Despite seeming contrary to common sense, a brand's popularity can become a disadvantage. For a considerable period, Abercrombie & Fitch set fashion trends, dictating to consumers what was fashionable, rather than the reverse, and this approach was successful. That is, until it ceased to be.
TL;DR
- Abercrombie & Fitch CEO Fran Horowitz aims for a "lifestyle" brand, not fleeting "coolness."
- Horowitz revitalized Abercrombie & Fitch by empowering employees and stopping trend chasing.
- The brand's revenue nearly doubled, with projections exceeding $5 billion for both Abercrombie & Fitch and Hollister.
- Collaborations with Macy's and the NFL are key strategies for customer acquisition and brand awareness.
Ten years back, the “It” brand, prominent in the 2000s and early 2010s, experienced a downfall. Consumers were repelled by the overly sexualized advertising and the management's dismissive stance towards shoppers deemed not fashionable enough for Abercrombie & Fitch apparel.
When Abercrombie CEO Fran Horowitz, who previously served as president of A&F’s sister brand Hollister, began revitalizing the parent company in 2017, she faced a significant challenge. According to a Coins2Day feature in 2022, she abandoned the command-and-control management style of her predecessors, opting instead to empower employees at all levels with greater input. She also improved the quality of the apparel and, importantly, chose to stop pursuing fleeting trends.
“‘Cool’ is a tough word,” Horowitz told the Coins2Day Most Powerful Women Summit in Washington, D.C., on Wednesday. “It’s not what we’re aspiring to be. We’re aspiring to be a long-lasting lifestyle brand that someone can wear and enjoy for many, many years.” (Her sentiments echo those of designer Ralph Lauren, who once famously said, “I don’t want to be too hot.”)
Horowitz's approach has proven effective. Abercrombie & Fitch's revenue almost doubled, reaching $2.6 billion from 2019 to 2024, and Hollister, which had faced difficulties, also experienced significant growth. This year, the combined revenue from both brands is projected to surpass $5 billion for the first time.
Horowitz's primary challenge involves sustaining that upward trajectory. One strategy she's utilized is pursuing fresh collaborations. This past summer, Abercrombie Kids began offering its apparel at Macy's retail locations. In a separate development, the National Football League selected Abercrombie & Fitch as its inaugural fashion associate, with the store now stocking items like mesh tops and quarter-zip pullovers representing all 32 NFL franchises.
The upside of the NFL deal, Horowitz said, is the exposure to millions of NFL fans, half of whom are women. The CEO says that group hasn’t always been well served by team merchandise that too often has been “pink and sparkly”—not the more sophisticated products she is betting they want to wear on game day.
“The opportunity for us specifically is customer acquisition and brand awareness,” said Horowitz, a New York Giants fan. “Even though 50% of their fandom is female, perhaps they’re not recognized or celebrated as much as they can be, and they haven’t been served by merch exactly.”