Abercrombie & Fitch announced on Wednesday, better-than-expected sales forecast largely because of the popularity of its Hollister brand and its expectations from store remodeling to be catching the attention of more young shoppers.
The company along with closure of 40 stores that are not making profits also announced of redesigning its outlets with improved displays and lighting and will offer trendy clothing including sweatshirts and jeans to increase the demand for its Abercrombie brand.
The company will continue to be investing in remodeling of stores with the new format as it is proving to be making more sales, Chief Executive Fran Horowitz said.
Abercrombie & Fitch is among the specialty retailers that are still committed to make in-store investments, she said.
Abercrombie brand is the company’s trademark that offers logo-emblazoned designs, but it has been struggling because of the declining sales as young shoppers prefer cheaper clothes and fast-fashioned brands available online.
In the fourth quarter, same-store sales of company’s Abercrombie brand dropped by 2 percent for taking wrong steps towards the fashion designs of dresses and tops during holiday season, on the other hand same-store sales of its Hollister rose by 6 percent during the same period.
For the dresses and tops of its Abercrombie brand, the company got the wrong silhouette which remained different the shoppers’ desired fitted and oversized styles, said Gabriela Santaniello of retail research firm A line Partners.
Shoppers were concerned and though that style to be continued by the company but it has been corrected as it was error occurred in a single-season, she said.
To increase its sales and specifically target young shoppers, company has been investing in loyalty programs along with use of social media influencers for promotion of its new products which also include brand-specific hashtags of its perfume Fierce.
