...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 introduced in 1997. The latest concept, Hollister Co. was introduced in July 2000, and targets 14 - 18 year olds. BUSINESS CHALLENGE For the past two years Abercrombie has entrusted its order management, customer service and fulfillment needs of the direct side of the business to CommercialWare. CommercialWare’s robust CWDirect solution successfully captures a wealth of transactional data from the thousands of orders processed. The real challenge for Abercrombie is to turn this vast amount of transactional data into information that can be used to make better business decisions, and do so in a cost effective manner. Abercrombie was looking to easily answer the fundamental questions that would help them to grow their direct business: What are my best...
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... Abercrombie and Fitch ( ANF) Company overview Description The company incorporated in Delaware in 1996 . Abercrombie and Fitch is an apparel retailer specializing in trendy merchandise for young men , women , and children. The Adirondacks supply a clean inspiration to this peppy , youthful all American life style . The company 's strategy is to offer multiple styles of clothing for young shoppers . The portfolio consists of Abercrombie and Fitch , Abercrombie kid , Hollister , and Gilly hick. Each brand targets a different general style . The company has positioned itself as a one stop shopping place for the entire family. In the other hand , the company maintains the same styles and offerings on their e-commerce sites. As of January 28, 2012, the Company operated 946 stores in the United States and 99 stores outside of the U.S. The Company’s fiscal year ends on the Saturday closest to January 31, typically resulting in a fifty-two week year, but occasionally giving rise to an additional week, resulting in a fifty-three week year. (Fiscal years are designated in the consolidated financial statements and notes by the calendar year in which the fiscal year commences). The Company’s in-store marketing is designed to convey the principal elements and personality of each brand. The store design, furniture, fixtures and music are all carefully planned and coordinated to create a shopping experience that reflects the Abercrombie & Fitch, Abercrombie kids...
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...{draw:frame} Abercrombie and Fitch Case Study 4/21/2010 Executive Summary: Abercrombieand Fitch was Founded as a High Quality sporting goods store in 1982 by David Abercrombie. Abercrombie Co opened its first store in Manhattan, New York with the intention of providing high quality equipment to an elite segment of the market. Throughout the years, Abercrombie and Fitch Co has proven itself to be able to adapt to the constant changing retail market and has slowly evolved in the retail giant we are familiar with today. Abercrombie and Fitch currently employ a focused differentiation strategy where they target customers ages 12-25. Instead of using conventional methods of strengthening their brand through advertising and a squeaky clean image, A&F instead takes full advantage of controversy and word of mouth advertizing in order to gain their customer base. It is through A&F’s unorthodox methods that they have been able to establish themselves as a highly desirable, high quality apparel retailer and due to these factors they are able to charge a premium price for their products. A&F’s current strategies have helped them to not only establish themselves in the United States, but they are now poised to expand into the global market. With the recent opening of flagship locations in Tokyo, London, Milan, A&F now has a solid foothold to tap into the Western European and Asian Markets. With the potential in these foreign markets, A&F should realize high levels of growth...
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...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 in terms of overall company net sales percentage coincided with the increase in international sales and direct-to-consumer sales and the overall company net sales percentage over the same time period. Since the economic downturn in the US economy in 2008 the disposable income for Abercrombie and Fitch clients appeared to decrease. Additionally individuals were utilizing disposable income for other items such as technology, cell phones and other gadgets. These two items appeared to be the major causes of the decreased company percentage in net sales of Abercrombie and Fitch in the US. During the same two year period the international stores and direct-to-consumer net sales increased dramatically. This was an increase of 342% for international...
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...Executive Summary: Abercrombie & Fitch, American Eagle, and Urban Outfitters are considered member of the Family Clothing Stores industry, an industry that was hit hard by the economic crisis. Abercrombie & Fitch and American Eagle have similar growth models of expansion through new stores and markets and have seen similar growth and loss in revenues over fiscal years 2005 to 2009. ANF and AEO are in direct competition for the teenage consumer market and have launch competing brands, AEO’s Aerie in 2006 and ANF’s Gillyhicks in 2007, during the five year span. Urban Outfitters has a different marketing strategy that involved expanding brands sold within their current stores. They have seen significant growth in both sales and shareholder value over fiscal years 2005 to 2009, even through the economic crisis. Industry Overview: Abercrombie & Fitch, American Eagle, and Urban Outfitters are all a part of the “Family Clothing Stores” industry. This industry was comprised of 92,400 total clothing stores at the beginning of the analysis in 2005, and had estimated sales of $77.2 billion in the United States. The Family Clothing Stores industry consists of specialty stores (22% of the market), discounters (19%), department stores (17%), off-price stores (7%), mail order (6%), outlets (4%), and other stores (7%), with all three of the companies researched included in the specialty stores category. Research and technology are major players in this industry as quick distribution and...
