Abercrombie & Fitch (A&F) is an American lifestyle retailer that focuses on casual wear. Its headquarters are in New Albany, Ohio. The company operates three offshoot brands: Abercrombie Kids, Hollister Co., and Gilly Hicks. As of February 2020, the company operated 854 stores across all its brands.
History
The original Abercrombie & Fitch was founded in 1892 in New York City by David T. Abercrombie as an outfitter for the elite outdoorsman. Ezra Fitch—a wealthy lawyer, real estate developer, and devoted Abercrombie customer—bought a significant stake in the business in 1900. In 1904, it was incorporated and renamed "Abercrombie & Fitch Co." Fitch eventually bought out Abercrombie's share of the business, becoming its sole owner from 1907 to 1928. The company was an elite outfitter of sporting and excursion goods, particularly noted for its expensive shotguns, fishing rods, fishing boats, and tents. It outfitted Theodore Roosevelt's safari and Admiral Richard E. Byrd's expedition to Antarctica. Ernest Hemingway was also a regular customer; the gun with which he committed suicide in 1961 was purchased from Abercrombie and Fitch. Following Hemingway's death, his wife placed several of his guns on consignment with the company.
By the 1970s, A&F was struggling to compete with lower priced competitors while trying to maintain its high-end image. It was known for holding an extensive inventory of lavish items, but high operating expenses forced A&F to shed its highest priced items, such as an $18,000 () gold and onyx chess set. Cash flow problems forced the company to also cut its inventory of moderately priced products.
In 1976, Abercrombie & Fitch filed for Chapter 11 bankruptcy protection. In 1977, the company closed its New York flagship store at Madison Avenue and East 45th Street.
While Abercrombie & Fitch went out of business during its bankruptcy, the brand survived: in 1978, Oshman's Sporting Goods, a Houston-based retail chain, bought the defunct firm's name and mailing list for $1.5 million (equivalent to $ million in ). Oshman's relaunched the company as a mail-order retailer specializing in hunting wear and novelty items. Retail stores were also opened in Beverly Hills, Dallas, and (by the mid-1980s) New York City.
In 1988, Oshman's sold the brand and its operations to Columbus, Ohio-based The Limited (parent company of several retail clothing chains, including Victoria's Secret). Under The Limited, which later rebranded itself as L Brands, A&F gradually shifted its focus to young adults, was later spun off as a separate, publicly traded company, and eventually grew into one of the largest apparel firms in the United States.
Mike Jeffries became CEO in the 1990s and refocused the brand on the teen customer. In 1998, the company launched a children's product line, Abercrombie Kids, for 7-14 year olds. In 2000, A&F launched its Hollister Co. subsidiary, "a new concept focused on the optimistic, laidback California lifestyle".
2007–present
The company overhauled its merchandise mix and closed several underperforming stores. Longtime CEO Michael Jeffries resigned in December 2014, after 22 years with the company. Fran Horowitz took over as CEO in February 2017.
To combat competition from more downscale fast-fashion rivals like Forever 21 and H&M, A&F announced light changes to its image. A&F pledged to reduce the level of its sexually charged style of advertising and instead focus more on customer service. A&F also changed the job title of store employees from "models" to "brand representatives", and allowed a less tightly controlled, more individualistic dress code. Additionally, A&F declared that "brand representatives" would focus more on customer service (by offering to help serve customers), versus the past reputation of displaying aloofness toward them. In 2015, the company signaled that it would begin implementing these changes. By that May, store models were no longer forced to wear Abercrombie-branded clothes.
According to recent reports from Q1 2021, it was the "group’s best second-quarter operating income and margin since 2008, with sales exceeding pre-pandemic levels."
Market value
In April 2017, the company was described by Standard & Poor's as having a market value of $650 million and about $420 million cash on hand. In May 2017, the company was in talks to sell itself. Potential buyers included rivals Express (a fellow former L Brands subsidiary) and American Eagle Outfitters, and private equity firm Cerberus Capital Management. However, negotiations failed by early July, contributing to a 21% drop in A&F's stock price.