Abercrombie&ftich history

Date：08/26/2008

The company was originally established as Abercrombie Co. by David T. Abercrombie on June 4, 1892, as a small waterfront shop at No.36 South Street in downtown Manhattan, New York. Wealthy New York lawyer Ezra Fitch was one of his regular customers. In 1900, Fitch left his law practice and bought a major share into the growing company, thus becoming co-founder. Afterwards, Abercrombie Co. moved into larger quarters at 314 Broadway, and Fitch began to implement experimental ideas to renovate the store.In 1904, Fitch's surname was incorporated and so the official name was changed to Abercrombie & Fitch Co.. Partnership between the founders did not end well. The two men, envisioning different ideas for the future of A&F, quarreled frequently while the company continued to grow. Fitch wished to expand the company's appeal to the general public, whereas Abercrombie wanted to continue selling professional gear to professional outdoorsmen.As a result, Abercrombie sold his share in the company to Fitch in 1907 and returned to manufacturing outdoor goods.Fitch continued the business with other partners and was able to direct the company as he pleased for the first time.
an ambient atmosphere, accompanied by outdoor goods and campfire as if it was to be used. Part of Fitch's strategy to expand the company included the creation of a mail-order catalog. In 1909, Abercrombie & Fitch Co. mailed over 50,000 copies of its 456 page catalog worldwide (a staggering and costly amount of publication at that time, each cost a dollar to produce). The catalog featured outdoor clothing, camping gear, articles, and advice columns. The cost of the catalog nearly bankrupted the company, but the catalogue proved to be a profitable marketing device. Within the store, the catalog was available to customers for free. By 1910, the company became the first store in New York to supply clothing to women as well as men. In 1913, after moving into Reade Street, which was not a convenient shopping location for women, the store relocated to a more fashionable and easily accessible midtown address just off Fifth Avenue at 55/57 West 36th Street, expanding its inventory to include sports' clothing.In 1917, the store moved yet again into a twelve-story building at the corner of Madison Avenue & east 45th Street.The store occupied the entire available space (12 stories), thus it became "the largest and most impressive outdoor gear and sporting goods store in the world". Outside, a sign proclaimed, "Where the Blazed Trail Crosses the Boulevard."
The Madison Avenue store included many different amenities. The basement roomed a shooting range while on the mezzanine (main floor), there was paraphernalia for skiing, archery, skin-diving, and lawn games. The second through fifth floors were reserved for clothing that was suitable for different climate or terrains. On the sixth floor, there was a picture gallery, a bookstore (focused on sporting themes), a watch repair facility and a golf school (fully equipped with a resident professional). The seventh floor was recognized as the finest gun department in the world. It included a gun room, stuffed game heads, about hundreds of shot guns and rifles, and a dog and cat kennel. The eighth floor was dedicated solely to fishing, camping, and boating. It also included a desk that belonged to a fly-and bait-casting instructor who gave lessons at the pool, which was located on the roof. The fishing section of the store alone was stocked with over 48,000 flies and over 18,000 fishing lures. On the roof, Fitch had ordered the construction of a log cabin; he often used it as a townhome. Beside it, there was a casting pool where customers tested the company's collection of rods and flies.
Abercrombie & Fitch Co. became the first American store to import Mahjong.Ezra Fitch imported the game after a female customer looked for the game that she had played in China. He went to China for the game and translated the instructions into English. Mahjong became a fast selling product, and Abercrombie & Fitch became the epicenter of the Mahjong craze.The company sent emissaries to Chinese villages to buy as many Mahjong sets as possible and eventually sold over 12,000 sets. In 1927, Abercrombie & Fitch outfitted Charles Lindbergh for his historic flight across the Atlantic Ocean.By now, the company drew in accounts with highly prominent figures
In 1928, Fitch retired from the company and sold his shares to his brother-in-law, James S. Cobb. Soon Cobb became president and Otis L. Guernsey, an employee of the store, became vice president.Cobb acquired for the company Von Lengerke & Detmold and Von Lengerke & Antoine (the Chicago branch). Von Lengerke & Detmold was a well-respected company in New York (maker of fine European-made sporting guns and fishing tackle) which specified in the same industry as Abercrombie & Fitch. Cobb also acquired another gunsmith company, Griffin & Howe, and both Von Lengerke & Detmold/Griffin & Howe merchandise were placed in stock in the Madison Avenue store. At this point A&F also provided equipment for polo, golf, and tennis. By 1929, net sales was reported at $6.3 million USD with an income of $548,000 USD. Also during the 1920s, a summer-only store was opened in Hyannis, Massachusetts.
