Abercrombie & Fitch Has Fallen, and It Can’t Get Up
Tees emblazoned with phrases deemed offensive to women have been yanked from Abercrombie & Fitch clothing stores thanks to a group of teen girls who launched a nationwide “girlcott.” Bowing to pressure from the public and supporters of the Allegheny County Girls as Grantmakers (the group of nearly two dozen girls who spearheaded the protest), the retailer announced Friday that it is pulling two shirts off the market: one with the slogan “Gentlemen Prefer Tig Old Bitties” and a second reading, “With These, Who Needs Brains?” across the chest. “We recognize that the shirts in question, while meant to be humorous, might be troubling to some,” the company said in a statement. Several more questionable tees — with expressions like “Blondes Are Adored, Brunettes Are Ignored,” “I Had A Nightmare I Was A Brunette,” “Do I Make You Look Fat” and “No Money, No Car, No Chance” — are still available but could be pulled, pending negotiations with the girls later this month. The group has offered to help A&F come up with more empowering messages to put on its clothing in the future. The idea for the boycott came during a meeting the girls had at a retreat this summer. As they were brainstorming ideas of what they could do to make a difference in their community, discussion soon shifted to the Abercrombie tees, which many of them saw as “nasty and disgusting,” said 13-year-old Jettie Fields, the group’s co-chair. “There’s a certain degree to where those shirts can be funny, but with the one that said, ‘With These, Who Needs Brains?,’ I think that’s really pushing it and takes it too far,” Fields said. “Girls need to know it’s not necessary to wear these shirts, and that if they stop buying them, then Abercrombie will stop selling them.” The group held a press conference and then was blown away by the amount of support and media coverage the boycott received, Fields said. “We had no idea it would get this far, so we’re all just really happy,” she said. “I was like, ‘Wow, people are actually taking us seriously. They don’t just see as a group of little girls.’ The fact that we were able to take down a huge corporation and have them listen to us, that’s an awesome victory.” “We are delighted they won,” said Sarah Gould, president of the Ms. Foundation for Women. “These T-shirts … are potentially dangerous to girls and their health because it reinforces the message that girls are only as good as what their bodies are, and that’s very undermining to a girl’s healthy development. This girlcott just proves that today’s teen girl is much smarter, more aware and very socially active. She won’t blindly follow a trend or wear clothes from a brand just because it is deemed ‘cool.’ “ This isn’t the first time Abercrombie has come under fire for the phrases on its clothing. In 2003 the chain was criticized for a series of tees that featured caricatures of Asians along with phrases like “Two Wongs Can Make It White” (in a mock dry-cleaning business ad) and “Get Your Buddha On The Floor.” Riam Dean has a prosthetic arm that attaches at the elbow, and she typically wears a sweater to cover the prosthetic. While A&F employees are required to wear jeans and a polo shirt, she was given permission to wear a white cardigan while working on the floor. But only a few days after she started work, the store was paid a visit by the “visual team.” This group’s purpose is to sure the shop and its staff look up to code. One of the members of the team demanded she take off the cardigan, but she insisted she had permission to wear it. Nevertheless, she was asked by management to continue her employment in the stockroom, far out of the public eye. Management claimed that she “violated the ‘Look Policy,” which is an imperative part of working for such a prestigious clothing outlet. As if she could help the fact that she is, unfortunately, missing an arm. Totally her fault, I suppose. The nerve. Pssh. Riam sucked it up and commenced her stockroom duties, normally reserved for the “underlings” (i.e., ethnic minorities) of Abercrombie & Fitch “society” and received a telephone call at home a few days later, asking if she would continue on board with the company’s stockroom until their winter uniforms came in, which consisted of long-sleeved tops. She quit on the spot. Riam, who was born without a forearm, has utilized a prosthetic appendage for as long as she can remember. However, she never let her physical handicap become just that - a handicap. Dean is currently a student at Queen Mary University, located in London, and is pursuing a barrister’s degree. A&F has never been a stranger to discrimination suits; one was recently settled in the US for discrimination during the hiring process in that they would allegedly only hire “young and beautiful” men and women to work in their stores. I am not one of those sue-crazy citizens. I think that a lot of the lawsuits nowadays are setups. A lot of people abuse the legal system and look for loopholes to sue over practically everything. I have a family member quite like that and it drives me up the frigging wall. Yet, I hope Riam gets every penny. I hope she triple-sues. I hope after the suit goes through, she receives her requested money and additional funds for pain and suffering. The embarrassment at her treatment by A&F must be immense. Starting off with Abercrombie & Fitch (NYSE: ANF), an investor bought the Nov. 30-35 call spread 5,000 times, and simultaneously sold 5,000 Nov. 17.5 puts; the investor paid 20 cents to do this multi-legged trade. ANF has been under pressure for months due in part to declining sales numbers, and the shares are currently trading down 55 cents to $25.46. It’s interesting to note, however, that at least one investor is expressing bullishness on the clothing retailer. The Nov. 30 calls were home to open interest of 982 contracts, while the Nov. 35 calls were home to open interest of 281 contracts. The Nov. 17.5 puts were home to open interest of 577 contracts. ANF shares have climbed more than 70% since Nov. 20 when the shares dipped to a 52-week low of $14.15. However, they are down from the low 30s reached in early June. J.C. Penney Company (NYSE: JCP) shares dropped about 67 cents to $25.93 yesterday, but one investor was expressing bullishness on the retailer and sold 5,000 July 22 puts for around 40 cents. JCP stock was trading at $25.81 at the time of this trade. The in-the-money July 22 puts, which were trading down two cents on the day, were home to open interest of 275 contracts. JCP did not announce significant news yesterday, but at least one investor could be betting that the stock has more room to rally. The investor needs JCP shares to expire higher than $21.60 come July expiration to make money - the stock does not necessarily need to rally, it just needs to hold around its current levels. Abercrombie sale has rallied 85% since reaching a 52-week low of $14.18 on March 9. Looking at the July 29 calls in Coach (NYSE: COH), an investor sold 1,500 of these calls for 45 cents with the stock up 31 cents on the day to $26.55. We also saw call sellers in the July 30 calls, which were trading down five cents. The in-the-money July 30 calls were home to open interest of 1,972 contracts. It’s interesting that COH shares were up on a down market day, but an analyst from Lazard Capital raised his expectation of the company’s new “Poppy” collection because of a boost in media and customer buzz before it launches this Friday. Despite this rally, we saw at least one bearish investor betting that COH shares could drop below $30 in the next month.
