Abercrombie & Fitch: how the American fashion giant became cool again

Topless models inviting you to shop collegiate fashion in a dimly lit store – it could only be Abercrombie & Fitch. A noughties favourite and leader of style for teens over many decades, Abercrombie jumpers, Hollister T-shirts and Gilly Hicks underwear all played a part in the group catapulting to noteriety in its heyday. 

But after years of dominance it started to lose its cool. Abercrombie & Fitch failed to grow up with its customers, and a series of c-suite scandals and bad behaviour meant the glory days were soon over and it became a brand nobody wanted to be seen in.

The fashion retailer even became subject of a 2022 Netflix documentary White Hot that explored the rise and fall of the brand and exposed its deemed “racist and exclusionary practices” over the years, which only made things worse.

But having recently achieved a record billion-dollar first quarter that also saw profits triple and an increased full-year sales guidance, Abercrombie & Fitch is flying high once again.

With “light and bright” stores, a more diverse workforce, a fan club on TikTok and rumours of an upcoming return to old markets, it’s clear the brand is well and truly in its comeback era.

Retail Week takes a look at the key factors that were vital in reviving the brand and how current chief executive Fran Horowitz seemingly came to the rescue at just the right time.

Becoming cool again

In recent years the so-called ‘cool’ fashion retail brands have included the likes of Zara, Stradivarius, Urban Outfitters – and now Abercrombie & Fitch has joined the club once again.

As the original Abercrombie customer aged and the big logos, shirtless models and dark stores struggled to land with Gen Z, it was time for a shake up. Historically, Abercrombie was often criticised for not being diverse or size inclusive enough, as such it had to shift its focus in order to regain the attention of younger shoppers in a new era.

Lumina Intelligence senior retail analyst Beth Bloomfield says Abercrombie’s focus on the customer, through its launch of things such as its ‘curve love’ range, and the buzz around the brand on social media have contributed to its rebirth.

She adds that Abercrombie customers are now considered “brand advocates” across social media, with TikTok hauls and tags including #abercrombiehaul drawing organic attention to its core ranges and styles.

Peel Hunt retail analyst John Stevenson says fundamentally it was the product that Abercrombie had to nail in order to become cool again.

“Things went horribly wrong and it’s been a long time coming when your product becomes stale. Especially with a brand that just had the logo across everyone’s chest, you’ve got to go back to having decent, fashionable products that people want and that’s not a quick reset.”

This is echoed by GlobalData managing director Neil Saunders who believes making the product the “hero” once again has absolutely been the secret to success for Abercrombie.

“As well as big things like the tone of marketing, Abercrombie has also changed small things with an emphasis on quality,” Saunders said.

“Things like better buttons, softer fabrics and little design embellishments all make its proposition more defensible in a crowded and competitive marketplace. They also represent added value, which gives people a reason to spend a bit more on the products rather than trade down to cheaper alternatives – of which there are many.”

Abercrombie chief product officer Corey Robinson said in an interview in Rivet earlier this year that the retailer’s new target customer is between the ages of 22 and 29, and versatility within the product range – including trends and heritage pieces – are what shoppers are now seeking from brands.

So, as the broad range of trendy denim, nice tops and cool sweatshirts continue to prove a hit with shoppers across a range of ages, Abercrombie is on track to remain at the top of the tree for the foreseeable future.

A new leader in a new era

Former Abercrombie chief executive Mike Jefferies, who has recently been embroiled in a sex-trafficking scandal, marred the brand’s reputation after saying that it was only suitable for “the good-looking, cool kids” and that a lot of people “don’t belong” in Abercrombie clothing. 

It was the job of his successor Fran Horowitz to change people’s perspectives. Horowitz joined as chief executive in February 2017, having previously been president of the Hollister brand.

In 2016, prior to her taking over as chief executive, Horowitz said the business was a “positive, inclusive brand, with a nice sensibility, very different from what they encountered in the past”, which proved to be something she delivered on in the years to come.

Saunders says a lot of the turnaround is attributable to Horowitz, and called the changes at Abercrombie a “complete transformation”.

“They have changed every aspect of the brand, including the culture. The result is a modern company that resonates with consumers and has performed spectacularly well.”

Having brightened up its stores, which were famously dark for decades, as well as veering away from its traditional marketing tactics under Horowitz’s leadership, Bloomfield says the brand has gained respect in a new era.

“The retailer’s marketing is also much more inclusive than its 90s heyday, using a range of models to better represent its brand and attract a wider audience.

“It is also investing in technology, harnessing the power of AI on several initiatives, such as personalised recommendations and demand forecasting. This is unlocking value both for the business and its customers and is something the retailer is likely to further invest in.”

Having jumped five spots in Retail Week’s most recent ranking of the UK’s biggest fashion retailers and where they’ll be in three years time, Abercrombie & Fitch is on track to continue gaining traction both at home and overseas.