Back in 2012, the fashion company Abercrombie & Fitch Co., reported that it was in the works of closing a total of 180 stores in US by 2015 as it attempts to expand its market to international continents such as Asia and Europe. Last year, it wasn’t a massive hit but what can be the current standing of the company now?
More on the numbers, the fashion line’s quarter reports was a letdown with a 35 per cent decline of net sales and overall 12 per cent from previous year compare to its international sales of 22 per cent. Simply put, the revenue of the company fell up to 12% analogous to sales fallen 10%.
That time the company hasn’t had a permanent CEO and it was a struggle for the company at that time. It affected it majorly for it actually lost a number of target market and sales and discount aren’t appealing to the shoppers. Their solution to such lost didn’t actually help in the process. Such strategies as to cutting costs, plummeting the number of inventory, opening international branches didn’t actually pay off and thus just adding to the financial status of the company and the company itself.
The resignation of Mike Jeffries however, had an effect on the stock for it rose to a percentage of 6. Jeffries’ exit was a good sign for investors for the take it as a big step forward for the company in terms of development and progression. In his term, the company has lost in touch with its core demographics and it has been a struggle to get back to the same position where it was before. Currently, the company has three candidates for the position left by Jeffries and the best candidate so far is Fran Horowitz.
At those times, other teen fashion lines are also falling. Gap and American eagle all fell at around the number of 2 to 5 percent in their last QE that year but the aforementioned brands faced their falls well as they immediately come up with a working gimmick giving them a rise as a result: a model that we should always look up to.
Nowadays, the company is still looking to up its sales from the ashes of the lost. The company is going to take the rebranding route, still maintaining the same demographics but with a different style and approach. Although the company is still inconsistent, Abercrombie and Fitch is still on a deep process of healing but surely, it will be back on track.
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