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...Abercrombie and Fitch Abercrombie &Fitch is an American fashion retailer, that sells what they call « casual luxury » apparel for men, women and children under five concepts Abercrombie & Fitch, abercrombie, Hollister, Gilly Hocks and Ruehl No.925, with the main target group being teenagers. From being just one store, the brand prospered to be one of the strongest in the speciality retail market, and now consists of over 1100 stores mainly in the US and Canada, but also in the UK, Italy, Japan, Germany and Spain. They will now expand to even more countries with plans to open up in France, Sweden, Croatia, Denmark, Ireland and China. Abercrombie & Fitch was founded in 1892 in New York by David T. Abercrombie. In the beginning, outdoor and sporting equipment was sold in the one and only store located in lower Manhattan. Ezra Fitch was a lawyer that was dedicated to trekking, who convinced David Abercrombie to let him become a partner in 1900, and the name was then changed to Abercrombie & Fitch. The relationship between Abercrombie and Fitch was not very good, and in 1907, Abercrombie left the company. In the 1960s A&F went bankrupt, and was purchased in 1988 by the Limited Inc, that developed the company to be the lifestyle brand it is today. The image of this brand is being an internationally known near-luxury lifestyle concept. Abercrombie & Fitch is a fashion company, and its success lies on its ability to anticipate new fashion trends and adapt...
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...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 report analyzes A&F externally showing what kind role each factor, such as price and quality, plays in A&F and its competitors. The external analysis describes the political, economic, social, and technological factors in A&F’s environment and how each of these factors can be used for the benefit of the company during this recession. To further clarify A&F’s positioning, a perceptual map has been developed in which A&F shown as a high priced and high quality retail organization. It can be noted at this point that all of A&F’s competitors are willing to promote its employees and give discounts while A&F chooses not to, and yet they have the highest drop in sales growth. Moreover, the report’s most important part being the...
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...| ABERCROMBIE AND FITCH CO.A MARKETING APPROACH | Student Name | [Date] | [Course title] | | | ABERCROMBIE AND FITCH CO.A MARKETING APPROACH | Student Name | [Date] | [Course title] | | Abstract Marketing is considered as the key to the success or failure of any product or services which are provided by the company. In order to beat their competitors organisations keep on launching events and brand promotion campains. Also, with changing customer behavior it is very important for a company to keep his marketing strategies unique in order to attract more and more customers regularly. The study in this report moves around the different type of marketing strategies and models used by organisations these days along with the case study of Abercrombie and Fitch Co. to create their brand value and getting an international recognition among the top appeareal companies around the world. The paper is studied with respect to the most important related departments of a business marketing finction: services, human resources and finance. Furthermore, the case study of another retail business giant apple is studies to conclude about the research and findings. The structure of report includes discussion about the problem in martketing and analysis. The proposed solutions to the research post findings is also included in the thesis. Previous study for marketing research about Apple is also include in the report to conclude the research. Table of Contents Chapter...
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...Investments BUY: ABERCROMBIE AND FITCH Analyst: Steve Bright The Midriff Exposed March 26, 2004 • We recommend ANF as a hold. Our price target of $34.23 is 6% below the current share price. • We believe the stock is fairly valued and should be purchased on dips. We remain cautious on the shares longer-term; we desire continued strong execution from Hollister and await ANF’s new concept store rollout. Source STOCKVAL • ANF continues to build cash and recently announced it will begin to pay a dividend in 04. Though beneficial to shareholders, we prefer to see management reduce prices with the intent to increase foot traffic and potential sales. We believe several competitors have begun to price apparel below that of ANF to increase their ROE. With regard to the dividend payment, we would have preferred for management to use the cash to repurchase shares, although the dividend is likely to appeal to value investors. • We believe ANF will continue to grow due to the overall structure of the industry. As teen spending continues to grow in proportion to the population, we believe there will be consolidation in the specialty retailers to leverage operations and brand recognition. Based upon the cash position of ANF, we expect ANF to be an acquirer of companies. • ANF has demonstrated the ability to successfully execute on its key critical success factors, including inventory management. We believe...
