From the stars, to the rags, to the stars. The path of the American clothing company can thus be traced Abercrombie & Fitch. This year they are exactly 10 years since Michael Jeffries, the longtime and eccentric CEO of the Ohio-born company, was forced out under the pressure from investors, after numerous balance sheets in the red and the stock market stock in free fall. In these 10 years the company has had to redo a soul, a look, a new history to be able to get back on top. Now the estimates for the fiscal year (which ends in March) are for a good increase in sales and the stock market is sparking. Is this the comeback of the brand that fascinated teenagers all over the world in the 90s? Maybe. Certainly in a different way. Let's see how.
Abercrombie, the pinnacle of success in the 90s
During the 90s, A&F had become famous throughout the world for its charming model shop assistants who showed up bare-chested and with well-built muscles at the doors of the shops and had themselves photographed with Polaroids with the young customer-customers who were about to immerse yourself in the twilight, in the club music and in the scents of the warehouse. In the United States, it was ubiquitous, seen in shopping malls, high school and college campuses, where models were recruited to become brand ambassadors or store clerks.
Jeffries' ouster, the accusations, the documentary, the collapse
Jeffries, CEO for nearly 22 years, was a stickler for detail in communicating the image he had in mind for A&F. But he exaggerated. For example, he didn't like the presence of overweight young people in his stores, but only "thin and beautiful people": for this reason, women's sizes larger than 44 were prohibited in the brand's stores, while those for men's items go up to to XXL. “Natural, American, Classic” was the official definition of Abercrombie & Fitch style, which basically translated into a slew of thin, young, Caucasian employees.
This discriminatory attitude, combined with the high prices of the garments, compared to other clothing chains for teenagers, is according to many the cause of the company's crisis: in January 2014 Abercrombie & Fitch recorded the eighth consecutive quarter in a loss and the shares had lost about a quarter of their value in a year. Too much. Thus Jeffries was forced to leave the position of president of the group, giving in to pressure from investors.
The rapid rise and fall of the company set a precedent and was also told in a documentary, White Hot: The Rise & Fall of Abercrombie & Fitch, distributed by Netflix. In addition to analyzing the aspirational nature of the brand, it sheds light on the lawsuits and public relations disasters that have tarnished its image and made it the worst brand of 2016. According to former co-workers, journalists and activists who appear in the film, behind that alluring image was a corporate culture that turned away both potential employees and customers based on their race and physical appearance. It was a workplace where discrimination was a business choice rather than a problem to be solved.
Abercrombie, the change of direction
Exactly ten years after Jeffries' departure, the company has just concludedeleventh consecutive quarter of growth of net sales. In the last year ha its share price tripled and finished with his better performance since it was listed on the stock exchange in 1996.
In the US session yesterday it closed at 120,90 dollars, up 0,92%. In the last year it gained 318,34%. In the last 5 years it has gained 486,04%.
In particular for thecurrent fiscal year (which closes in March) A&F expects a sales growth net included between the 14% and the 15%, with an upward revision compared to the previous estimate (12-14%). Once Jeffries left, A&F completely changed its strategy and went from being the most hated clothing retailer in the United States - according to a survey by the American Customer Satisfaction Index - to the trendiest among Millennials younger and Gen Z more mature, who have no memory of the scandals linked to the brand.
The new strategy, the role of TikTok, the connection with McLaren
In these 10 years, inclusiveness has paid off. The company, which now has Kristin Scott as its global president, has not only abandoned the idea of the “perfect salesperson,” but has also introduced new sizes and more lengths of jeans, designed for different body types. The moose symbols have been removed from his t-shirts and the brand logos on the t-shirts have been significantly reduced. After closing the only one shop in Italy in Milan, in the very central Corso Matteotti which A&F had opened in 2019, reopened a new Italian store in 2022 in the Arese shopping center, in the province of Milan, "Il Centro". He replaced the old advertising campaigns, with super models, with one host of influencers that above all on TikTok they attracted their peers by exploiting both the theme of inclusion and nostalgia for 90s fashion, going viral with hashtags like #AbercrombieIsBack, #AbercrombieHaul and #AbercrombieStyle.
Not only. It is these days the news that Abercrombie & Fitch has become official partner of McLaren racing, continuing its collaboration with the British Formula 1 team, which began last year with a special capsule that went viral on TikTok. On this occasion, a new clothing line consisting of sweatshirts and T-shirts, events and the creation of content on social media will be planned. Furthermore, the new car for the 2024 season of the English team has already appeared in the American brand's Fifth Avenue store. Additionally Abercrombie announced a digital competition on his TikTok profile, which offers fans the chance to win a trip to enjoy the Miami Grand Prix weekend, scheduled for May 3-5, a McLaren replica helmet signed by driver Lando Norris as well as products from the Abercrombie x McLaren collection.
Jeffries is accused of sexual exploitation and abuse
But not everything is forgotten. A few weeks ago, the FBI opened an investigation into former A&F boss Jeffries (now in his eighties) and his partner Matthew Smith, following aBBC investigation. The accusations, which Jeffries and Smith deny, are of sexual exploitation and abuse. The two are also accused in a civil case of sexually abusing more than 100 young men in a sting operation. sex trafficking financed by A&F.