Abercrombie Brand Protection Features
Abercrombie & Fitch introduced abercrombie in 1997 with 9 stores. The purpose was to attract a younger audience to the American Abercrombie brand. The name of the concept took the same font of its parent, but with a navy color. The abbreviation from “Abercrombie & Fitch” to “abercrombie” with lowercase letters was intended to provide a children’s image. The store prototype was as the A&F one, but with variations also intended to appeal to the younger audience. Early abercrombie models include Ronnie Smith, Cassie Ventura, Christina Akatsuka, Christian Valentin, and Lindsay Lohan.
The company uses trademark Casual Luxury to promote the brand. The brand defines the slogan as using “the finest cashmere, pima cottons, and highest quality leather to create the ultimate in casual, body conscious clothing,” and “implementing and/or incorporating time honored machinery …to produce the most exclusive denim…”
The brand carries Men’s fragrances Fierce, Cologne 41, Proof, and Colden. Women’s fragrances include Perfume 8, Classic, Perfume 41, and Wakely. Released at the same time, Fierce and 8 and Cologne41 and Perfume 41 are marketed to compliment one another. High-end fragrances Ezra Fitch (cologne) and Ezra parfum were described as the embodiment of “the Abercrombie and Fitch heritage,” until they were discontinued. Cologne Proof was released in Christmas 2006 to be removed a year later (though some stores still carry Cologne Proof). Perfumes Ready is also among the retired fragrances. Fierce and 8 are the most heavily marketed fragrances as they are the signature scents of the brand overall.
As the popularity of Abercrombie & Fitch goods increased, so did the counterfeiting of them. In 2006, the company launched the Abercrombie & Fitch Brand Protection Program to combat the issue worldwide (focusing more in Taiwan, China, Hong Kong, Japan and Korea) by working with legal forces globally.[28] Shane Berry, who joined the company in November 2005, was placed in charge of the program. Berry is a former Supervisory Special Agent from the FBI, and was a part of its Intellectual Property Rights Program. The news release from A&F announcing its initiative stated that the “program will improve current practices and strategies by focusing on eliminating the supply of illicit Abercrombie & Fitch products.”
The Brand Protection program covers all A&F brands; mainly A&F, Hollister and RUEHL {shuttered by end of January 2010). Assuring that its consumers are aware of the issue, the Abercrombie & Fitch Brand Protection and abercrombie brand protection features suggest customers to purchase from authentic stores and to report suspected A&F counterfeiting.
The company’s Abercrombie and Fitch brand gift cards have been recognized by Consumer Affairs as a “top pick” for not having deceptive features such as expiration dates, dormancy fees, and post-purchase fees.
Abercrombie kids stores are designed to give off a “classic cool” effect. They are designed as “canoe stores,” displaying the a similar floor layout as Abercrombie & Fitch’s (the retail space is divided into multiple rooms). However, the kids prototype does bear differences. It has no louvers to cover the windows, has brighter lighting, is smaller in retail space, blasts electronic dance music and pop music from young artists, and displays marketing pictures with young models resembling those at A&F. The signature fragrance, “Phelps”, is sprayed store-wide. However, in late 2008, most new stores have added wooden louvers.
As of 2008, abercrombie operates a total of 209 stores in the United States. abercrombie kids opened its first Canadian store on August 21, 2008 at Sherway Gardens in Toronto, Ontario. Another abercrombie kids store opened at Toronto Eaton Centre in Toronto, Ontario around the end of November.As of February 2008, there are stores in every state except for Alaska, Delaware, Hawaii, Maine, Montana, Nebraska, New Mexico, North Dakota, South Dakota, Vermont (Closed in 2005), West Virginia, and Wyoming.
Abercrombie kids’ apparel is designed to mimic Abercrombie & Fitch clothing, and the brand carries most the styles that A&F does. Most abercrombie kids clothes that have the labeled moose on them are to resemble their parent company “Abercrombie & Fitch” but the kids signature moose is a smaller to symbolize that they are children. The trademarked term, “classic cool”, is used to promote the clothing on an in-store and website level from abercrombie and it acts as the more juvenile version of A&F’s slogan “Casual Luxury”. The “classic cool” trade mark was retired in 2007 along with Abercrombie and Fitch’s “Casual Luxury”. Jeans bear the same back-pocket-stitching pattern as A&F as well as the same fits respective to sex. The logo moose is prominently displayed on clothing as is the name “abercrombie” as well as the year of establishment, “1892″ (Abercrombie & Fitch was itself established in 1892, but in reality, the children’s’ line “abercrombie” was not started until 1997). Clothing is categorized within the “guys” and “girls” divisions. Price points are on par with those at sister brand Hollister Co.
The brand carries the following fragrance collections: “Phelps” cologne, “Chase” cologne and “Cologne 15,” as well as “Emerson,” “Spirit” perfume, and “Perfume 15″. The brand released the “abercrombie” cologne and perfume set previous to 2006; however, it was retired Christmas 2007. Chase and Spirit were released Christmas 2006 and were followed by Cologne 15 and Perfume 15 being released Christmas 2007. Chase is set to retire from stores after the Back to School 2009 season is over, however will be available on the abercrombie website until 2010. New fragrance Phelps and Emerson were released for Christmas 2008.
Abercrombie & Fitch: Worst Recession Brand?
In this recession, there are struggling apparel retailers all across the country. Then there’s Abercrombie and Fitch. The upscale teen retailer has suffered 10 straight months of double-digit same-store-sales declines. In the second quarter of 2009 alone, sales were down an eye-popping 30% across the company’s three name outlets: the flagship Abercrombie brand, which has 567 stores; Hollister, a 520-store teen chain; and Ruehl, a 29-store chain for young adults that Abercrombie shut down in June. Abercrombie & Fitch lost $26.7 million, which includes $24.4 million in charges associated with the closing of Ruehl, in the second quarter. During the same period in 2008, Abercrombie scored a $77.8 million profit. “Abercrombie has mismanaged this economic downturn more than any other retailer,” says Britt Beemer, CEO of America’s Research Group, a retail consulting firm.
What lessons can be learned from the Abercrombie experience? The first has to do with pricing. As the economy spiraled downward and competitors like Aéropostale started discounting like crazy, Abercrombie refused to lower prices. The company insisted that price-cutting would cheapen the cachet of the brand.
