ilers in the US by the American Customer Satisfaction Index. At the time, Abercrombie & Fitch was still struggling to find its footing following the exit of CEO Michael Jeffries, who stepped down in December 2014 after 11 consecutive quarters of sales decline.  Abercrombie & Fitch Co’s portfolio includes Abercrombie & Fitch, Abercrombie Kids, Hollister and Gilly Hicksin. What went wrong In the 90s and early 2000s, Abercrombie & Fitch was at the peak of the mall scene. Its popularity was built upon a “cooler-than-thou” image that included highly sexualized but popular advertising, high prices and limited size ranges.  In a now-infamous 2006 interview, Jeffries stated, “We go after the cool kids. We go after the attractive all-American kid with a great attitude and a lot of friends. A lot of people don’t belong [in our clothes], and they can’t belong. Are we exclusionary? Absolutely.” However, in the mid-2010s, the brand’s image shifted from “cool kid” to “mean girl” as consumers began to distance themselves from its discriminatory hiring practices and limited product offerings and turned towards brands that were more welcoming and trendy.  In February 2017, Fran Horowitz, who joined the corporation as Hollister’s brand president, in October 2014, was appointed as CEO of Abercrombie & Fitch. As part of her long-term turnaround plan, Horowitz worked on differentiating the brand identities of Hollister and Abercrombie & Fitch, which had begun to fuse together, and creating a more inclusive size range, like the brand’s best-selling Curve Love denim, and showcasing a wider array of influencers and models of various sizes, shapes, and skin tones in its advertisements.  The corporation also closed underperforming stores and redesigned its remaining stores, which featured dark wood paneling and dim lighting, to be smaller, more intimate, and brightly lit. It also rolled out omnichannel capabilities to seamlessly connect customers’ digital and in-person shopping experiences. Another factor in Abercrombie & Fitch’s resurgence is the popularity of Y2K fashion with Gen Z consumers, who grew up watching their older siblings and friends wear the brand, and are taking an interest in the company’s brand portfolio once again.  “Abercrombie’s brand growth has come off the back of healthy expansion last year, which means that on a two-year stack, total sales have grown by a stellar 48.9 per cent. This has been driven by both existing customers spending more, and by new customers rediscovering the brand,” GlobalData’s managing director and retail analyst Neil Saunders told Inside Retail. While many retailers are reporting a slowdown in consumer spending, Saunders said Abercrombie & Fitch has avoided this by “the constant infusion of newness into the ranges with plenty of on-trend product drops across the quarter. This keeps existing customers coming back to the website and stores and, ultimately, encourages them to spend more”. He also pointed to changes in the supply chain, which the company has made over the past five years, which have turned it into a nimbler business. “This helps sales, but it also ensures that discounting and promotions are reduced,” he said. “It also underlines the degree to which Abercrombie has become a much more customer-centric brand where buying decisions are informed by a deep understanding of the shopper.” What does this indicate about the future of the brand? In a statement released alongside the company’s results, Horowitz said that the first quarter results reflect the power of its brands and strong execution of its global playbook. “We successfully navigated seasonal transitions with relevant assortments and compelling marketing, leveraging agile chase capabilities and inventory discipline, driving sales above our expectations,” she said. A closer look at the numbers reveals that the Abercrombie brands are driving the company’s performance, with 31 per cent growth, while the Hollister brands are experiencing slower, but still fairly steady, growth at 12 per cent. This indicates that there is still work to be done to review the image of Hollister and Gilly Hicks, an activewear and intimates brand, which is struggling to compete amongst newer players like Parade.   However, with the introduction of new offerings like the A&F Wedding Shop, Abercrombie & Fitch’s recent move into the bridal category, suggests that the company is committed to staying on top of trends and relevant to the desires of the modern shopper.  Abercrombie & Fitch Co estimates that its full-year net sales will increase approximately 10 per cent year-on-year, a markup from its previous estimate of 4-6 per cent, with an operating margin of around 14 per cent, up from the 12 per cent it previously predicted. “We remain on track to achieve our 2024 goal of demonstrating sustainable, profitable growth after a defining year for the company in fiscal 2023. Our brands are delivering high-quality, on-trend assortments for new and retained customers across regions and brands. Importantly, we continue to make strategic investments across stores, digital and technology to further strengthen the company in pursuit of our long-term ambition,” Horowitz emphasized.  Can Abercrombie & Fitch Co keep up its momentum? Saunders is optimistic about Abercrombie & Fitch Co’s continued success moving forward: “With such great performance under its belt, the question is whether Abercrombie & Fitch can keep delivering. This is especially so as, from next quarter, the company starts to lap tougher prior year numbers. It is reasonable to expect a moderation of growth the company will continue to outperform.”