TIMELINE Abercrombie & Fitch Essays - Fashion, Abercrombie Fitch

TIMELINE Abercrombie & Fitch Essays - Fashion, Abercrombie Fitch TIMELINE Abercrombie & Fitch 1892 David. T. Abercrombie opened Abercrombie & Co. 1904 Ezra Fitch, became a partner 1940 The largest sporting goods store in the country 1977 After a tumultuous decade, the chain is bought by Oshman's Sporting Goods 1988 The Limited purchased the struggling store the brand is repositioned to casual clothing 1992 Michael Jeffries was hired 1996 An IPO was offered and the company became independent from the Limited 2000 Hollister, a sub-b was launched 2002 The company upsets the Asian community with racist T-shirts 2003 traditional Coalition for the Protection of Children protest of A&F's "Christmas Field Guide." 2005 A&F settles a class action suit f $50 million because of racist hiring people 2006 Salon Magazine in which he expressed some hits on A&Fs target audience. 2007 Despite controversy A&F earned $3.75 billion in revenue 2008 Lack of innovation, refusal to adjust prices and the recession blamed for 80% drop in A&F staff 2009 A&F 2nd Quarter profits declined 134%, competitor Aropostale was up 83% 2010 The economy begins to improve and profits rise 12% 2011 Amidst more controversy and lawsuits, shares fall 22% 2014 Profits continue to decline, shareholders question CEO Jeffries strategy and vote against any raise in his salary. Brand Analysises Abercrombie & Fitch Brand was established in June, 1892 Original parent brand which was geared toward outdoor lifestyle Slightly older demographic 18-22 year olds Clothing line perceived as having a luxurious, upscale feel Brand was acquired in 1988 and repositioned as more fashion forward casual clothing 250 Locations Abercrombie Brand introduced in 1998 Target population 7-14 years old Trademarked term classic cool is used to describe store and online products 154 Locations Brand has accessories line which includes fragrances and colognes, etc. Company may have plans to expand access to brand in overseas countries Controversial humor tee shirt line that has drawn criticism and controversy. Saying that appear on clothing are deemed degrading and negative. Hollister Co. Brand launched in July, 2000 Target audience 14-18 years old Clothing style features SoCal feel Product is offered at lower price point than traditional parent brand Abercrombie & Fitch Generated revenue in 2010 of 1.5 Billion 578 Locations Is sold internationally Sells accessory line of colognes, perfumes, costume jewelry, flop fops, etc. Website intra-linked to other Abercrombie brands, like Gilly Hicks, etc. Gilly Hicks Brand launched January, 2008 Clothing focus on intimate apparel for primarily women 28 Locations Customers can continue to buy Gilly Hicks through Hollister stores Brand theme is based upon the Sydney, Australia lifestyle Gilly Hicks stand alone stores will be closed down by end of first quarter, 2014 Customers can continue to buy through direct to customer channels (online) - SWOT ANALYSIS Strenghts Company has had a successful financial history Well known, industry leader Brands marketed toward consumers who have access to discretionary income via parents, significant others, etc. Consumer base usually graduates up to next level of clothing Established reputation of providing quality clothing Strengths Opportunities Weaknesses Loose lipped, careless CEO Brand has lost credibility on Wall Street and Main Street Overly titillating print & electronic ads Company doesnt understand its consumer base Board of Directors losing confidence in CEO Mike Jeffries Major shareholders (Equity Capital) looking to remove CEO W TO Primary factors Oportunities Needs to explore and strategize regarding previously ignored markets, e.g., plus sizes Market the company itself internally and externally; not just the clothing. Utilize current employees to create campaigns which give back to surrounding communities Redesign stores to feel more friendly to non- typical prospective consumers Threats Threats Publics perception of company being insincere about embracing diversity Allowing their social media sites to be rest stops instead of destinations; see Facebook, Twitter. Increasing retail theft and counterfeit clothing Not focusing on increasing business revenues through online sales Weaknesses Law Suits: 2000 lawsuit " look policy" 2003 lawsuit settle for $2.2 mil 2003 lawsuit " not paying overtime" 2003-2009 several discrimination against "applicant other than whites" 2004 lawsuit settle for $50 million