Business Analysis: Abercrombie and Fitch

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Being an upscale industry, Abercrombie and Fitch would appear to be a successful corporation. Although the company was once successful for a number of years, it’s apparent that there has been a significant decline in its overall appeal and how much revenue the company acquires each year. With just over 1,000 retail stores in the U.S., Canada, and Europe, Abercrombie and Fitch has thrived to be one of the most avid corporate extensions.

While the company may be seeing the start to its decline, past years are proof that Abercrombie and Fitch have made a good name for themselves. How does the industry operate one might ask? There are many sides to the coin when it comes to determining how this company functions, but let’s start with its employees. Rumor has it that many of the company employees are hired strictly for their looks. To please consumers of its products, Abercrombie and Fitch seems to adorn itself with innovative styles and sex appeal. With young adult models and sensual perfumes, Abercrombie and Fitch pulls in its consumers by the dozen.

Abercrombie and Fitch has definitely seen better days. In a recent poll, A&F was considered “the worst recession brand” by Time Magazine. During this economic downfall, the A&F industry refused to lower their prices, resulting in a 30% loss of sales. Although the company still remains up and running, they have definitely been affected by the economic recession.

The Abercrombie and Fitch industry mainly has mall-based stores, but in addition, consumers can buy their products online or through catalog orders. Although there is an obvious decline in sales, and the U.S. is currently undergoing a drastic recession, Abercrombie and Fitch has began expanding their retail stores in other ...

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...Company Financial Statements (ANF): Annual Income Statement - MSN Money ." Money: Personal finance & investing news & advice - MSN Money. N.p., n.d. Web. 2 May 2011.

"American Eagle Outfitters Incorporated - Company Financial Statements (AEO): Annual Balance Sheet - MSN Money ." Money: Personal finance & investing news & advice - MSN Money. N.p., n.d. Web. 2 May 2011.
"ABERCROMBIE & FITCH CO-CL A (ANF:US): Financial Statements - BusinessWeek." Investing & Stock Research by Company and Industry - BusinessWeek. N.p., n.d. Web. 2 May 2011. .

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