History of Abercrombie & Fitch
| Company type | Private (historically) |
|---|---|
| Industry | Retail, Sporting goods, Apparel |
| Founded | June 4, 1892 in New York City, U.S. |
| Founder | David T. Abercrombie, Ezra Fitch |
| Fate | Filed for Chapter 11 bankruptcy protection in 1976; acquired by Limited Brands in 1988 |
| Headquarters | New York City , United States |
Area served | International |
Key people | Michael Jeffries (former chairman and CEO) |
| Products | Sporting goods, apparel, accessories |
| Parent | Limited Brands (from 1988) |
The evolution of Abercrombie & Fitch spans from the late 1800s into the modern era. Influential individuals who shaped the brand's trajectory include its original founders David T. Abercrombie and Ezra Fitch, as well as corporate entities like Limited Brands and executives such as Michael Jeffries, the former chairman and CEO.[1]
David Abercrombie launched A&F in 1892 as a premium sporting goods retailer. The company expanded in the early 20th century through a partnership with Ezra Fitch. When Abercrombie departed, Fitch assumed full ownership, initiating what became known as the "Fitch Years," marked by steady growth. Following Fitch's retirement, leadership changes continued until financial difficulties led to the company's closure in 1977. Limited Brands acquired the struggling label in 1988 and appointed Mike Jeffries, who transformed Abercrombie & Fitch into a high-end brand targeting a youthful market.
Founding
Originally founded as Abercrombie Co. by David Abercrombie on June 4, 1892, the business began in a modest waterfront location at 36 South Street in lower Manhattan, New York. Ezra Fitch, a prosperous New York entrepreneur, was among its frequent patrons. In 1900, Fitch acquired a substantial stake in the expanding Abercrombie Company, becoming a co-founder.
The collaboration between Abercrombie and Fitch was marked by conflict due to divergent visions for A&F’s direction, despite ongoing commercial success. Fitch aimed to broaden the brand's appeal to a wider audience, while Abercrombie preferred focusing on specialized equipment for professional outdoorsmen.[2] Due to these differences, Abercrombie sold his shares to Fitch in 1907 and returned to manufacturing outdoor products.[3] Fitch then continued managing the company alongside other partners according to his vision.
The Fitch Era
In 1909, Abercrombie & Fitch Co. distributed more than 50,000 copies of its extensive 456-page catalog internationally—a remarkable and expensive publishing endeavor at the time, with each catalog costing approximately one dollar to produce. The publication showcased outdoor apparel, camping equipment, articles, and expert advice columns. Although the expense nearly led the company to financial ruin, the catalog ultimately became an effective promotional tool. Shoppers could access the catalog free of charge within the store. By 1910, Abercrombie & Fitch expanded its offerings to include women's apparel, becoming New York’s pioneering retailer to provide clothing for both men and women.
In 1913, the company relocated from Reade Street—a location inconvenient for female customers—to a more prestigious and accessible midtown site at 55/57 West 36th Street near Fifth Avenue, simultaneously broadening its merchandise to incorporate sportswear. Four years later, in 1917, Abercrombie & Fitch moved into a newly constructed 12-story building positioned at the intersection of Madison Avenue and East 45th Street, occupying the entire structure.
The Madison Avenue flagship featured numerous specialized facilities. The basement contained a shooting range; on the mezzanine level (main floor), customers found equipment for skiing, archery, freediving, and lawn games. Floors two through five were dedicated to apparel designed for various climates and terrains. The sixth floor housed a picture gallery, a sport-themed bookstore, a watch repair workshop, and a golf school staffed by a resident professional instructor. The seventh floor included a gun room stocked with hundreds of shotguns and rifles and was adorned with mounted game heads; it also featured kennels for dogs and cats. The eighth floor offered fishing, camping, and boating supplies, including an instructor’s desk for fly- and bait-casting lessons held in the rooftop pool area. The fishing department alone boasted an inventory exceeding 48,000 artificial flies and more than 18,000 lures.