You would figure that discounting would provide goodwill and build customer loyalty, especially in lean times. After all, with more grateful customers in tow, wouldn’t the company be in a great position to ride the upswing associated with an economic recovery, raising prices again when times get better?
Not necessarily, say consumer experts. “According to various research findings, a company will have a tough time increasing prices once they’ve lowered them,” says C.W. Park, a marketing professor at the University of Southern California and editor of the Journal of Consumer Psychology. “Shoppers start to think the discounts are the base prices, and you risk alienating the shoppers if you raise them. Logically, you’d think that consumers would appreciate the lower prices and be understanding when they go back up. It doesn’t always work that way.”
But even if Abercrombie could justify holding firm on price, it did little else to entice customers. “If you provide interesting incentives, you can minimize losses while maintaining the luxury image,” says Park. “Offer milk and cookies in the store. Anything.”
He points to the Four Seasons hotel chain, which still charges premium prices for its rooms but started offering deals that let you buy a two-night stay and get a third one free. The hotel, in effect, is lowering its prices. But when things improve, it will be easier for consumers to accept the end of the free-room deal than a sudden spike in prices. We know you can’t give away rooms, but how can you jack prices up another $30? Although Abercrombie holds seasonal clearance sales, it shuns such regular promotions.
Abercrombie is having other problems. “They were the quintessential American prep brand, but the world changed on them,” says Edward Yruma, an equity research analyst at KeyBanc Capital Markets. “We’re living in the Gossip Girl era, where we’re seeing some funkier fashions.” Abercrombie’s classic look went out of style, and the company is just starting to sell dresses, which have performed well. “I’ve noticed that my kids aren’t open to anything Abercrombie these days,” says one mother of two teenage girls.
After releasing second-quarter earnings on Aug. 14, Abercrombie CEO Mike Jeffries admitted that the company missed some spring fashion trends. He said he plans to cut prices more aggressively. (The company did not respond to an interview request.) He might also want to change the Abercrombie vibe, which seems pretty tone-deaf to the times. At the New York City Abercrombie and Fitch store, whose neighbors include Prada and Gucci, a shirtless male model greets shoppers at the front and happily snaps pictures with the gawkers. Sales associates dance to hip-hop music in the aisles. There’s not one “For Sale” sign in the whole four-story place. A pair of men’s ripped jeans go for $90; women’s jeans are $80; a hooded sweatshirt with the Abercrombie logo is $60.
Meanwhile, at the New York City Aéropostale, whose neighbors include J.C. Penney, no one is shirtless but everything is on sale. No half-nude model greets you at the front door, but a guy barking “Buy one pair of women’s jeans, get another free” does. Sales associates don’t dance; they tell you deals. Ripped jeans are $30; women’s jeans sell for $49.50 (plus the freebie pair); the Aéropostale hoodie is $15, or a quarter of Abercrombie’s price.
Think it’s a coincidence that while Abercrombie’s second-quarter profits fell 134%, Aéropostale’s are up 83%?
When and if the economy heats up again, perhaps shoppers will return to the so-called aspirational brands like Abercrombie. But don’t bet on it. “Retailers don’t realize that consumers are spending less and doing O.K. with it,” says Beemer. According to Beemer’s research, only 40% of men and 20% of women say they’ll spend at high-end apparel stores again. “Abercrombie keeps working to protect their brand,” says Beemer. “But when you keep seeing 30% sales declines, you’re going to protect your brand into oblivion.”
Earnings Preview: Abercrombie & Fitch
Teen apparel retailer Abercrombie & Fitch Co. reports earnings for the fiscal second-quarter quarter on Friday. The following is a summary of key developments and analyst opinion related to the period.
OVERVIEW: Abercrombie & Fitch Co. has seen sinking sales amid the recession, as it kept its price points among the highest in the teen sector and waited for a rebound. Over the past few months it has planned more sales and offered lower entry-level prices, but sales are still expected to sink during the quarter ended Aug. 2. Meanwhile, competitors such as Aeropostale Inc. and American Eagle Outfitters Inc., with their emphasis on low prices and basics, have fared better.
Sales in stores open at least on year, or so-called same-store sales, fell 28 percent in July, 32 percent in June and 28 percent in May.
The company said it was shuttering its high-priced Ruehl line of handbags and apparel in a move expected to be complete in January 2010. New Albany, Ohio-based Abercrombie also operates surf-themed Hollister, abercrombie, its store for children, and Gilly Hicks, an intimate apparel line.
BY THE NUMBERS: Analysts polled by Thomson Reuters, on average, predict a loss of 7 cents per share on revenue of $647.9 million. The company said, according to a preliminary tally, sales fell 23 percent to $648.5 during the quarter.
ANALYST TAKE: In a note to investors, RBC Capital Markets analyst Howard Tubin said in a client note Tuesday lowering price points and offering more “current-season” fashion in stores are encouraging acts, but he said it will take more of an effort for results to improve.
“We remain on the sidelines with respect to the shares until we see significant newness offered within the assortments across all concepts,” wrote Tubin, who rates the company “Average Risk.”
Stifel Nicolaus analyst Richard Jaffe wrote in a note to investors that he expects a loss of 3 cents per share, with weak women’s apparel offerings and the recession holding back results.
“On a positive note we believe management has demonstrated better inventory management, which bodes well for the second half and we believe that the markdown cadence will likely be more effective going forward (shallower markdowns taken throughout the quarter instead of deep clearance activity at the end of the quarter),” he wrote.
WHATS AHEAD: Analysts will be looking for any indication about how back-to-school sales are doing, an update on closing Ruehl stores and any indications about how the company is planning for the upcoming holiday season.
STOCK PERFORMANCE: Shares rose 13 percent during the three months ended Aug. 1.
Skimpy Profits Pressure Abercrombie’s Pricing Attitude
The clock is ticking on Abercrombie and Fitch Co.’s strategy of selling high-priced teen clothing as the recession erodes sales and profit margins, and competitors outrun it.
The New Albany, Ohio, company, which is expected Friday to report a quarterly loss of seven cents a share excluding charges, has refused to offer deep discounts, allowing lower-priced rivals such as Aeropostale Inc. and American Eagle Outfitters Inc. to build sales and finance attacks on Abercrombie’s children’s and young adults’ sales.
Aeropostale has posted increases in sales at stores open at least a year of 11% and 12% for the first and second quarters of this year. In June, it opened its first P.S. from Aeropostale children’s brand store taking aim at Abercrombie’s children’s clothing.
