Abercrombie and Fitch's net sales. The
shares of international stores and direct–to–consumer net sales were very small in comparison. Over
the next two years the US stores decreased net sales percentages while net sales increased. Further
investigation reveal that the US market shrinkage ... Show more content on Helpwriting.net ...
The company is headquartered in New Albany, Ohio with over 1000 stores in North America,
European union and Asia and $4.1 Billion in net sales. The organization has approximately 85,000
associates including part–time. In 2006 Abercrombie and Fitch launched the initial international
expansion with the opening of the London, England store. From that initial launch the company has
successfully launched other international locations in Milan, Italy and Tokyo, Japan as well as other
locations in European union and Asia. In addition to these brick and mortar operations, Abercrombie
and Fitch have expanded its international reach with its online store capability. External
Environment – General Political Any organization expanding its operations internationally faces a
number of political factors including: Government and tax guidelines, employment regulations,
environmental regulations, trade and tariff regulations and limitations, as well as other factors.
Organizations that operate internationally need to review and ensure that free trade agreements are
in place for easier transfer of materials for the purpose of manufacturing as well as the distribution
of the final inventory for end sales. The majority of clothing manufacturing resides within Asia,
Central America and South America. In these regions there are risks associated with

Comparison Of Abercrombie And Fitch
Analysis of competitive position, opportunities, and threats
Brand image– Abercrombie & Fitch brand image is not as strong as their top three competitors. I
believe that the company decision not to adjust their prices along with their marketing complain
provided their competitors with an opportunity to capitalizes in promoting their brands throughout
the retail industry. Barbara Farfan (2016) stated that the company's decision not to adjust their prices
during the recession", hindered Abercrombie and Fitch Brand image while, other retail business
such as American Eagle, took the opportunity to employ successful discount strategies that attracted
customer to their business.
Global Expansion– the Global Expansion of Abercrombie & Fitch has ... Show more content on
Helpwriting.net ...
Moreover, I believe that the company should consider filtrating more international markets around
the world. Furthermore, I also believe that their opportunity to expand their online retail outlet
would provide substantial benefits to the financial reports overall. The expansion of their E–
commerce initiatives will allow the company to target populations without having to establish
physical locations in those areas. Forbes Magazine (2015) "Abercrombie international store is about
85% more productive than a domestic store (in terms of revenue per square feet), which clearly
indicates that stores in lucrative international markets are good option for the company."
One of the biggest threats to Abercrombie & Fitch is the price disparity between their products and
those of their competitors. Additionally, those company such as Wal–Mart, Target, Amazon.com and
other larger retailers are now selling products that are similar in design and material, at a much
cheaper cost to the consumer. Additionally, the threat of counterfeit products that are produced in
countries such as China has also reduced the market share of the company.
Additionally, the economic conditions where the company operates is another threat that must be
evaluated by the company. Moreover, the decrease in income generated will have a major

Abercrombie & Fitch
Abercrombie & Fitch Sadarya McArthur Strayer University I. Identify and describe the greatest
environmental threats that have immediate implications for A&F. A. Lack of Variety A&F was
known for its lack of variety. They were known for hiring males and females with a certain kind of
style. You had to look a certain way to be an employee and most of all you had to be attractive.
Females had to wear makeup to enhance their features and males had to be clean shaven with no
mustache or any facial hairs. They were sent to only white fraternities and sororities to recruit them
for work. They only displayed posters of attractive white models. This was a threat to the companies
reputation. B. ... Show more content on Helpwriting.net ...
. B. Store Format A&F was able to successfully implement an exciting store format. According to
marketing expert, Pam Danziger, "Shoppers are rejecting the old concept of 'hunting and gathering'
shopping in favor of a more involved, interesting, dynamic retail experience." Each A&E store was
designed according to one of several specific models created at company headquarters. Hollister
stores were designed to look like beach houses with faux porches and house style layouts.
Surfboards leaned against the store walls. Fans blew to mimic the breeze as if you were really on the
beach. Shoppers could sit in chairs and read different kinds of magazines. Ruehl stores imitated the
architecture of Greenwich Village with red brick facades, iron fences, flowerboxes, and small
windows. They looked like brownstones. Customers really enjoyed this new look of all A&F stores.
People would just stop by to see the new look in the stores which in turn boost sales because they
spent money once they were in the store. C. Target Market A&F had an enviable target market. It
catered to teenagers, whose population in the United States was expanding. In 2003, 32 million
teens lived in the United Stated. This number was expected to rise to 35 million by 2010. Teens
spent approximately $170 billion on goods and services in 2002, with one–third going to apparel.
Teen retailing was

Abercrombie And Fitch Vs. Fitch
Abercrombie and Fitch is widely known for placing their stores in high traffic shopping channels
such as popular malls and plazas. A typical consumer would most likely find one of the brand's main
stores, Abercrombie & Fitch or Hollister Co., located in their local malls. Locating the store and
products are not issues for the average consumer, but it is when they step foot into an establishment,
just pass by it, would be where the problems arise. With the brand's peak in the early 2000's, stores
were designed for the trendy target market of the time. Creating a "cool," environment with dim
lighting, extravagant décor and store fronts, upbeat music, and wall displays that would draw in
"worthy," customers. While this may have worked well for luring consumers before the recession,
things have quickly led to a downward spiral after controversies continued to pile against this once
mighty brand. Through the ZMET research method, the consistent negative responses to provocative
models on wall displays and advertisement. Many questioned if Abercrombie & Fitch was trying to
promote their merchandise or solely on who and what is acceptable to the brand. What used to bring
crowds into these stores have backfired due to society becoming more socially conscious and
sensitive. This led to participants informing us that they felt only people who looked a certain way
are allowed to enter and were intimidated instead of feeling welcomed. The environment of all of
the stores under the brand

