Current Location
201240 Fall 2012 BUSI 530-B21 LUO
Discussion Board
Forum: Forum 1 (Module 1)
Thread:
Abercrombie &
Fitch Post:
Abercrombie & Fitch
Author:
Anjerrika Anthony
Posted Date:
August 25, 2012 3:04 AM
Status:
Published
Abercrombie & Fitch offers wise investors the opportunity to grow and invest in a company that
demonstrates consistency and tenacity through their growth process. Abercrombie & Fitch ability to
stay in the apparel industry since the late 1800s, and still dominate the industry, displays their
innovative way of capturing the traditions of the old with a dash of the new. Its attractiveness to teens,
which serve as majority of their client base, creates a steady stream of revenue for the company.
“According to The NPD Group consumer data, collectively, this group accounts for approximately 31% of
total apparel spending, with the "sweet spot" being teenagers, who represent about 18%.” The
company has continued to increase in revenue for the last four years and they are predicated to reach,
“921.2 Million by the end of the 1Q of 2013.”
Abercrombie & Fitch was ranks #1 in the apparel and footwear industry in 2010. Reports of a decrease
in location may affect sales but online shopping is a growing trend, which allows producers to utilize
their monies typically invested in brick and mortar into other areas of the business such as marketing for
online products. Abercrombie ability to sells their product in through online markets, apparel stores
makes it an investor’s gold mine. Because their name sells itself and it maintains a reputation amongst a
consumers base were monies are spent by teens, young adults, and parents it is a great investment. The
markets continue to demonstrate that consumers desire more purchasing power with a variety of ways
to purchase items.
However, Abercrombie & Fitch does not report all positive reports across the board on the contrary they
are losing cash flow but increases in overall capital investments. They contribute to the overall financial
success of the 2011 increase in sales for the apparel industry. “This is of way to gather Apparel sales
increased 3.8% in 2011, reflecting gains across most channels, according to The NPD Group Inc.
consumer estimated data. Sales at manufacturer-owned stores rose 14.7%, followed by 6.5% and 5.6%
increases in the specialty and off-price channels, respectively. Sales rose only 1.4% in the mass channel,