In contrast, Abercrombie’s high prices have produced 30% sales declines at stores open at least a year in each of the first two quarters.High prices and a reputation for scantily clad models for years generated some of the best profits in the teen business. But that is no longer the case, said Richard Jaffe, a managing director at brokers Stifel Nicolaus & Co.
From 2002 to 2007, Abercrombie’s operating margins hovered slightly below 20%. But last year, Abercrombie’s operating margin fell to 13.3% and should fall to just 3.9% this year, said Mr. Jaffe.
Abercrombie Chief Executive Mike Jeffries declined to comment ahead of quarterly earnings. Abercrombie has been reluctant to alter its pricing strategy in part because it believes it is the key to international growth, embodied by its large store in London. The strategy overseas is to sell Hollister clothing as a luxury American brand.
To preserve that air of exclusivity, the London outpost, a tourist magnet, doesn’t offer discounts or promotions of any kind. A men’s polo shirt that retails for $60 in New York sells for £60 ($99) in the London store, which continues to post year-over-year increases in monthly sales. The company plans to open a large store in Milan in October and in Tokyo in December.
Even so, it has several times embarked on price cuts to move unsold inventories. Abercrombie has insisted the markdowns are highly selective. They are noted subtly by small signs on tables, not the large red signage in store windows deployed by competitors. Even on sale, a typical Abercrombie item often remains pricier than offerings from its peers.
Abercrombie & Fitch tries to keep its shirt on as sales slacken
Abercrombie and Fitch Co. raised eyebrows last Christmas when the teen retailer insisted it would ride out the recession without resorting to widespread price-slashing.
Then came months of massive double-digit sales declines and dwindling store traffic as shoppers defected to competitors that sold similar clothes at more affordable prices. Industry experts wondered whether the company was risking its business in its attempt to uphold its brand image.
At the same time, Abercrombie was criticized for missing several fashion trends, for instance, waiting too long to offer casual dresses and relying too heavily on its graphic T-shirts.
“It’s fair to say they’ve lost a good chunk of customers,” said Howard Tubin, a retail analyst with RBC Capital Markets.
In May, Abercrombie acknowledged that it had underestimated the financial pressures that consumers were facing. Since then, the retailer, which has cultivated a sexy-and-trendy image through shirtless store greeters (male) and ads featuring scantily clad models (male and female), has quietly been reducing prices and putting more items on its clearance racks.
“The learning is that we are in very tough economic times, where price has become more of an object for us than it ever has been, and we are using this strategy to drive traffic during this time,” Abercrombie Chief Executive Mike Jeffries said during a conference call with analysts Friday.
But shoppers say they haven’t noticed a change.
At the Glendale Galleria this week, Lindsey Ochinero and daughter Macaella, 12, were back-to-school shopping at Abercrombie, where nearly everything was full price.
Unlike rivals American Eagle Outfitters and Aeropostale nearby, Abercrombie didn’t feature sale signs or special offers, and its clearance items were in the back. The pair soon left empty-handed.
“Ridiculous — $60 for a pair of shorts? It’s not even a designer brand,” said Ochinero, a medical and legal transcriptionist from Fresno. “They’re sabotaging themselves. In the most desperate of times, what makes them so exclusive?”
Despite Abercrombie’s efforts to lower prices, “average unit retail price was down only 5% year over year in the second quarter — that’s not enough for the customer to even notice or get excited about,” RBC’s Tubin said. “There needs to be further movement.”
Abercrombie executives say they never promised huge discounts. Despite being more mindful of consumers’ budgets, the company still needs to maintain its status, especially as it looks to expand internationally, said Eric Cerny, manager of investor relations.
“If we go in and do a short-term fire sale and cut prices and fight the economy that way, we’d end up doing damage to the long-term aspirational appeal of the brand,” Cerny said in an interview. “We know price is a component, but it’s not going to be the component that drives our model. It never has been.”
Instead, the firm is tackling the recession modestly from the price end and aggressively from a fashion standpoint.
After many of its styles last year missed the mark, Abercrombie has worked to correct its merchandise mix by bringing new fashions front and center, a shift away from its usual trendy-but-simple apparel. The brand has begun to offer an expanded selection of dresses and print tops for women and fewer basics such as logo T-shirts, which were among the weakest performers in the second quarter that ended Aug. 1.
The fresh offerings have helped entice customers back to the stores, and several items, including plaid shirts and casual dresses, have sold well, said Christine Chen, a retail analyst with Needham & Co.
“The price points have certainly hurt them, but I think last year that was particularly exacerbated by the fact that Abercrombie didn’t offer much fashion newness,” she said. “Now they’re actually offering fashion and have brought ticket prices down in some key categories. I realize that’s not reflected in their sales numbers, but that doesn’t happen overnight.”
On Friday, Abercrombie — which has about 350 namesake stores nationwide and is the parent company to other brands including Hollister Co. — reported a net loss of $26.7 million for the second quarter and said sales at stores open at least a year plummeted 30% compared with the same period last year. In the year-earlier quarter, the retailer posted a profit of $77.8 million.
In June, the company said it would close its “post-grad” Ruehl division because of the recession and its negative effects on the chain’s business.
Abercrombie will continue adjusting its merchandise mix and cutting costs, executives said. They also hinted that the company might close some underperforming stores when their leases expire.
Although Abercrombie has been one of the teen sector’s poorest performers this year, it is still considered the elite youth brand and has no long-term debt, Chen said. That positions it to weather the downturn better than many.
“Once things turn around with the economy, provided Abercrombie continues to offer good-looking product at high quality, they’re not going to have a difficult time getting the customer to pay full price,” she said. “The brand is not dead.”
Brands that engaged in the markdown frenzy that has dominated the mall scene during the economic crisis won’t rebound as well, because discounting “trains the customer to wait for the sale,” she said.
But shoppers say that at a time when even luxury chains are discounting, Abercrombie should give its loyal customers a break.
Johnny Hernandez, 23, said he prefers Abercrombie to other brands but can’t afford to shop at the trendy retailer nearly as much lately because of a tighter budget.
At the Glendale Galleria this week, Hernandez first went to Abercrombie for polo shirts but ended up buying two from Aeropostale, which was holding a buy-one-get-one-free deal, for a total of $24.50. At Abercrombie, a full-priced polo would have cost him $60.
“I’ve shopped more at Aeropostale than at Abercrombie lately because of the price,” he said.
Narine Malkhasyan, 25, said she would “most definitely” shop at Abercrombie, where she was buying $50 sweat pants this week, more frequently if prices were lower.