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...[pic] SWOT Analysis of Hollister Co. By: Jessica Gray, Mehrosh Hasher, Lydia Russo, Rachael Ware, and Desiree Urban October 4, 2009 AA 381 Fashion Buying Introduction: Hollister Co. was launched by Abercrombie & Fitch Company CEO Michael Jeffries in July 2000, and is a lifestyle brand that markets apparel and fragrances reminiscent of the southern California way of life (Palmer, 2009). Hollister Co., whose clothing is known for their signature seagull logo embroideries, has become widely recognizable due to its success in creating a strong brand image (Palmer, 2009). Hollister Co.’s retail stores, featuring only its own private label merchandise, are usually located in malls and generate significant traffic due to its unique atmosphere complete with ultra-dimmed lights and blaring popular music (Palmer, 2009). The brand’s target market consists of both males and females between 14-24 years of age (Palmer, 2009). Hollister Co. is known for the model-like staff it employs, and the sensual advertisements and store décor that accompany them (Palmer, 2009). Their clothing reflects this ideal, running in notoriously small sizes and only consisting of a very limited collection of casual beach-ready graphic t-shirts, jeans, thermals, swimwear, leggings, shorts, and sweatshirts (Palmer, 2009). Though Hollister Co. has recently been suffering large net losses, it has ranked first place for the Teen’s Top Clothing Brand for four consecutive seasons since 2007, and...
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...Abercromie & Fitch Abercrombie and Fitch Co. (« A&F ») is an international fashion retailer selling apparel, fragance and luxury products to young customers. The brand describes itself as « casual luxury ». They developed a strong brand image based on provocative communication and specific in-store experience that fits with the cool lifestyle it promotes. However, sales have been dropping for years and do not seem to be going in the future. In 2013, the firm closed about 220 mall stores and entering December 2014, profits were expected about $106 milions, less than half of what they had been in 2012. Fitch’s performance is declining fastly, and it can be explained through internal and external factors. Some of these factors include lack of sustainable competitive advantage, public relation issues that affected the brand’s identity and image, rise of fast fashion competition and its struggle with its brand position and pricing while the consumers’ preferences are changing. Through examining these various elements, it is clear that Abercrombie and Fitch must take a diverse approach in order to revitalize its brand and maintain profitability. First of all, one of the main internal issues that led to Fitch’s decline was their lack of sustainable competitive advantage. Indeed, A&F views brand image as its most important asset, and their postioning enabled them to set premium prices on their apparel. They lost their audience and brand image these past years ; in...
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...TO: CEO of Gap Inc. FROM: Andre’ Snead I have conducted a company analysis on Gap Inc. and my findings resulted in the following recommendations to improve their sales for the next three years: * Gap Inc. need to produce a better advertisement campaign that relates more to their customers. * Fashion and brand-conscious consumers who shopped at retailers such as Gap tended to be emotionally driven in their purchasing behavior and were influenced by marketing efforts that showcased the store’s latest trends. According to Exhibit 1, buyers bargaining power is strong because they control what they purchase and from what retailer they purchase from. Buyers are more inclined to make wiser purchases because of the state of the economy. By producing a better advertising campaign, Gap Inc. can entice an emotionally driven customer that sees a commercial or a billboard to make a purchase. * Social media have taken over the lives of many consumers in America. This is another area that Gap Inc. should focus its advertisement strategy. By utilizing Facebook and Twitter, Gap Inc. can reach out to millions of their customers and increase their brand image, which is a key success factor in the retailing industry. (See Exhibit 2). * Gap Inc. should focus some of its resources and assets on producing plus-sized clothing in the United States market. * By 2010, the plus-sized segment in the clothing store industry reached 27 billion dollars. The number...
