Rise, Fall, and Rebirth of Abercrombie & Fitch: Confronting Racism and Reshaping Reputation

In the second half of 2023, American clothing company Abercrombie & Fitch’s stock price has nearly tripled, regaining its former glory. Once a trendsetter in the fashion industry, Abercrombie had been considered old-fashioned after a series of marketing failures. However, it has made a dazzling comeback with a retro wave and new branding.

According to Bloomberg, Abercrombie & Fitch’s stock price at the end of last year was $90.01, nearly quadrupling from its opening price of $23.6 at the beginning of the year, becoming a new star in the stock market.

This marks the most significant annual increase since the company’s public debut in 1996, and it stands as the best performance among U.S. S&P 1500 stocks, astonishing industry insiders. During the same timeframe, it surpassed the impressive 240% gain of Nvidia, a top tech company benefiting from the AI boom, setting a new record in company history.

Among its brands, Abercrombie’s net sales increased by 30% compared to the previous year, and Hollister also saw an increase in sales of around 11% compared with the year earlier.

In the past, Abercrombie opened stores in the fashion centers of various countries and used muscular white models in promotional events, which led to controversy over racially insensitive content posted on social media.

Former Abercrombie&Fitch CEO Mike Jeffries fueled appearance-based discrimination with remarks like, “We don’t want fat people to buy our clothes. We want only beautiful and cool customers.” This led to customer backlash, plummeting sales, and the company’s withdrawal from several countries, including South Korea, leading to its downfall.

Abercrombie, which seemed to have disappeared, has recently begun strategic marketing targeting millennials and Gen Z shoppers returning to work and school after the COVID-19 pandemic.

The current CEO, Fran Horowitz, explained, “We are no longer a brand that sells just jeans and simple t-shirts. We are expanding into numerous categories to create clothes our customers can wear from work to vacation.”

Kristina Ruggeri of Argus Research predicts, “Abercrombie, an established company with stable shipping costs and supply chains, is expected to achieve higher sales and increased profits.”