Abercrombie & Fitch Co. was the first American retailer to import Mahjong sets. Ezra Fitch introduced the game after a female client sought it following her experience playing in China. He traveled to China to acquire Mahjong sets and translated the instructions into English. The game quickly became a bestseller, establishing Abercrombie & Fitch as the central hub of the Mahjong craze in the United States. Company representatives were dispatched to Chinese villages to purchase as many sets as possible, ultimately selling over 12,000 units.
In 1927, Abercrombie & Fitch provided outfitting for Charles Lindbergh during his legendary transatlantic flight. The store also attracted numerous other notable clientele during this period.
Post-Fitch period
In 1928, Fitch departed from the business, selling his stake to his brother-in-law, James S. Cobb.[3][4] Under Cobb's leadership, Abercrombie & Fitch expanded by acquiring Von Lengerke & Detmold, a prominent New York retailer specializing in high-quality European sporting firearms and fishing gear, along with its Chicago branch, Von Lengerke & Antoine. Cobb also purchased Griffin & Howe, another distinguished gunsmith firm. Products from both Von Lengerke & Detmold and Griffin & Howe were available at A&F’s Madison Avenue location.[4] By this stage, the company had diversified to include equipment for polo, golf, and tennis.[4] In 1929, Abercrombie & Fitch reported revenues of US$6.3 million with net earnings of US$548,000.[4]
The Great Depression caused a downturn in the company's income, leading to a suspension of dividend payments. Sales plummeted to $2,598,925 by 1933. However, the firm rebounded over subsequent years and reinstated dividends by 1938.[4] That year, firearms represented 40% of sales at the Madison Avenue flagship.[4] Apparel, footwear, and accessories made up 45%, while inventory levels were maintained at approximately 40% of annual sales—demonstrating A&F’s commitment to meeting customer demand.[4] Mail order sales via catalog contributed around 10% of total revenue.[4] Abercrombie & Fitch Co. continued its growth trajectory and had adopted the motto "The Greatest Sporting Goods Store in the World" as early as 1913.[4]
In 1947, the company achieved a record net profit of $682,894.[4] A large branch was inaugurated in San Francisco in 1958. Subsequently, seasonal stores were launched: winter-only shops operating from November through May in Palm Beach and Sarasota, Florida, along with summer-only outlets in Bay Head, New Jersey and Southampton.[4] These complemented an existing store in Hyannis, Massachusetts that had been running since shortly after World War II. Leadership passed to Otis Guernsey following Cobb’s tenure.[4] Guernsey noted, "The Abercrombie & Fitch type does not care about the cost; he wants the finest quality."[4] Despite multiple locations opening under Abercrombie & Fitch’s control, the Madison Avenue store remained its flagship.[4] The main floor of this flagship was renovated during the 1950s to feature taxidermy displays including buffalo, caribou, moose, elk heads, large stuffed fish specimens, and elephant-foot wastebaskets.[4]
By 1960, net sales increased to $16.5 million; however, net profits declined for the fourth consecutive year to $185,649.[4] The following year saw net sales fall to $15.5 million and profits drop further to $124,097. John H. Ewing succeeded Guernsey as president but appeared unconcerned about the sales downturn.[4] In a 1961 interview with Business Week, Ewing emphasized Abercrombie & Fitch’s distinct market position by stating they succeeded "by sticking to our knitting; by not trying to be all things to all people."[4] Expansion continued with a year-round resort store opening at The Broadmoor resort in Colorado Springs in 1962 and the first suburban outlet launching at the Mall in Short Hills, New Jersey in 1963. Under Earle K. Angstadt Jr.’s direction, Abercrombie expanded further into upscale venues such as Bal Harbour Shops near Miami Beach, Florida (1966), Somerset Mall in Troy, Michigan, outside Detroit (1969), as well as boutique stores within other department stores.[4]
In 1964, Abercrombie and Fitch became an early example of "brand integration" through product placement by serving as a location for part of the romantic comedy film Man's Favorite Sport?, starring Rock Hudson and Paula Prentiss.