During the Great Depression, the company's revenue decreased, with sales plunging towards $2,598,925 in 1933. It is believed that Guernsey's negotiations with Abercrombie & Fitch saved it from collapse. A&F recovered in the following years and resumed paying dividends in 1938. During the year, sales from guns accounted for 40% of total sales at the Madison Avenue store. Clothing, shoes, and furnishings accounted for 45%, while inventory was valued at about 40% of annual sales (reflecting A&F's readiness to meet customer demands). 10% of the business was credited towards the catalogue mail orders.Abercrombie & Fitch Co. continued to expand. The company rarely sold products with a name brand during this period, preferring to label nearly everything with their own logo. In 1939, it adopted the slogan, "The Greatest Sporting Goods Store in the World". It offered the world's most valuable collection of firearms and had a massive assortment of fishing flies to accompany all of rods, reels, and other fishing tackle. Sporting personas of every field imaginable all found every conceivable type of gear.
The highest record for net profit was at $682,894 in 1947.Abercrombie & Fitch opened a store in San Francisco in 1958 and soon opened small winter-only stores in Palm Beach, Florida and Sarasota, Florida, and summer stores in Bay Head, New Jersey, and Southampton, New York.Guernsey then succeeded Cobb as president and stated, "The Abercrombie & Fitch type does not care about the cost; he wants the finest quality." With so many locations now under operations by Abercrombie & Fitch, the Madison Avenue store remained as the Flagship store. In the 1950, the main floor of the flagship was remodeled to include heads of buffalo, caribou, moose, elk, and other big game, stuffed fish of spectacular size, and elephant's-foot wastebaskets.
In 1960, net sales rose to a great $16.5 million, but the net profit fell for the fourth straight year to $185,649.By 1961, net sales dropped to $15.5 million USD, and net profit to $124,097 USD. The new president and successor of Guernsey, John H. Ewing, paid little attention to the decline in sales.Ewing rejected the idea of a budget shop or "splash ads" for storewide sales. In 1961, he told an interviewer of BusinessWeek that Abercrombie & Fitch enjoyed a special niche "by sticking to our knitting; by not trying to be all things to all people." Throughout the 1960s, A&F opened locations in Colorado Springs, San malls in Short Hills, New Jersey (1963), Bal Harbour, Florida (1966), Troy, Michigan (1969).It also opened small shops in other stores.
In 1968, Abercrombie and Fitch held a warehouse sale. The items included "pop-up tents bought so far in the past that no one remembered how to pop them up, boots made of long-haired goatskin hide, miniature antique cannons, leather baby elephants, and Yukon dog sleds." In early 1970, A&F held another sale. The company presented offbeat newspaper advertisements that reflected a measure of desperation.Indeed, Abercrombie & Fitch continued to drop in revenue and reported a loss of about US$500,000 in its previous fiscal year. Noticing the effect that the ads and sale-days had upon the Abercrombie & Fitch customer base (bringing in customer's not of classic Abercrombie & Fitch material), the new president of the company William Humphreys stated in October 1970 that A&F would cease its misdirecting ads and sale days. Humphreys was a former Lord & Taylor executive, and possessed expertise in the financial field. He focused prominently on A&F's inventory control and credit practices by cutting down the company's budget.He also expanded into the suburbs and opened a location in Oak Brook, Illinois in 1972. Presentation within the flagship changed as well to provide a newer look for clientèle. Expensive sailboats were moved from upstairs to the main floor, a discount clothing section was introduced on the tenth floor, sportswear lines were expanded, and new buyers for women's apparel were hired. The changes did no good on improving sales performance and the company continued to decline financially under the direction of Humphreys and his successor, the new president of Abercrombie & Fitch, Hal Haskell, who was a major stockholder of A&F. After losing $1 million USD in 1975, Abercrombie & Fitch Co. filed for chapter 11 bankruptcy in August 1976 and finally closed doors in November 1977. Many criticized A&F executives for their lack of advertisement skills; saying that even after the obvious increase in sales of the first A&F television ad, Abercrombie & Fitch failed to see TV as a useful marketing tool of the time.Others claimed the A&F simply failed to transition from the sportsmen of the olden days to the new adventurers of the 1970s.
