A: COMPANY BACKGROUND
1. Profile: Abercrombie & Fitch (A&F) is a US-based chain retailer of casual apparel and accessories. The company's trademark brands include Abercrombie & Fitch, Abercrombie, Hollister, and RUEHL.
The Company is engaged in selling an array of products including casual sportswear apparel, including knit and woven shirts, graphic t-shirts, fleece, jeans and woven pants, shorts, sweaters, outerwear, personal care products, and accessories for men, women and kids. Abercrombie & Fitch Co. sells its products at primarily mall-based retail locations, as well as through online stores and catalogues. Abercrombie & Fitch prides itself in being the most successful specialty retailer in operation today. Their casual, classic, all-American lifestyle brand of clothing is synonymous with quality. Abercrombie & Fitch does not franchise its stores.
As of January 28, 2012, A&F operated 946 stores in United States and 99 stores outside of the United States. The Company operates in three segments: U.S. Stores, International Stores, and Direct-to-Consumer. The U.S. Stores reportable segment includes the results of stores in the United States and Puerto Rico. The International Stores reportable segment includes the results of stores in Canada, Europe and Asia. The Direct-to-Consumer reportable segment operating income is defined as income directly associated with the Website operations, both domestic and international.
2. SWOT Analysis
* Solid financial position
* Good quality clothing
* Good looking employees, attracts crowds
* Loyal customer base, A&F Juniors generally graduate to A&F * Effective marketing strategy, targeting a niche brand of trendy prep school students * Strong market position, early mover advantage
* Good reputation - brand recognized internationally
* Controversial marketing strategypictures are too provocative, some people have...
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