During 1968 and early 1970, Abercrombie & Fitch held warehouse sales accompanied by unconventional newspaper advertisements that suggested a degree of desperation.[4] The company’s revenue continued its downward trajectory with an approximate loss of $500,000 in the previous fiscal year. Observing that these promotions attracted customers considered outside A&F’s traditional clientele, incoming president William Humphreys—formerly with Lord & Taylor—terminated these tactics.[4] Humphreys concentrated on refining inventory management and credit policies while reducing operational expenses;[4] he also revamped store design to convey a refreshed image and initiated suburban expansion starting with an Oak Brook location in Illinois (1972) aimed at recapturing shoppers who had abandoned downtown Chicago's Loop store.[4] Recognizing that offbeat advertisements drew an unintended audience not aligned with classic Abercrombie & Fitch clientele, these ads and sale events ceased in October 1970.[4] The flagship store’s presentation was altered accordingly: costly sailboats were relocated from the main floor to upper levels; a discount apparel section was introduced on the tenth floor; sportswear assortments were broadened; and new buyers were appointed for women's fashion.[4] Despite these initiatives, sales failed to improve and financial decline persisted under Humphreys and his successor Hal Haskell—a significant shareholder.[4] After recording losses totaling $1 million in 1975, Abercrombie & Fitch Co. filed for Chapter 11 bankruptcy protection in August 1976 and ultimately shuttered operations by November 1977.[5]
In 1978, Oshman's sporting goods chain purchased Abercrombie & Fitch Co. for $1.5 million[6][7] (equivalent to $5.2 million in 2013 dollars).[8] Oshman’s opened an Abercrombie & Fitch store in Beverly Hills in 1979 and another larger location in Dallas featuring $40,000 elephant guns and an "Abercrombie Runabout sports convertible" valued at $20,775.[4] Additional stores were launched at South Street Seaport and Trump Tower catering to contemporary interests such as golf, fitness activities, and tennis.[4] Apparel lines included business wear alongside casual clothing and sportswear for both men and women.[4] Forbes characterized the merchandise assortment as "a hodgepodge of unrelated items," suggesting that sometimes it is preferable "to bury the dead rather than attempt their revival." Abercrombie & Fitch continued facing challenges as Oshman’s struggled to establish a clear identity for the brand.[9]
1988 to 1999: Transformation into a fashion retailer
In 1988, Limited Brands purchased the struggling company for $47 million, following their successful efforts with brands such as Express and Victoria's Secret. The corporate headquarters were relocated to Columbus, Ohio, and the existing stock was completely liquidated. Sally Frame-Kasaks, appointed as Abercrombie & Fitch’s new president, shifted the company’s focus heavily towards clothing. In 1992, Michael S. Jeffries, an experienced apparel executive, assumed the role of president. He transformed Abercrombie & Fitch from a declining sportswear brand into a leading teen fashion retailer. Jeffries recognized the financial potential in targeting the American teenage demographic, which was experiencing rapid growth in retail spending at that time.
Soon after, Abercrombie & Fitch reopened with a preppy outdoor-inspired aesthetic that echoed its original heritage. Jeffries enlisted Bruce Weber, renowned for his provocative beefcake photography, as the lead photographer responsible for shaping the brand's advertising campaigns. Later, fashion photographer Herb Ritts also contributed to these efforts. These campaigns garnered Abercrombie & Fitch a dedicated following within the gay community.
The product range featured woven shirts, denim jeans, miniskirts, cargo shorts, wool sweaters, polo shirts, and T-shirts—priced significantly higher than typical teen apparel brands. Sales climbed steadily: $85 million in 1992, $111 million in 1993, and $165 million by 1994. By 1994, the chain had expanded to 49 stores with plans to reach 102 by the end of 1995. That year also marked new records in merchandise margins and profitability for Abercrombie & Fitch under its parent company, The Limited. To stay relevant with youth culture trends, Jeffries recruited executives tasked with monitoring popular teenage clothing styles, music, and entertainment.
