How Abercrombie Pulled Off One Of Retail’s Biggest Comebacks

330,970
0
Published 2024-06-13
Over the last decade, Abercrombie & Fitch pulled off one of retail’s greatest comebacks, transforming from a dying mall brand into a Wall Street darling. Its stock surged 24% on May 29th after reporting yet another strong quarter. But the turnaround didn’t happen overnight. Watch the video above to learn more about how CEO Fran Horowitz changed the business and defeated competitors like Gap, Banana Republic, American Eagle Outfitters and Urban Outfitters.

Chapters:
0:00 Introduction
1:15 Chapter 1 - Product
4:15 Chapter 2 - Rebrand
7:10 Chapter 3 - Footprint
8:35 Chapter 4 - What’s ahead

Produced by: Gabrielle Fonrouge
Edited and Shot by: Ryan Baker
Camera by: Andrew Evers
Animation by: Josh Kalven
Senior Managing Producer: Tala Hadavi
Additional Footage: Getty Images

» Subscribe to CNBC: cnb.cx/SubscribeCNBC
» Subscribe to CNBC TV: cnb.cx/SubscribeCNBCtelevision

About CNBC: From 'Wall Street' to 'Main Street' to award winning original documentaries and Reality TV series, CNBC has you covered. Experience special sneak peeks of your favorite shows, exclusive video and more.

Want to be a successful, confident communicator? Take CNBC’s new online course Become an Effective Communicator: Master Public Speaking. We’ll teach you how to speak clearly and confidently, calm your nerves, what to say and not say, and body language techniques to make a great first impression. Sign up today and use code EARLYBIRD for an introductory discount of 30% off through July 10, 2024: cnb.cx/4aryNgM

Connect with CNBC News Online
Get the latest news: www.cnbc.com/
Follow CNBC on LinkedIn: cnb.cx/LinkedInCNBC
Follow CNBC News on Instagram: cnb.cx/InstagramCNBC
Follow CNBC News on Facebook: cnb.cx/LikeCNBC
Follow CNBC on Threads: cnb.cx/threads
Follow CNBC News on X: cnb.cx/FollowCNBC
Follow CNBC on WhatsApp: cnb.cx/WhatsAppCNBC

#CNBC

How Abercrombie Pulled Off One Of Retail’s Biggest Comebacks

All Comments (21)
  • @electrikoptik
    The people that wore Abercrombie at its peak are all now in their mid/late 30's to early 40's.
  • @Ivanz4sdrive
    I hadn't been to an Abercrombie & fitch store since mid 2000's until 2022. I realized the whole brand changed. It is definitely not the same store. Ditching over-branding was the play.
  • @gc7214
    I recently visited an A&F store and was surprised at how much it had changed. Not only were the styles more adult, but the staff was friendly and welcoming. Their trousers fit beautifully and the clothes in general are more work-friendly.
  • @b1tchycvnt
    it’s because they started making stuff that’s actually stylish
  • @maxarvlo
    I stopped at an A&F on impulse one day at the mall and I was blown away, this has become the place that I almost exclusively shop for clothes now. I’m a short guy and I have NEVER been able to find jeans, button ups and t-shirts that fit me so well. I love the quality of the materials and construction of the clothes is so well done, its nice to be able to wash a piece of clothing multiple times and not have it be ruined after 1-2 washed (H&M, Zara). It’s definitely on the pricier side of clothing retailers but it is well worth the price. I’d rather spend more on less clothes that are very stylish, feel more timeless and are good quality.
  • @sciencevssara
    I think part of their success in recent years is they've become a less expensive alternative to trendy, influencer-driven stores like Aritzia and Everlane, that are known for their decent quality and more tailored, minimalist looks. They have a lot of similar apparel, particularly their cotton T-shirts and trousers. A&F also still has A+ denim that rivals premium brands like Agolde or Citizens of Humanity in quality and style, but for a way lower price point.
  • @gimmins
    It’s kinda comical that the CEO shows up on the interview not wearing her own brand of clothes, but Chanel 😅
  • @zephyr8653
    The move away from giant logos is great. Minimal is the trend now.
  • @MsDelianne
    Current A&F is the one of the few brands that has petite sizing, stylish clothing for pretty good quality at reasonable prices. I’m a millennial that prefers more modest clothing that consists of more natural fibers and A&F is one of the few brands that actually deliver this. Other brands like Zara have clothes made of polyester. I’d rather pay the $40 extra dollars for cotton or linen.
  • A&F used to remind me of Rainforest cafe in the mall. I went in there recently though and was pleasantly surprised at how much I liked their graphic tees and the quality and price. They completely revamped their company and presentation
  • @maduross
    They made clothes in all shapes and sizes that people actually wanna buy. Saved you 10 minutes.
  • @chuck8772
    9 times out of 10 I would avoid products promoted by influencers
  • @HauteHorizon
    Do the stores still smell like they bathed all the clothes in cologne?
  • @thekingdemetri
    I bought ANF stock in 2022 at a cost basis of $15 and sold most of it at a 50% gain. I saw a potential rebound to $75 in my thesis but never imagined this performance. Fran is going a great job.
  • @Howard24
    Their designs became more mature, and their quality stayed while keeping prices reasonable. The new aesthetic of Abercrombie is akin to brands like ALD, Kithx etc which allows them to capture a market share of those that want that aesthetic but don't want to or can't afford ALD, Kith, etc. Very smart move imo and exactly what is in in fashion right now.
  • @heyjaydance
    I’m a millennial and I shop at A&F because they make quality clothes that are on trend that FIT. I’m a short king and they’re one of the only accessible brands that sell clothes that fit me well. The price is also right. They have online sales often making their prices competitive to retailers like Zara but with far better quality. This video is on point. Their current success is knowing how to make a good product.
  • @tonykim5114
    Awesome video, Gracias,! I think the market is over-heated. And I am concerned that people are focusing less on fundamentals and just chanting the mantra of dollar cost averaging and driving the market higher without considering fundamentals. It is a catch-22 for me. I mean I like crypto prices going higher but I also hate buying over-priced market and ETFs. Personally, I have stopped buying growth ETFs- they are ridiculously over-valued. Dividend crypto and ETFs are a little better but they are still over-valued. There is some hope with small and mid caps. I am not sure they are undervalued but at least they are less over-valued..This pattern offers a valuable insight for strategic planning. Despite these trends, i have delve deeply into active trading and managed to grow a nest egg of around 100k to a decent 432k in the space of a few months... I'm especially grateful to Haley Eleanor , whose deep expertise and traditional trading acumen have been invaluable in this challenging, ever-evolving financial landscape.
  • @element720
    Great to hear! I used to love A&F in college. With the decline of brick & mortar retailers of late, I was hoping they wouldn’t fall victim. Weird to think that my two kids can soon sport their clothing, as can I
  • @maggyxchuu
    I never wore Abercrombie in high school but now being in my 30s I LOVE it, easily one of my favorite brands because the FABRICS are so incredibly soft. And good quality. When you wash the shirts, jeans, and crew necks, the fabric is still just as soft!
  • @Varanis_Ridari
    The Seattle store in the thumbnail of this video no longer exists, lol