Abercrombie and Fitch have got a wide range of relaxed wear for men
Since going public at the end of 1996, Abercrombie and Fitch has kept a high public profile through its sexually-orientated marketing and numerous law-suits. Initially the brand was portrayed as a "near-luxury" due to the high quality of materials used to manufacture its goods. With the opening of its flagship Fifth Avenue store in 2005, the firm decided it had reached the level of a luxury brand – a trait which has been the bedrock of its international expansion since. Looking at a chart of the company’s share price, we can see that the stock began to rise significantly on the back of the Fifth Avenue opening, and self-proclamation as "Casual Luxury". A&F peaked at a price of $82.65 in mid 2007, with a collapse in share price one year later to under $20. Same store sales plummeted by 30%, as the firm continued to charge high prices while competitors began to successfully mimic its styles and marketing practices, leading to a sharp decline in market value.
The initial outperformance of Abercrombie and Fitch Sverige's global expansion has meant that the recent declines still allow this venture outside of North America to be very profitable. Yet, A&F HQ has acknowledged the limitations to this international growth, which is being reflected in the sales figures. No new flagship store openings have been announced for the A&F brand, while the recent Dublin and Seoul stores faced a great reduction in scope. 40 more Hollister stores are due to open outside the USA next year, with only 25 more in 2014. In essence, A&F recognize the benefits from an international operation but have learned that less aggressive opening schedules and less cannibalization (eating into its own regional success) is the way forward. Coupled with our domestic economic woes, this would explain the delay in opening the Dublin store and also why the store is much smaller than initially anticipated.
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So, what does all this look like? It looks like social media, which is almost inherently interpretive and co-creative. It looks like Occupy Wall Street, which was radically decentralized and subjective but still managed to become a permanent part of our cultural colloquial. It looks like cloud computing. It looks like an Andy Warhol painting. It looks deconstructed and raw. It looks like the kind of art that seems absolutely nonsensical until you think about it, interpret it and read into it. What used to be called negative space is now referred to as room for exploration – and Millennials are the explorers. What used to be called imperfect is now said to be evolving – and Millennials are guiding its growth. What used to be called amorphous is now called a shape with infinite possibilities – and Millennials are the architects. Indeed, JRR Tolkein said it best when he wrote: not all who wander are lost – and Millennials are wandering, but they're not lost. And, what they don't want is for a brand like Abercrombie & Fitch to tell them what they should look like, how they should act or who they should be.