Oshman's, a sporting goods retailer, acquired Abercrombie & Fitch Co. soon thereafter in 1978. It opened a store under the Abercrombie & Fitch name in 1979 in Beverly Hills, California. Another store was opened in Dallas, Texas, which was bigger and sported $40,000 USD elephant guns and an "Abercrombie Runabout sports convertible" worth $20,775 USD. More stores were opened in locations such as South Street Seaport and Trump Tower. A&F stores now carried less of the old classic sporting goods, and more of the contemporary interest of golf, exercise, and tennis. Clothing collections for men and women carried business and casual dress, and also sportswear.Forbes gave a harsh statement of the new A&F saying that merchandise was "a hodgepodge of unrelated items" and that "sometimes it is better to bury the dead than to try reviving them." Nevertheless, Abercrombie & Fitch continued to on to struggle after Oshman’s struggled itself to develop a strong identity for the company.
In 1988, Limited Brands acquired the ailing company for $45 million USDafter having success in popularizing Express and Victoria's Secret.Headquarters was moved to Columbus, Ohio, and all inventory was cleared out. The new president of Abercrombie & Fitch, Sally Frame-Kasaks, proclaimed, "We can't get caught up in guns and fishing rods," and so a strong emphasis was placed on apparel. Michael S. Jeffries, a clothing executive, took over as president in 1992. According to Jeffries, he wanted A&F to "sizzle with sex." He popularized the brand to a teen apparel merchandiser from an ailing sports brand. He believed that focusing the A&F brand towards the American teen market would be financially beneficial as that sector of retail economy was said to be growing at a record rate at the time.
The new Abercrombie & Fitch reopened shortly after with a preppy outdoors image reminiscent of the company's original roots. Chain store prototypes were opened in upscale malls nationwide targeting teenagers and college students.He desired to have Bruce Weber, known for his sexual beefcake photography, as the photographer for the brand, but could not do so until the company gained financial success. The apparel consisted of woven shirts, denim, miniskirts, cargo shorts, wool sweaters, polo shirts, and t-shirts. Its prices were unprecedentedly high in the teen apparel industry. Sales rose $85 million in 1992, $111 million in 1993, and to $165 million in 1994.49 stores were opened by 1994, 67 January 1995, and a 102 was aimed by the end of 1995.In 1994, new records for merchandise margin rate and profitability were established by Abercrombie & Fitch for its parent, The Limited. To maintain popularity and to keep up with teen trends, Jeffries hired executives to keep up on popular teenage clothing, music, and entertainment.
By the mid-1990s, there were dozens of Abercrombie & Fitch stores in the United States. On September 26, 1996, The Limited, Inc. took Abercrombie & Fitch public on the New York Stock Exchange with the ticker symbol "ANF" and with the per share offering as $16.In late 1990s, the company introduced the "Canoe store prototype" to accommodate its growth. The new canoe store prototype was strikingly different from the Chain store prototype: It bore white molding, navy awnings, metal glass doors, and was divided into five rooms. The first canoe store opened in June 1996 in Chesterfield, Missouri. From then, the company began to opt building stores only averaging between 8,000 to 20,000 square feet (700 to 2,000 m²) in high-volume retail centers around the country.
In 1997, Abercrombie & Fitch launched A&F Quarterly. The publication included photography, interviews and articles about sex, pop culture, and other teen interests. In 1998, the company introduced its first subsidiary, abercrombie. The concept was designed as the Abercrombie & Fitch for a younger clientele between the ages on 7-14. By the next year, Abercrombie & Fitch became a part of a lawsuit on the behalf of Saipan garment workers. Many brands were charged with responsibility for sweatshop conditions, including Abercrombie & Fitch. Revenue recorded for Abercrombie & Fitch at the end of fiscal 1998 is at  $805.2 million USD.By 1999, Abercrombie & Fitch went became an independent company, and Mike Jeffries assumed the position of Chairman and Chief Executive Officer.As the brand regained its prominence, industry analysts began to speculate how long Abercrombie and Fitch would be able to retain its popularity.
The Company filed a lawsuit against American Eagle in 1999, claiming trademark violations, but the case was dismissed after the judge concluded that "clothing style and image are not copyrightable." Analysts predicted that A&F would fall from popularity, but sales continued escalating after a provocative Christmas 1999 in which the A&F Quarterly issue of the season features sexually explicit content that drew angry complaints. In 1999, the A&F also launched "A&F TV", which featured young people engaged in sports and leisure activities. A&F TV was originally developed to run on cable television and on monitors in Abercrombie & Fitch stores. It was soon removed. Revenue for fiscal 1999 is was at  $1.030 billion USD.
