Abercrombie & Fitch focuses on providing high-quality merchandise that compliments the classic American lifestyle. (A&F official website) Over the last ten years A&F has proved to be one of the largest growing clothing companies in the industry. In 1993 when A&F was rejuvenated, three years before becoming public, they produced 85.3 million dollars in sales; nine years later in 2002 the company sold 1,364.9 billion dollars, which is nearly fifteen times an increase. (Hoover's company profiles).
Operating areas contributing to success.
Abercrombie & Fitch had a sales increase of ten percent to 1.36 billion dollars in 2002 compared to 2001 when sales were at 1.24 billion dollars for the 2001 fiscal year. The increase in sales in mainly attributed to the addition of 137 stores offset by a nine percent comparable store sales decrease. (ANF Annual Report) The addition of new and comparable store sales led to net sales of 215.4 million dollars. There has been a steady decline in men's business, while women's business has consistently increased leading them to be fifty-five percent of total adult business. (ANF Annual Report) Net Income increased by 10.5 million dollars reaching 168.672 million dollars in 2002. The steady increase in net income gives A&F the options of using cash to pay for something such as deferred income tax liabilities, or accrued expenses, which they did in 2002. Abercrombie & Fitch does not spend as much on advertising as most of it's competitors, but they do come out with a catalog every quarter featuring half naked women and men as well as an interview with a porn star in one issue, and how to play drinking games. (Dial).
How Abercrombie & Fitch Compete.
During late July of 2000, Abercrombie & Fitch opened four new chain stores that provided surfer-themed clothing. Hollister Co. now has seventy-one stores in thirty-three states. (Earnest) A keen move made by CEO Michael Jeffries to penetrate a market that did not have one dominating force.