Abercrombie And Fitch Mission Statement
Situational Analysis
Internal Analysis Abercrombie & Fitch is a popular retail clothing store whose headquarters is based
out of New Albany, Ohio. It has become the essence of privilege and casual luxury, made to fit the
all American lifestyle. It is a specialty retailer that operates stores and direct–to–consumer
operations (New York Times 2014). In 1891 David T. Abercrombie founded Abercrombie & Fitch. It
originally started as an expensive sporting good shop selling various guns, tackle, clothes and shoes
as well as many other sporting equipment. After years of expending to other large cities,
Abercrombie decided that it was time to tap into a different market, one that would include less
expensive items and cater to more suburban households (Britannica, 2014). ... Show more content
on Helpwriting.net ...
This company now operates over 300 stores nationwide and sales everything from casual
sportswear, jeans, outerwear, sleepwear, and accessories for women, men and kids (New York
Times, 2014). Per Abercrombie's mission statement " It is our mission to continue ore efforts to
support human rights, stand for and achieve diversity and inclusion, invest in our associates, give
back to our communities, commit to environmental sustainability efforts and make responsible
business decision. We believe in advancing corporate responsibility within our company and our
industry. We are passionate about creating a stronger and more positive environment for everyone to
enjoy" (Fitch,

Company 's Internal And External Analysis
Consulting Letter
Dear Mr. Jefferies, After considering the company's internal and external analysis, it is clear that
Abercrombie and Fitch need to implement a new strategy for future success. Considering consumer
trends, and the company's current outlook, changes need to be made. The strategies I recommend are
to market the company as a more receptive brand in the United States as well as looking to penetrate
international markets while closing down underperforming US stores. With consumer trends of
online shopping being on the rise, Abercrombie and Fitch can look to close down those stores who
are not meeting sales quotas. Your firm is already considered one of the first–movers in the online
sphere, but now is the time to fully take ... Show more content on Helpwriting.net ...
Considering that international expansion incurs lots of capital costs, it is a strategy that you should
slowly implement and keep taking note on the returns of investment. The benefits the company will
receive include sustainable profit growth, increase market penetration and improvement of your
brand's reputation.
Key Issues Abercrombie and Fitch Co. is a men and women's clothing company which is built on
the philosophy of not trying to be all things of all people, meaning, not everyone is able to identify
themselves and relate to the brand. Their current CEO, Mike Jefferies, is faced with the issue to
decide whether the firm should expand its direct–to–consumer and international sales. By doing so,
he would be looking to close down domestic stores in the United States. This issue have appeared
due to the company missing Wall Street's estimates in 2011, thus experiencing a drop in shares.
Although sales have increased domestically, the company had to use price discounts in order to
drive those sales, thus lower gross profit, and creating an unsustainable strategy for the future. As a
result, he ponders whether to close down the lower–yielding domestic stores and concentrating on
online and international expansion.
Internal Assessment
Abercrombie and Fitch is a "casual luxury" clothing band based in the United States. They have 3
distinct brands (Gilly Hicks, Hollister, abercrombie kids) that

Abercrombie and Fitch
As the current face of preppy America, widely known for its obsession with beautiful people,
Abercrombie and Fitch is a long way from its roots as an elite retailer of sporting and excursion
goods, aimed at adult shoppers at the time of it's founding in 1892. Abercrombie and Fitch has
experienced significant growth through sell of premium priced apparel and accessories to the 30 and
under demographic through its independent brands. An assessment of the company's strategies, key
opportunities and threats as well as industry strategies and competitive dynamics shows a company
that is poised to be a long–term leader both in the US and international retailing. Abercrombie and
Fitch, headquartered in New Albany, Ohio, operates ... Show more content on Helpwriting.net ...
International growth is however very costly and the company might be unable to successfully open
and operate all its new stores. Other issues that could affect international growth include fluctuation
in exchange rates and reliance of international suppliers. Until recently, Abercrombie and Fitch's
business model was not focused on customer satisfaction, but on exclusivity, a sultry attitude and a
cooler than thou ambiance giving it a very strong brand presence (Kang, 2005). Abercrombie and
Fitch employs a focus differentiation strategy with a very specific target demographic. Their
products very highly priced in comparison to their competitors. Abercrombie and Fitch walks the
casual and luxury line enabling it to charge high prices. The target demographic is attracted to strong
brands, fashion and value. With the recent improvement in customer satisfaction, the brand should
continue to realize greater revenue than its direct competitors. Trying to stand out in the apparel
industry can be very difficult but Abercrombie, famous for bare chested models and racy marketing
photography, has managed to differentiate itself from its competitors through its marketing
campaign (Marketing at Abercrombie and Fitch, 2012). They have a minimalist approach to
marketing with a less is more strategy as can be seen through the way their models dress and also
lack to a TV presence. Because

Abercrombie & Fitch Company Financial Analysis

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Abercrombie & Fitch Company Financial Analysis