“I can’t relate to that,” the Burbank resident said of the company’s pricing strategy. “A sale is always a good thing.”
Working at Abercrombie’s store on London’s posh Saville Row
Hollister has secured a 8,200-ft² store at Victoria Square, joining names such as Cruise, Ted Baker, Reiss, Firetrap, All Saints, Urban Outfitters, Top Shop, River Island, H&M and Levis. Multi Development, who developed Victoria Square, recently announced that Kurt Geiger and the new denim brand J Four, have also signed for stores within the 850,000-ft² scheme anchored by House of Fraser. Multi Development UK’s Director of Leasing, Stuart Harris said, “Signing the first Hollister store for Ireland is a great coup for Victoria Square and further endorses the scheme’s quality and position as the number one destination for fashion conscious Northern Islanders. Since opening in March 2008 Victoria Square’s following has continued to grow as it matures and settles in the Belfast and Northern Ireland shoppers psyche. The scheme has also hugely benefited from trade from Southern Ireland due to the strength of the Euro against the pound and this will be another strong pull.”
A Hollister representative said, “We’re excited to bring our Irish fan-base their first Hollister store where they can go and experience the brand first hand. Hollister is all about the fantasy of Southern California. We’re bringing SoCal to Ireland!”
Hollister is a lifestyle brand that embodies Southern California and operates over 500 stores across the globe, in addition to hollisterco.com. Hollister is a division of Abercrombie & Fitch (NYSE: ANF), a leading specialty retailer founded in 1892. With over 1,100 stores across the world, Abercrombie & Fitch offers five distinct lifestyles through its Abercrombie & Fitch, abercrombie, Hollister Co., Ruehl, and Gilly Hicks divisions.
In a move that surprised nobody, Abercrombie & Fitch (ANF) today announced plans to shutter its struggling 29-store Ruehl chain by the end of the year.
Perhaps the chain’s offerings were out of step with the times. Ruehl sought to define “the aspirational Greenwich Village lifestyle” with high-priced “signature styles” of clothing. The names of its products invoked a trendy kind of sophistication that the New York City neighborhood is known for; “One Night Stand,” “Buying Drinks” and “Chance Encounter” pocketbooks went for $298, while jeans sold for $118 and a pair of leather flip-flops fetched $50.
Ruehl generated a pre-tax operating loss of about $58 million for the fiscal year ended January 31, 2009, including a non-cash impairment charge of approximately $22 million. In a statement, Mike Jeffries, Chief Executive Officer and Chairman of the Board of Abercrombie & Fitch Co., said he was disappointed that the chain was closing.
“It has been a difficult decision to close Ruehl, a brand we continue to believe could have been successful in different circumstances,” Jeffries said in a press release.
Wall Street criticized Abercrombie & Fitch for taking so long to close Ruehl. Abercrombie took a $51 million impairment charge related to Ruehl in the first quarter and will have to charge off an additional $65 million over the rest of the year. Same-store sales at Ruehl fell 33 percent in May alone.
The company also announced that it has amended its existing credit agreement to exclude from its calculation of the minimum coverage and maximum leverage ratios up to $61 million of the estimated $65 million of additional pre-tax charges associated with exiting Ruehl. Abercrombie & Fitch also agreed to a reduction in the amount of available credit to $350 million from $450 million, an increase in the facility fee and borrowing costs, and a capital expenditure limit of $600 million for the 2009 and 2010 fiscal years, including not more than $275 million for fiscal 2009.
A student who worked for U.S. retailer Abercrombie & Fitch Co. in London said Wednesday she was discriminated against because she has a prosthetic arm.
Riam Dean is seeking up to 25,000 pounds ($41,000) in damages at an employment tribunal.
Dean, a 22-year-old law student at the University of London, told the tribunal she worked at Abercrombie’s store on London’s posh Saville Row and had been given permission to wear a sweater to cover her prosthetic arm.
After a few days Dean said she was told she was breaking the company’s “look policy” and was asked to work in the stockroom.
Dean said the company gave new employees a thick guidebook dictating everything from how employees should wear their hair to the length of their fingernails.
“I have worn a prosthetic arm since I was 3 years old,” she said. “It was part of me, not a cosmetic.”
Abercrombie & Fitch said in a statement it “has a strong anti-discrimination and anti-harassment policy.” It said Dean’s account of what happened was inaccurate.
The New Albany, Ohio-based company is known for its edgy advertisements and shops with nightclub atmosphere. It has faced criticism in the past by those who claim it deliberately selects young, good-looking people to work in its stores.
In 2004 it spent $50 million to settle a number of employment discrimination lawsuits in the United States.
Official logo of Abercrombie & Fitch is the moose
The modern Canoe store design features white molding and louvers on the exterior. The main marketing image lies against the front wall facing the entrance.The interiors are highlighted with dim ceiling-lights and spot lighting. Distinguishable aspects are the lingering scent of Fierce, an A&F fragrance, and the blasting electronic dance music. An undercover inspection which measured the noise levels in teen stores in a randomly selected mall, revealed that the noise level in Hollister, Abercrombie & Fitch, and Abercrombie kids stores was as loud as 90 decibels, comparable to heavy construction machinery noise and harmful to the ears. However, 80 decibels is the corporate store policy sound level.
There are a few remaining chain store design which feature plaid carpeting and preppy wallpaper. The company operates 1,059 stores across all five brands. The A&F brand holds over 353[20] locations nationwide the United States, three in Canada, and one in London. Three flagship stores are located on Fifth Avenue in New York City, within the The Grove in Los Angeles, and at 7 Burlington Gardens in London.
he official logo of Abercrombie & Fitch is the moose. The company markets through its sensual photographs with a beach, architectural, or mountainous backdrop in grayscale. The marketing photographer is Bruce Weber, who is known for his sexual photography for Calvin Klein and Polo Ralph Lauren. Models and the photos pertaining to them were previewed seasonally on “A&F New Faces”, a previous feature on the official website. After only featuring select photography, it was renamed “Photo Gallery.” “A&F Casting” was introduced in place of “A&F New Faces” to advertise and to give information on being cast for marketing campaigns. The company only casts “brand reps” (store associates) for campaigns. They use especially good-looking models to attract young people to buy their clothes.