By the mid-1990s, Abercrombie & Fitch had established numerous outlets throughout the United States. On September 26, 1996, The Limited took Abercrombie & Fitch public on the New York Stock Exchange under the ticker symbol "ANF," with an initial share price of $16. Toward the late 1990s, the company shifted its store development strategy to focus on locations averaging between 8,000 and 20,000 square feet situated in high-traffic retail centers nationwide. Additionally, it introduced the canoe store prototype featuring a white exterior facade and gray interior walls to support brand growth.
In 1997, Abercrombie & Fitch debuted A&F Quarterly, a publication containing photography, interviews, and articles covering topics such as sex and pop culture relevant to teenagers. The following year saw the launch of its first subsidiary brand aimed at younger customers aged 7 to 14—Abercrombie kids. Beginning in 1999, Abercrombie & Fitch became involved in a three-year class action lawsuit alongside other American retailers concerning sweatshop labor practices in Saipan. At the close of fiscal year 1998, Abercrombie & Fitch reported revenues of $805.2 million. That same year marked its transition into an independent company with Mike Jeffries assuming both Chairman and CEO roles. As Abercrombie & Fitch regained prominence within the industry, analysts debated how long its popularity would endure.
Despite predictions of decline, sales continued to rise following a controversial Christmas season in 1999 when A&F Quarterly featured sexually explicit content that sparked public backlash. That year also saw the introduction of "A&F TV," showcasing young people participating in sports and leisure activities; initially designed for cable television and in-store monitors before being discontinued. Fiscal year 1999 revenues reached $1.030 billion.
By decade’s end, Abercrombie & Fitch’s marketing approach appeared to resonate more strongly with male consumers than females—who tended to favor competing retailers more frequently. Throughout the 1990s, the company consistently achieved sales exceeding $400 per square foot ($4,300 per square meter). By December 1999, Abercrombie & Fitch operated a total of 212 stores across the United States.
From 2000 onward
At the dawn of the new millennium, Abercrombie & Fitch ranked as the sixth most favored brand among teenagers, surpassing notable names such as Nintendo and Levi's. In July 2000, the company unveiled its third brand, Hollister Co., which embraced the Southern California surf culture and targeted a high school demographic. Following a decline in Abercrombie & Fitch’s revenue attributed to Hollister's launch, the company introduced the Ezra Fitch line, focusing on garments crafted from superior materials and commanding higher price points. By 2001, operations had relocated to a newly built 300-acre (1.2 km2) headquarters in New Albany, Ohio, which underwent further expansion by 2003. That same year marked the final publication of A&F Quarterly due to mounting criticism.
Following Hollister's success, Abercrombie & Fitch launched its fourth brand, RUEHL No.925, on September 24, 2004, aimed at consumers aged 22 to 35. The company’s revenue continued its upward trajectory, reaching $2.021 billion in 2004. November 2005 saw the opening of Abercrombie & Fitch’s inaugural flagship store on Fifth Avenue. Around this time, the brand began repositioning itself toward a near-luxury market segment by adopting the promotional tagline Casual Luxury. Revenue for 2005 remained steady at $2.021 billion.
The company's Canadian footprint expanded in January 2006 with the launch of two A&F stores and three Hollister Co. outlets in Toronto and Edmonton. A third A&F store opened later that year in the Toronto Eaton Centre, while a west coast flagship debuted at The Grove. Reported revenues for 2006 surged to $3.318 billion, reflecting an increase exceeding $1.297 billion compared to the previous year.
In early 2007, Abercrombie & Fitch updated its canoe store design by incorporating dark louvers (as shown in the adjacent image). On March 22, 2007, the company inaugurated its first European flagship at 7 Burlington Gardens on Savile Row, London. This location achieved approximately $280,000 (£140,000 GBP) in sales within its initial six hours and became one of the brand’s most lucrative outlets until its closure in 2020. The fiscal year culminated with record revenue of $3.749 billion.
