Abercrombie is thriving as it expands its offerings, from tween staples to bridal dresses
That’s so Fitch… Abercrombie & Fitch’s comeback streak has been fiercer than Fierce cologne. Shares of the mall icon popped 24% yesterday after the company reported a fragrant $1B in quarterly sales, up 22% from last year. A&F also smashed profit expectations, with operating income up nearly 7x. A middle-school must-have in the early 2000s, A&F lost its cool factor in the 2010s. But after a massive makeover and more inclusive marketing, Fitch is back:
High rise: A&F has emerged as one of the biggest winners in retail, building on its double-digit sales growth last year. It lifted its revenue guidance for this year too.
Lose the moose: Abercrombie ditched its logo-centric branding and leaned into fashionable basics, from officewear to its popular jeans.
Beyond A&F… Abercrombie has been growing its sub brands like Hollister, which accounts for nearly half of its revenue (Hollister has twice as many stores as A&F). While A&F is geared toward millennials, with Hollister, Abercrombie’s targeting 13- to 21-year-olds. It said that Gen Z customers engage with the brand on social media but purchase in stores (70% of Hollister purchases are in person). Abercrombie’s also expanded into wedding attire:
Abercrombie and hitched: In March it launched the “A&F Wedding Shop,” pitching it as a hub for wedding-related attire (bridal-shower dresses, bachelorette fits). Abercrombie said the offering “clearly exceeded” expectations last quarter.
Grow with your customers… Sub brands let retailers offer something for every stage of their customers’ lives. Some could start with Abercrombie Kids, move to Hollister as a teen, graduate to A&F when they enter the workforce, and tap into the Wedding Shop when they get married. Other sub brands driving growth: American Eagle’s loungewear retailer, Aerie, and Urban Outfitter’s boho-chic, Free People.