The company uses trademark Casual Luxury to promote the brand. The brand defines the slogan as using “the finest cashmere, pima cottons, and highest quality leather to create the ultimate in casual, body conscious clothing,” and “implementing and/or incorporating time honored machinery …to produce the most exclusive denim…”
The brand carries Men’s fragrances Fierce, Cologne 41, Proof, and Colden. Women’s fragrances include Perfume 8, Classic, Perfume 41, and Wakely. Released at the same time, Fierce and 8 and Cologne41 and Perfume 41 are marketed to compliment one another. High-end fragrances Ezra Fitch (cologne) and Ezra parfum were described as the embodiment of “the Abercrombie & Fitch heritage,” until they were discontinued. Cologne Proof was released in Christmas 2006 to be removed a year later (though some stores still carry Cologne Proof). Perfumes Ready is also among the retired fragrances. Fierce and 8 are the most heavily marketed fragrances as they are the signature scents of the brand overall.
As the popularity of Abercrombie & Fitch goods increased, so did the counterfeiting of them. In 2006, the company launched the Abercrombie & Fitch Brand Protection Program to combat the issue worldwide (focusing more in Taiwan, China, Hong Kong, Japan and Korea) by working with legal forces globally.[28] Shane Berry, who joined the company in November 2005, was placed in charge of the program. Berry is a former Supervisory Special Agent from the FBI, and was a part of its Intellectual Property Rights Program. The news release from A&F announcing its initiative stated that the “program will improve current practices and strategies by focusing on eliminating the supply of illicit Abercrombie & Fitch products.”
The Brand Protection program covers all A&F brands; mainly A&F, Hollister and RUEHL {shuttered by end of January 2010). Assuring that its consumers are aware of the issue, the Abercrombie & Fitch Brand Protection and abercrombie brand protection features suggest customers to purchase from authentic stores and to report suspected A&F counterfeiting.
The company’s Abercrombie and Fitch brand gift cards have been recognized by Consumer Affairs as a “top pick” for not having deceptive features such as expiration dates, dormancy fees, and post-purchase fees.
A&F currently has four other concepts apart from its namesake, Abercrombie & Fitch. While referred to as subsidiaries, the brands do not operate separately contrary to the definition; all brands are completely managed under the same Abercrombie & Fitch workforce. Abercrombie & Fitch Co. holds full rights and ownership to every trademark of the following brands.
Prep-school by Abercrombie & Fitch Themed as “classic cool” for preteens 9 through 14, this is the children’s version of Abercrombie & Fitch. Uses blue (against the A&F gray), blasts music from young artists, and spells marketing trademarks all-lowercase.
Southern California by Abercrombie & Fitch Themed after “SoCal” for teenagers 12 through 24, Hollister is moderately priced compared to its parent brand. The brand’s stores resemble surf shacks with dim lighting, and blast rock music. It is the first of these brands to offer a personal body care line.
Post-grad by Abercrombie & Fitch Themed after Greenwich Village, this brand aims for post-collegiate 25 through 35 aged consumers. It has the highest price range among the A&F brands. This is the first brand to offer genuine leather purses and bags for women.
The cheeky cousin of Abercrombie & Fitch Themed after “Down Under” Sydney, Australia. The latest brand from Abercrombie & Fitch, it offers underwear and loungewear for women 18 and up. There is an ongoing movement by parent A&F to advertise all its four children brands as being “…by Abercrombie & Fitch.” This is in effort to raise consumer awareness that the four brands abercrombie, HCO, Gilly Hicks, and RUEHL are BY A&F and are not stand-alone companies as some consumers believe. The anticipated result is a reputation-rise for the spin-off brands, by being advertised as being offspring of the successful Abercrombie & Fitch company.
The history of Abercrombie & Fitch spans over three centuries: the 19th, 20th, and 21st century. Key figures which changed and influenced the course of the Abercrombie & Fitch’s background exclusively include David T. Abercrombie (the founder), Ezra Fitch (the co-founder), Limited Brands and Michael Jeffries (current Chairman and CEO).
David Abercrombie founded the A&F in 1892 as a sporting goods store. Forming a partnership with Ezra Fitch, the company continued to economically expand into 20th century. After Abercrombie left, Fitch became sole owner and ushered in the “Fitch Years” of continued success. After his retirement, the company fell under succeding leaders until its financial fall and closed doors in 1977. Limited Brands purchased the ailing brand in 1988 and brought in Mike Jeffries who completely revolutionized the image of Abercrombie & Fitch in to an upscale youthful fashion retailer. Today, the company continues to experience economic expansion through the introduction of four growing concepts and cautious internation expansion into key markets.
Abercrombie In 1997 with 9 Stores
Looking at the July 29 calls in Coach (NYSE: COH), an investor sold 1,500 of these calls for 45 cents with the stock up 31 cents on the day to $26.55. We also saw call sellers in the July 30 calls, which were trading down five cents. The in-the-money July 30 calls were home to open interest of 1,972 contracts. It’s interesting that COH shares were up on a down market day, but an analyst from Lazard Capital raised his expectation of the company’s new “Poppy” collection because of a boost in media and customer buzz before it launches this Friday. Despite this rally, we saw at least one bearish investor betting that COH shares could drop below $30 in the next month.
We noticed some premium selling in retail stocks yesterday, as investors could be anticipating a pullback in names like COH. Other potentially bullish investors could be betting that stocks like JCP and ANF have downside limits in sight, at least for the next month. ONN.tv has remained bearish on the retail sector, but it’s interesting that some investors are betting that these stocks will not give back some of their gains in the near future.
Quick, call in more shirtless male models! Desperate times may be calling for desperate measures at Abercrombie & Fitch (ANF). Today, the retailer reported that same-store sales fell 28 percent in May, worse than the dismal 24 percent drop that analysts had expected. This comes as a blow to the retailer, which, in a recent change-of-heart, began deeply discounting its offerings in May. Meanwhile, one of Abercrombie’s biggest competitors, the more affordable and less sexy Aeropostale (ARO) posted a 19 percent surge in sales. So, Abercrombie can’t use the excuse that teens aren’t going to the mall. They are—they’re just spending their allowance elsewhere.
The real test for both stores, analysts say, will be the pre-September back-to-school rush. If the economic environment does not improve, Aeropostale and other reasonably priced stores are likely to keep up the momentum and continue to steal market share from their once-cooler rival. But Abercrombie could still surprise us as its new discounting strategy unfolds. If it’s enough to win back cost-conscious customers, the retailer might still have a dog or, um, a moose in the fight.