On January 21, 2008, Abercrombie & Fitch introduced its fifth brand concept: Gilly Hicks, an intimate apparel line inspired by "Down Under" culture and branded as the "Cheeky cousin of Abercrombie & Fitch." In April of that year, A&F Quarterly was revived exclusively for distribution within the UK flagship store. The company mourned the loss of director Allan A. Tuttle on August 31, 2008. By December 22, a new employment contract was finalized with CEO Mike Jeffries extending through 2014. Fiscal 2008 marked a downturn with revenues falling to $3.540 billion amid an economic recession; this was partly due to the company's deliberate choice not to reduce prices or offer discounts in order to preserve its near-luxury brand image.
As economic challenges persisted during the late-2000s recession, Abercrombie & Fitch faced financial difficulties exacerbated by its reluctance to lower prices or provide sales promotions. Early January 2009 reports indicated significant declines in sales and stock performance. Subsequently, approximately 50 employees were laid off by month-end with numerous vacancies remaining unfilled; an additional 170 staff were dismissed by May. On June 17, 2009, Abercrombie & Fitch announced plans to discontinue the Ruehl No.925 brand by January 2010 due to underperformance. October saw the launch of the company’s official Facebook page and the opening of a second European flagship store in Milan on October 29—an event described as having received unprecedented consumer enthusiasm within Abercrombie & Fitch’s history. December brought another milestone with the debut of its first Asian location in Tokyo, Japan; this grand opening attracted massive crowds and generated approximately JP¥50 million (US$550,000) in sales on opening day alone.
In January 2010, Abercrombie & Fitch launched "A&F Cares," highlighting its charitable initiatives. The company officially ceased operations of ruehl.com on January 22 and closed all remaining Ruehl stores by month’s end. Analysts noted promising financial signs by March attributed to successful international expansion and improved inventory controls. During this period, a vintage fishing line dryer produced by Abercrombie & Fitch in the early twentieth century was sold for US$590 to an A&F model. As part of a marketing strategy, A&F Quarterly was relaunched on July 17 as a component of the "Screen Test" Back-to-School campaign aimed at boosting consumer engagement and sales volume.
In August 2010, CEO Mike Jeffries announced plans to shutter roughly 60 stores during that year; CFO Jonathan Ramsden later suggested that an additional 50 closures might occur in 2011. By September, profits exceeded expectations due largely to successful promotional campaigns and seasonal sales events. By October, Abercrombie & Fitch had surpassed competitors for the first time since the economic downturn began. New flagship stores opened in Copenhagen and Fukuoka during November 2010 followed by another flagship launch in Paris by May 2011.
On February 15, 2012, Abercrombie & Fitch declared intentions to close approximately 180 underperforming U.S.-based stores by 2015 while continuing expansion efforts across European and Asian markets.[10]
In 2013, Abercrombie & Fitch’s fashionable upscale reputation suffered after resurfacing comments made by Jeffries in 2006 disparaging customers whose body types did not conform to those featured in A&F advertising campaigns. The backlash culminated in a viral initiative known as "Fitch the Homeless," which sought to challenge and parody the brand’s exclusive image by distributing used Abercrombie & Fitch apparel to homeless individuals.[11]
The Hollister flagship outlet located in New York City ceased operations in 2019. By 2021, multiple Abercrombie & Fitch flagship stores across Europe and Asia—including locations in Düsseldorf and Munich (Germany), London (England), Paris (France), Brussels (Belgium), Madrid (Spain), and Fukuoka (Japan)—were shuttered.[12] Although plans were announced for closing the original New York City flagship store as well, it has remained operational to date.
References
Notes
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- ↑ The History of Abercrombie and Fitch Archived 2008-10-22 at the Wayback Machine
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