The overall approach of Abercrombie & Fitch, by the end of the decade, to its customers seemed to please male shoppers more than females, who shopped more frequently at competitor shops.Throughout the 1990s, Abercrombie & Fitch Co. enjoyed sales of over $400/ft2 ($4300/m2). By the end of the 1990s (December 1999), Abercrombie & Fitch operated a total of 212 stores nationwide.
Entering into the 21st century, Abercrombie & Fitch was rated as the sixth most popular brand (in front of Nintendo and Levis) by teenagers in a survey held by Teenage Researchers Unlimited and reported about in Time. The company introduced its third brand, Hollister Co., in July 2000. The third concept was based on Southern California surf lifestyle, and was targeted towards high-schoolers. Hollister had a cannibalizing affect on the A&F brand, and so the company brought forth the high-end Ezra Fitch collection, and began producing A&F clothing with higher-grade materials, thus increasing the prices. $1.237 billion is the reported revenue for fiscal 2000.In 2001, the company moved into a new 300-acre (1.2 km2) Home office in New Albany, Ohio. That same year, Mike Jeffries refused to offer sales after the terrorist attack on September 11 impacted sales.This action was in contrast to his predecessors, who had offered sales when faced with falling revenue in the late 1960s. Company sales suffered mildly due to the terrorist attack. Nevertheless, revenue was recorded at $1.364 billion for 2001, and at  $1.595 billion for 2002. Headquarters were further expanded by 2003.Also in 2003, the company released its last issue of A&F Quarterly after amounting lawsuits and moral complaints, and reported brand sales of up to $345/ft2 ($3700/m2) with a 2003 revenue of $1.707 billion USD.
After commercial success with Hollister, the company introduced its fourth brand, RUEHL No.925, on September 24, 2004. This new concept marketed towards consumers after the A&F ages, 22 through 35.Jeffries stated RUEHL took years of planning for the brand's image and its stores' atmosphere. Revenue continued to escalate as sales are reported at $2.021 billion USD for 2004.In November 2005, the company completed construction of the first Abercrombie & Fitch flagship store on Fifth Avenue. By now, the trademark Casual Luxury was being used for promotion and designated e-commerce websites for the company's brands have been in operation. Revenue reported for 2005 was  $2.784 Billion USD.
Abercrombie & Fitch began its Canadian expansion in January 2006 when the company opened two Abercrombie & Fitch stores and three Hollister Co. stores in Toronto and Edmonton.By fall 2006, a third Canadian Abercrombie & Fitch store opened in the Toronto Eaton Centre. The brand introduced a definition of Casual Luxury Christmas 2006. It was displayed in-store, printed inside the Christmas 2006 catalog, and as a link on abercrombie.com. Revenue reported for 2006 is  $3.318 billion USD, an increase of over $1.297 billion from 2005.
Early in 2007, the Canoe store prototype was revamped to include louvers (providing a more dark and private atmosphere for customers). The cost for the upgrade on A&F stores was at around $10 million.The company spent another $40 million on upgrading fixtures, flooring, and sound systems in every store, four brands across. On March 22, 2007, at 10:00am, Abercrombie & Fitch opened its first European flagship store in London at 7 Burlington Gardens at Savile Row. In regards to the opening, Mike Jeffries stated, "We are thrilled by the opening of the London store, which will truly become a worldwide flagship. Its location in one of the most historic districts in the retail world will provide an extraordinary showcase for the Abercrombie & Fitch brand." The location was built in 1725 as a home and after 300 years of alterations and additions, the building has kept some of its architectural designs onto which the lifestyle of A&F was incorporated upon. The store generated a volume of $280,000 (around £140,000 GBP) in its first 6 hours of operation. The flagship remains one of the most profitable A&F locations. During this "Spring Break 2007" season, A&F created its definition for Spring Break and marketed the Casual Luxury definition less than before. Revenue reached record heights in 2007 with an overall sales of  $3.749 billion.
Entering 2008, Abercrombie & Fitch introduced its fifth anticipated concept, Gilly Hicks: Sydney, January 21.The store, in Natick Collection, became the target of attention throughout the day and the brand has enjoyed great success. By April 2008, A&F relaunched A&F Quarterly exclusively for the European market, reuniting the entire force behind the original publication for the release in the UK flagship