financial analysis for A&F
FIRM ANALYSIS
Profile
Abercrombie and Fitch is an international fashion retailer selling apparel, fragrance and luxury products at consumers aged 7 to 25. The brand describes its retailing niche as “casual luxury”. The company has a strong brand image based on a provocative communication and a specific in-store experience well suited to the cool lifestyle it advocates. The company operates under four different brands and via U.S. based stores, international stores (in Canada, Europe and Asia) and online activities (Direct-to-Consumer).
The original Abercrombie and Fitch was established in 1892 in downtown Manhattan, NYC, as a sporting and outdoor goods retailer. After filing for Chapter 11 bankruptcy in 1976, the company was bought back by Oshman’s Sporting Goods and later acquired by The Limited in 1988, which took A&F public on the NYSE in 1996. The nomination of Michael S Jeffries as president in 1992 marked a radical turn towards what the company and the A&F brand are today.
Whether it is via physical stores or Direct-to-Consumer, domestically or internationally, the apparel industry is highly competitive. With a considerably large offer and low switching costs, consumers have a real power over apparel retailers and are consistently looking for the best quality for the cheapest price, unless they consider a certain loyalty to a particular brand. Therefore, differentiation is usually sought after in brand recognition (see below for A&F), price, store location and quality of the products.
A&F’s main competitors are American Eagle Out-fitters , Aeropostale or The Gap , which are all somewhat cheaper alternatives with a less aggressive branding policy (more detailed analysis of A&F’s competitors in the Peer Comparison section). To differentiate from its competitors and obtain a sustainable advantage, A&F relies on two key drivers: its brand image and a specifically related in-store experience. The young all-American cool, classic
Profile
Abercrombie and Fitch is an international fashion retailer selling apparel, fragrance and luxury products at consumers aged 7 to 25. The brand describes its retailing niche as “casual luxury”. The company has a strong brand image based on a provocative communication and a specific in-store experience well suited to the cool lifestyle it advocates. The company operates under four different brands and via U.S. based stores, international stores (in Canada, Europe and Asia) and online activities (Direct-to-Consumer).
The original Abercrombie and Fitch was established in 1892 in downtown Manhattan, NYC, as a sporting and outdoor goods retailer. After filing for Chapter 11 bankruptcy in 1976, the company was bought back by Oshman’s Sporting Goods and later acquired by The Limited in 1988, which took A&F public on the NYSE in 1996. The nomination of Michael S Jeffries as president in 1992 marked a radical turn towards what the company and the A&F brand are today.
Whether it is via physical stores or Direct-to-Consumer, domestically or internationally, the apparel industry is highly competitive. With a considerably large offer and low switching costs, consumers have a real power over apparel retailers and are consistently looking for the best quality for the cheapest price, unless they consider a certain loyalty to a particular brand. Therefore, differentiation is usually sought after in brand recognition (see below for A&F), price, store location and quality of the products.
A&F’s main competitors are American Eagle Out-fitters , Aeropostale or The Gap , which are all somewhat cheaper alternatives with a less aggressive branding policy (more detailed analysis of A&F’s competitors in the Peer Comparison section). To differentiate from its competitors and obtain a sustainable advantage, A&F relies on two key drivers: its brand image and a specifically related in-store experience. The young all-American cool, classic