For the first time in three years, American fashion label Abercrombie & Fitch can present a slight turnover increase for its stores that have been around for more than 12 months, a first sign that the fashion company’s new strategy is paying off.
Particularly Hollister performs well
Abercrombie & Fitch’s like-for-like turnover grew 1 % in the past quarter, entirely thanks to Hollister’s 4 % like-for-like turnover increase. The brand Abercrombie & Fitch’s turnover dropped 2 %, while analysts had expected a minimal like-for-like turnover drop.
The company’s fourth quarter net turnover, excluding exchange rate fluctuations, grew 2 % to 1.11 billion dollars (1.02 billion euro). If exchange rates are taken into account, then it would have dropped 1 %, which is still better than forecasts.
It is no surprise that Hollister performed well, because A&F decided to focus a lot of resources into the brand’s positioning. Plenty of stores have been remodeled already and that process will continue this year.
Mike Jeffries’ departure as CEO sparked these changes, after his remarks placed the company in the eye of the storm. Ever since he left, the company altered its stance and approach, lowering the dependency on the brand’s logo, which was exactly the reason why the brand flourished in the late 90’s.