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...TABLE OF CONTENTS INTRODUCTION AEROPOSTALE, INC. VS. ABERCROMBIE AND FITCH CO. PERFORMANCE DURING RECESSION AEROPOSTALE EXPANDING E-COMMERCE SALES BACK TO SCHOOL SEASON INCREASES IN COMMODITY PRICES ANALYSIS PROFITABILITY GROSS PROFIT MARGIN NET PROFIT MARGIN INVENTORY TURNOVER RETURN ON CAPITAL EMPLOYED (ROCE) LIQUIDITY CURRENT RATIO ACID TEST OR QUICK RATIO DEBTOR DAYS CREDITOR DAYS SOLVENCY GEARING VALUATION EARNINGS PER SHARE (EPS) CONCLUSION BIBLIOGRAPHY APPENDICES LIST OF TABLES TABLE 1: FINANCIAL PERFORMANCE INDICATORS ON PROFITABILITY TABLE 2: FINANCIAL PERFORMANCE INDICATORS ON LIQUIDITY TABLE 3: FINANCIAL PERFORMANCE INDICATORS ON SOLVENCY TABLE 4: FINANCIAL PERFORMANCE INDICATORS ON VALUATION 0364693/2 INTRODUCTION Aeropostale, Inc. (ARO) which is frequently referred to as Aeropostale by their consumers is a U.S. based clothing retailer that sells casual clothing with approximately 900 plus stores located in the United States, Canada, Puerto Rico and the United Arab Emirates. ARO stores are primarily based in shopping malls and sells fashion apparel inclusive of printed tees and polos, shirts, jeans, footwear, swimwear, underwear, fleece and accessories. ARO’s teen brand has been extremely successful and as a result of this, they were driven to launch a new brand, P.S. from Aeropostale which sells children’s clothing. AEROPOSTALE, INC. VS. ABERCROMBIE AND FITCH CO. To sell their own brand of apparel and accessories, ARO targets a young demographic...
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...are a company that designs and retails athletic clothing. They produce fitness pants, shorts, tops and jackets for yoga , dance , running, and general fitness. Lululemon serves customers globally through on line and retail stores. They sell high quality product with high prices compare to other retail stores. They have market in North America, Canada, New Zealand and Australia. Chip Wilson open and design/ yoga studio in 1998 in Vancouver, British Columbia 1. What is the company vision/ mission and objective? * Vision: The store to be community hub where people could learn and discuss the physical aspects of healthy living form yoga and diet to running and cycling, plus the yoga related mental aspects of living powerful life of possibilities. (Not just selling the products to the customers. Their goals is to let the customers discuss about their physical activities to have a healthier life and wearing their product to exercise. ) * Mission : one of the providing people with the components for living a longer, healthier, and more life. (The purpose of its present business is distinctive community based strategy that enhances the brand and reinforces guest loyalty. The components giving to people help them exercise and become fit with stylish sport wear from Lululemon) * Objective: Assembled a management team with a mix of retail , design , operations, product sourcing, and marketing experience form such leading apparel and retail companies as Abercrombie &Fitch...
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... 3 Company Overview 7 HISTORICAL FINANCIAL STATEMENT ANALYSIS 14 RATIO ANALYSIS 16 THREE-YEAR PRO-FORMA 18 SUMMARY OF VALUATION 20 MD&A AND TRANSPARENCY 22 CORPORATE GOVERENCE 22 CONCLUSION 24 REFERENCES 25 Executive Summary Urban Outfitters, Inc. is a lifestyle retail company that operates retail-clothing stores. It operates through two reportable business segments: Retail and Wholesale. The Retail segment consists of Urban Outfitters, Anthropologie, Free People, Terrain, Leifsdottir and BHLDN brands, whose merchandise is sold directly through stores, catalogs, call centers and web sites. The Wholesale segment consists of two divisions: Free People and Leifsdottir. The Free People division designs, develops and markets young women's contemporary casual apparel. The Leifsdottir division designs, develops and markets sophisticated women's contemporary apparel, including dresses, tops, bottoms, as well as shoes and accessories. The company was founded by Richard A. Hayne and Scott A. Belair in 1970 and is headquartered at 5000 South Broad Street, Philadelphia, Pennsylvania 19112-1495, Phone: 1- 215-454-5500. Urban Outfitters is an Apparel Retailer in the consumer services sector with a projected Revenue of $2,441,876.80, Net Income of $265,353.48 and an estimated continued Sales Growth rate of 10% through 2012. In the following report, you will find a detailed company overview...
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