The Business of Fashion
Agenda-setting intelligence, analysis and advice for the global fashion community.
Agenda-setting intelligence, analysis and advice for the global fashion community.
NEW ALBANY, United States — Abercrombie & Fitch Co.'s stock plunged after the release of earnings — another sign that apparel retailers' recent strength could be short-lived.
Comparable-store sales, a measure that shows how established retail locations are performing, fell short of estimates across the board for the teen apparel company. Total revenue also fell slightly short in the latest quarter, sending shares down as much as 14 percent, the most in more than a year.
While Abercrombie has left a lengthy sales slump behind in recent quarters, investors may be concerned that its current growth is starting to lose momentum. With the US economy steaming forward, Wall Street has demonstrated little tolerance for retailers that have shown any signs of slowing down.
Total same-store sales rose 3 percent, below the 3.7 percent increase forecast by Consensus Metrix. The Abercrombie and Hollister brands also failed to meet estimates.
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The 126-year-old retailer has worked to renew its image, pivoting toward seasonal clothing and dialling back racy ads that featured half-clad models. In an interview, chief executive officer Fran Horowitz said the company is pleased with its progress in overhauling the brand.
Abercrombie also opened two new smaller-format stores at the campuses of University of Southern California and Ohio State University stores to court core customers.
By Kim Bhasin; editors: Anne Riley Moffat and Jonathan Roeder
In 2020, like many companies, the $50 billion yoga apparel brand created a new department to improve internal diversity and inclusion, and to create a more equitable playing field for minorities. In interviews with BoF, 14 current and former employees said things only got worse.
For fashion’s private market investors, deal-making may provide less-than-ideal returns and raise questions about the long-term value creation opportunities across parts of the fashion industry, reports The State of Fashion 2024.
A blockbuster public listing should clear the way for other brands to try their luck. That, plus LVMH results and what else to watch for in the coming week.
L Catterton, the private-equity firm with close ties to LVMH and Bernard Arnault that’s preparing to take Birkenstock public, has become an investment giant in the consumer-goods space, with stakes in companies selling everything from fashion to pet food to tacos.