Abercrombie & Fitch Downward Spiral Continues
Start writing a post
Sports

Abercrombie & Fitch Downward Spiral Continues

Despite rebranding efforts, company continues to tank

27
Abercrombie & Fitch Downward Spiral Continues
Independent

After another disappointing quarter of results from Abercrombie & Fitch (ANF), it is fair to question whether this retailer will regain its prominence in the teen and young adult apparel industry. Just a few years ago, ANF was a must for teens who were entering the rebellious stage of their lives. In response to this rebellion, ANF was famous for its provocative advertising aimed at teens in an effort to garner a reputation for fulfilling teens needs of clothing that fits their style.

Fast forward a few years later and ANF appears to be lost with no direction in correlating a strong rebound. In their latest quarter, ANF saw same-stores sales decline at an awful 4% rate. Although analysts were expecting worst, the fact ANF same-stores continue to decline should be worrisome for investors. After establishing goals for an improving second half of the year, ANF management lowered its full-year guidance as they believe the challenges of improving sales will ensue as the fiscal year progresses.

Prior to the earnings report, ANF’s stock enjoyed a solid rebound during the month of July and throughout August, notching upward nearly 26%. Much of this rise was due to investors false hope that the company will post improving numbers during the back-to-school season. As company earnings continue to falter, ANF has swiftly consolidated stores and has aggressively focused on rebranding its image from teen apparel to millennials in their twenties.

One solid area of growth in what was an absolutely tough quarter for ANF was their e-commerce business. E-commerce sales increased but lagging sales in physical store locations continue the narrative of the demise of the mall and physical store shopping.

ANF is presently offering a variety of discounts in an effort to boost sales volume. While the intended goal is to create additional consumer demand, anytime a company discounts significantly over a long period of time indicates they are willing to sacrifice higher profits for increased sales traffic. With retail spending already at anemic levels, offering more enticing discounts might be the only thing holding this retailer up.

ANF is struggling mightily to attract customers, which is never a good sign for a retail company. While many are pegging for an ANF comeback, I would take a conservative approach and wait for better results before pinning my hopes on a turnaround.

Report this Content
This article has not been reviewed by Odyssey HQ and solely reflects the ideas and opinions of the creator.
​a woman sitting at a table having a coffee
nappy.co

I can't say "thank you" enough to express how grateful I am for you coming into my life. You have made such a huge impact on my life. I would not be the person I am today without you and I know that you will keep inspiring me to become an even better version of myself.

Keep Reading...Show less
Student Life

Waitlisted for a College Class? Here's What to Do!

Dealing with the inevitable realities of college life.

84636
college students waiting in a long line in the hallway
StableDiffusion

Course registration at college can be a big hassle and is almost never talked about. Classes you want to take fill up before you get a chance to register. You might change your mind about a class you want to take and must struggle to find another class to fit in the same time period. You also have to make sure no classes clash by time. Like I said, it's a big hassle.

This semester, I was waitlisted for two classes. Most people in this situation, especially first years, freak out because they don't know what to do. Here is what you should do when this happens.

Keep Reading...Show less
a man and a woman sitting on the beach in front of the sunset

Whether you met your new love interest online, through mutual friends, or another way entirely, you'll definitely want to know what you're getting into. I mean, really, what's the point in entering a relationship with someone if you don't know whether or not you're compatible on a very basic level?

Consider these 21 questions to ask in the talking stage when getting to know that new guy or girl you just started talking to:

Keep Reading...Show less
Lifestyle

Challah vs. Easter Bread: A Delicious Dilemma

Is there really such a difference in Challah bread or Easter Bread?

50967
loaves of challah and easter bread stacked up aside each other, an abundance of food in baskets
StableDiffusion

Ever since I could remember, it was a treat to receive Easter Bread made by my grandmother. We would only have it once a year and the wait was excruciating. Now that my grandmother has gotten older, she has stopped baking a lot of her recipes that require a lot of hand usage--her traditional Italian baking means no machines. So for the past few years, I have missed enjoying my Easter Bread.

Keep Reading...Show less
Adulting

Unlocking Lake People's Secrets: 15 Must-Knows!

There's no other place you'd rather be in the summer.

985999
Group of joyful friends sitting in a boat
Haley Harvey

The people that spend their summers at the lake are a unique group of people.

Whether you grew up going to the lake, have only recently started going, or have only been once or twice, you know it takes a certain kind of person to be a lake person. To the long-time lake people, the lake holds a special place in your heart, no matter how dirty the water may look.

Keep Reading...Show less

Subscribe to Our Newsletter

Facebook Comments