Among the premarket stories for Thursday, June 18, from AP Financial News:
NEW YORK (AP) — Abercrombie & Fitch Co. could post better earnings in 2011, propelled by lean inventory, deals on rent, better merchandise and lower prices, an analyst said, upgrading the stock.
NEW YORK (AP) — The9 Ltd. was downgraded Thursday by an Oppenheimer analyst, who predicted several quarters of operating losses after the company lost its license to operate “World of Warcraft,” the popular online video game.
NEW YORK (AP) — Market confusion over Melco Crown Entertainment Ltd.’s new City of Dreams casino in Macau provides a buying opportunity, a Deutsche Bank North American analyst said Thursday as she upgraded the company to “Buy” from “Hold.”
As part of its strategic relationship with Oracle, Abercrombie & Fitch has implemented Oracle Retail merchandising and stores applications to support its international expansion plans and long-term growth strategy. The Oracle Retail merchandising and stores applications are being rolled out across all of the leading fashion retailer’s brands including Abercrombie & Fitch, abercrombie, Hollister, RUEHL and Gilly Hicks.
To support its international expansion strategy, the retailer has adopted a centralised business model and is deploying a single instance of the Oracle Retail Merchandising System across the globe. As part of this effort, Abercrombie & Fitch implemented Oracle Fusion Middleware SOA suite components including the Oracle BPEL Process Manager to orchestrate the data exchanges between the Oracle merchandising environment, its legacy systems and other new systems.
Abercrombie & Fitch has realised immediate value from the Oracle Retail Merchandising System as a result of better data integrity, more efficient and accurate entry and ease of maintenance around the purchase order process. Abercrombie & Fitch is also implementing Oracle Retail Point-of-Service, Oracle Retail Central Office and Oracle’s PeopleSoft Enterprise Time & Labor across all of its brands to help maximise store profitability as well as to provide the scalable and flexible architecture needed to support the growing demands of the business.
Oracle Retail Point-of-Service is currently live in more than 20 stores and the retailer is rolling it out in all new stores opened across the globe this year. Abercrombie & Fitch expects the Oracle Retail stores application to be deployed at all store locations by the end of next year.Abercrombie & Fitch’s implementation of Oracle Retail Point-of-Service includes an on-screen keyboard and a streamlined user experience to support the retailer’s distinctive in-store experience. The retailer is currently in phase two of its merchandising and stores implementation. This phase will be live in the Fall of 2009 to support the international opening of stores in Milan and Tokyo. The Oracle Retail applications are being implemented and managed on Oracle Enterprise Linux to help provide a more flexible, reliable, and cost effective solution. The retailer has also standardised on Oracle Database 11g.
“There is no question that our strategic relationship with Oracle Retail is delivering meaningful value to our business and will take on an increasingly important role as we move forward with our strategy and key growth initiatives,” said Kristen Blum, Senior Vice President and CIO, Abercrombie & Fitch. “Oracle Retail not only provides us with industry-leading, best practice applications and technology, but they have partnered with us across the board to get maximum value out of the systems as we aggressively drive our business strategy.”
“Fashion is a fast-paced, challenging retail segment, and smart retailers like Abercrombie & Fitch recognise that the effective use of technology can help them better connect with their customers and create long-term competitive advantage,” said Duncan Angove, Senior Vice President and General Manager, Oracle Retail. “Abercrombie & Fitch have examined their business and strengthened their competitive position, and they will be well positioned to succeed and thrive as the retail industry overall returns to its dynamic nature.”
Oracle is a provider of innovative and comprehensive industry software solutions for retailers — enabling organisations to serve their customers better by applying insight into daily business decisions for more profitable results. With software that provides supply chain, operations, merchandising, store systems, optimisation as well as enterprise applications and infrastructure software, Oracle partners with the world’s leading retail companies, including 20 of the 20 top retailers worldwide, to transform the economics of their businesses.
Abercrombie Kids (marketed as “abercrombie” or “abercrombie kids”) is a American lifestyle brand from Abercrombie Co. This brand is the kid’s version of the popular Abercrombie & Fitch, with a “classic cool” theme targeted towards elementary/middle school individuals aged 7 through 14. Abercrombie kids offers apparel designed after the A&F “Casual Luxury” apparel but with smaller sizes and cheaper prices. Goods are sold in stores and at their website
Abercrombie & Fitch introduced abercrombie in 1997 with 9 stores. The purpose was to attract a younger audience to the American Abercrombie brand. The name of the concept took the same font of its parent, but with a navy color. The abbreviation from “Abercrombie & Fitch” to “abercrombie” with lowercase letters was intended to provide a children’s image. The store prototype was as the A&F one, but with variations also intended to appeal to the younger audience. Early abercrombie models include Ronnie Smith, Cassie Ventura, Christina Akatsuka, Christian Valentin, and Lindsay Lohan.
A favorite of theirs became Abercrombie sale
Despite the secretive nature, rumors circulated about a “distinct departure” from the A&F style. It was evident that A&F sought to maintain consumers past ages 18 through 22. The concept was to venture out as more mature and sophisticated, all the while keeping it youthful. Encouraging studies revealed that 35-to-40-year-olds shop to look 25. The brand was privately unveiled to investors-only on “Investor Day” September 7, 2004. The presentation was at Garden State Plaza in New Jersey.[11] At the introduction and press tour of the Westfield Garden State Plaza location, Jeffries noted that RUEHL is “the fantasy of what it’s like to graduate from college and go to New York and make it. It’s the New York fantasy.” He also repeatedly referred to RUEHL as “the movie” because of its elaborate, flowing background.
RUEHL No.925 finally opened on September 24, 2004 with three locations. These were at Garden State Plaza (New Jersey), Woodfield Mall (Illinois), and the International Plaza (Florida). Designed to look and feel like Greenwich Village, RUEHL really presented a new, “more sophisticated” lifestyle than other Abercrombie & Fitch brands. The store prototype of this time was a two-floor prototype measuring at 9,500 sq ft (880 m2). Due to its structural form and size, locations capable of housing the prototype became hard to acquire.
Mike Jeffries did not launch an online store upon the opening of RUEHL. He wanted to attract customers to the stores to experience the RUEHL atmosphere. What was launched was a promotional website which gave store listings, previewed the private online policy, and allowed for email subscription to receive news on RUEHL.
Original prices upon opening were roughly 30% higher than at Abercrombie & Fitch (e.g. destroyed blue jeans $148.00 USD[6]). Many consumers deemed this as too high for young professionals who normally begin their careers at fair incomes.
In June 2005, writer Alex Kuczynski published an article in The New York Times about her experience in the store at Garden State Plaza. She described the facade as “something provocative and different,” and compared the store greeter to a “nightclub bouncer on the watch for good-looking customers.” Kuczynski wrote that the store name conjures up actress Mercedes Ruehl and her hapless roles; “try as it might, the name just doesn’t sound cool.” She also criticized the lighting techniques, saying that the dimness may encourage shoplifting and that “people at that age [20’s and 30’s] aspiring to the heights of sangfroid that Ruehl appears to promote would never deign to exert effort to find the right size, let alone spend 10 minutes squinting at a skirt to discern its color”, a shame because “the clothing is worth the time and the money.” She said prices were “reasonable”, giving as an example $158 for the best-selling “destroyed” blue jeans.
The advertisement for the launch of the online store.In early 2007, RUEHL925.com became RUEHL.com and was upgraded as an Adobe Flash Player page. Also, to accommodate expansion, a new store prototype was developed measuring at 7,200 sq ft (670 m2). This new prototype encompasses one sales level only, reducing construction costs and increasing opportunities to secure prime locations.[12] A limited online store was finally launched on October 25, 2007. It sold fragrances and handbags in a limited quantity of styles. By the end of the year, in an effort to retain consumer basis, price points for RUEHL clothing were significantly lowered as so to create a minimal 10-15% difference between Abercrombie & Fitch and RUEHL No.925 clothing. A&F rose its jeans prices to make a $10 USD difference between its jeans and RUEHL’s. January 30, 2008 marked the launch of the full online store.
RUEHL marketing photography has a blue color scheme and is more sophisticated than Abercrombie & Fitch. Noticeably, some imagery uses angles of Greenwich Village as a backdrop. Jeffries has made it clear that sex in marketing is a continual importance in RUEHL advertising.[7] For that reason, Bruce Weber shoots all campaigns. He is most noted for his provocative and sexual, beefcake work with Calvin Klein underwear and A&F. Photography from RUEHL’s early days evolved from sepia and dark green color schemes before settling on blue. High-profile models have appeared in RUEHL marketing campaigns, including Miranda Kerr and Kim Stolz.
The brand has used the appropriate slogan, “Visit us in the Village.” Its main marketing logo “RUEHL / No.925 / Greenwich Street / New York” has been revised and replaced with “RUEHL / No.925 / Greenwich St / New York, NY”. It mimics as an actual address. And unlike other A&F brands which rely on and owe their success to walking self-marketing in schools, RUEHL must follow more rigid advertisement techniques to make itself more known to the public.
Marketing techniques used on RUEHL have not benefited revenue expectations for the brand. The average RNY store generated sales of over $3.2 million USD in 2006. In comparison to Hollister’s outstanding popularity and sales by 2004 (four years after its opening), revenue from RUEHL by 2008 has not been satisfying. Giving R925 more of a resemblance to the A&F style (noticeable on Hollister), but maintaining flare, is a marketing move being practiced to increase figures (by attracting same-company customers). Potted palm trees (found in A&F/HCO stores) have been added instore. The “RUEHL No.925″ name is stamped and embroidered more noticeably. Recently reduced price points will also make it easier for same-company customers to enter the RUEHL market, and the new store prototype will gain faster expansion than before. Even production rollouts have been made similar to its sister brands. A&F hopes that RUEHL will eventually grow as a strong, popular, post-grad brand: similar to A&F with collegiates and Hollister with high-schoolers. Customers seeking a more dark and mature look will find RUEHL their choice out of all Abercrombie and Fitch’s brands.
The official logo for RUEHL No.925 is the French bulldog Trubble. He is the little “inquisitive” bulldog with a “steadfast demeanor” and “confident attitude” who walked into the Ruehl family shop in the mid-1850s - so states the fictional background to RUEHL. He was, as the fake literature continues, the family’s first customer (to their surprise and delight). Subsequently, Trubble became the logo for the brand.
His name, “Trubble”, is a play on the word “trouble.” It signifies the trouble that Mike Jeffries and his development team underwent to create an appealing logo for RUEHL. Before deciding on Trubble, the company experimented with different designs on RNY polos. The logos included: “R925″; an artistically cursive “R”; and “RUEHL / No.925″. The bulldog from the RUEHL background was finally selected and christened “Trubble” - a sort of counterpart to the Abercrombie moose, the flying Hollister Co. seagull, and the Gilly Hicks Koala. Trubble is today embroidered on Polos and silk-screened on other merchandise. Trubble also occasionally has a series of tees dedicated to his iconic image.
RUEHL released the marketing slogan “Get into Trubble at RUEHL” in August 2008.
Merchandise cycles in stores weekly and there are four main seasonal clothing rollouts. These are the Spring, Summer, Fall, and Christmas seasons. In efforts to entice consumers, books, newspapers, and fresh flowers are also on sale. Merchandise is made only available in RUEHL stores and at RUEHL.com.
The sophisticated Ezra Fitch Collection by Abercrombie & Fitch released in 2004 and discontinued later on shares a similarity to RUEHL clothing.
For its fragrance collection, RUEHL carries Signature (both cologne and perfume) and R-4 perfume and R-7 cologne. Signature cologne is the representing scent of the brand, and is sprayed at intervals throughout the day in-store.
RNY became the first in the chain of Abercrombie sale brands to produce a genuine leather goods line for both men and women. Because of low purchasing rates, however, the men’s leather goods were discontinued (e.g. wallets and messenger bags). Women’s bags, however, remain quite popular. Purse prices are at level with Coach prices for competition. However, some RUEHL purses have reached the amount of $898 USD. Celebrity patrons of RUEHL who enjoy the bags include Ali Larter, Katherine Heigl, Minka Kelly, and Vanessa Ann Hudgens. A favorite of theirs became “Anabelle,” a white leather clutch which “…is everything that this season’s It bag wants to be.”
It has been a difficult decision to close RUEHL, a brand we continue to believe could have been successful in different circumstances. However, given the current economic environment, we believe it is in the best interests of the Company to focus its efforts and resources on the growth opportunities afforded by our other brands, particularly internationally. While I am disappointed with the ultimate outcome, I am grateful for the effort and commitment the RUEHL team has shown in developing and positioning that brand in the marketplace. In particular, the recent strides made in differentiating and elevating the RUEHL assortment make this an especially difficult decision. However, all of our brands will benefit from our experience and lessons learned with RUEHL.
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