Updated: 2025-08-29T18:29:12Z
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Abercrombie & Fitch, an American retailer with over a century of history, began as a purveyor of outdoor equipment in the late 19th century but has since undergone several radical transformations. Initially recognized for serving outdoor enthusiasts who pursued fishing, hunting, and camping, the brand gradually shifted its focus across decades until, by the late 1990s, it projected an image utterly detached from those roots. Its dark, fragrance-filled stores and overtly sexual branding — symbolized by shirtless male models and a deliberately narrow notion of beauty — created a retail identity that, while enormously desirable to a specific demographic, also excluded vast groups of potential shoppers.
By the early 2000s, Abercrombie became synonymous with adolescent aspiration, dominating American malls and shaping youth fashion. For many teens, wearing its logo signified membership in a coveted social class, while for others, the store represented an intimidating fortress of exclusion. The brand’s meteoric rise, however, was tempered by increasing backlash. Controversies mounted around racially insensitive products, discriminatory hiring practices, and exclusionary marketing that glamorized a very specific aesthetic. Lawsuits, including one resolved by the U.S. Supreme Court, undermined its credibility and eroded public goodwill. Notably, criticism intensified as cultural values evolved toward inclusivity, diversity, and affordability — qualities at odds with Abercrombie’s former elitist posture.
By the 2010s, sales had declined for years, and the company shuttered numerous locations. Attempts to maintain relevance faltered, exacerbated by the collapse of the traditional mall ecosystem and the ascent of fast-fashion competitors like Forever 21, Zara, and H&M. Nike emerged as the aspirational brand for youth, replacing Abercrombie’s once untouchable status. The cumulative effect left Abercrombie & Fitch teetering on irrelevance.
The turning point emerged with a decisive leadership change. After CEO Mike Jeffries — the architect of the brand’s exclusionary identity — stepped down in 2014, the company began to strategically dismantle its reliance on hypersexualized advertising and narrow beauty standards. Under Fran Horowitz, appointed CEO in 2017, Abercrombie underwent a substantial rebranding effort. Stores were redesigned with brighter lighting, clean aesthetics, and more welcoming layouts. Overt marketing tropes of shirtless greeters and overpowering scents were eliminated, while the merchandise mix shifted toward more refined, versatile pieces that could appeal to a broader age range. Importantly, sizing became more inclusive, prices were moderated to better match consumer expectations, and the company placed emphasis on digital accessibility.
The results of this transformation became evident. By 2018, Abercrombie had posted multiple consecutive quarters of same-store sales growth and achieved significant digital sales milestones, surpassing one billion dollars in annual online revenue for the first time. The collection evolved away from heavily logo-driven apparel toward modern, trend-conscious clothing resembling offerings from higher-end competitors such as Reformation, yet at more accessible prices. Furthermore, Abercrombie adjusted its real estate strategy, closing underperforming mall-based stores and opening boutique-style locations in neighborhoods identified through data-driven insights on e-commerce activity. This demonstrated not only a desire to remain present but also a notable sophistication in adapting to contemporary consumer behavior.
During the COVID-19 pandemic, while global fashion retailers faced historic uncertainty, Abercrombie managed to leverage digital channels and data analytics to strengthen customer loyalty. Digital sales soared in 2020 and 2021, even as supply chain delays and inflation posed challenges. By 2022, however, inflationary pressures began to affect both Abercrombie and its subsidiary Hollister, particularly among lower-income shoppers more sensitive to shifting prices. Nevertheless, the brand continued to innovate, capturing attention with new collections designed for Gen Z consumers entering early adulthood who sought transitional wardrobes suitable for both professional and social settings.
As of 2024, the rebrand had proven highly successful in restoring cultural relevance. Abercrombie stores no longer bore resemblance to their dimly lit predecessors. Instead, they were characterized by minimalist designs, neutral palettes, sophisticated displays, and welcoming atmospheres. Merchandise extended beyond denim, historically its strongest category, into formalwear, suit sets, dresses, and lifestyle-ready apparel intended for weddings, workplaces, and modern social events. The company openly positioned itself as a lifestyle brand rather than merely a jeans-and-T-shirt retailer. Financial results supported this evolution: consecutive quarters surpassed analyst expectations, with sales growth accelerating and investor confidence returning. Company shares nearly doubled through mid-2024, solidifying Abercrombie’s regained reputation as not just a survivor but an innovator in modern retail.
Yet, the resurgence has not been uninterrupted. By the second quarter of 2025, Abercrombie reported consecutive sales declines at its flagship brand, dropping 5% year over year, despite Hollister’s continued growth offsetting those losses for the parent company. Executives cited confidence in forthcoming product launches, partnerships — including cross-brand collaborations such as those with major sports leagues — and fashion alignments with trending styles like bohemian and Western aesthetics. At the same time, the challenge of navigating tariffs, particularly under the prevailing economic policies of the Trump administration, has added significant cost burdens. The company, which initially anticipated lower tariff-related expenses, revised estimates substantially upward to $90 million, underscoring a volatile external market environment that could threaten the stability of its comeback.
Despite the headwinds, Abercrombie’s leadership expressed optimism that strategic positioning and the critical back-to-school shopping season would confirm the durability of its turnaround. With its modernized branding, championing inclusivity and aspirational yet accessible design, Abercrombie & Fitch remains emblematic of how a company can resurrect itself from near collapse to contemporary relevance. Its trajectory represents not merely a commercial rebound but a cultural reinvention — a case study in the risks of failing to adapt and the rewards of bold, corrective transformation.
Sourse: https://www.businessinsider.com/abercrombie-and-fitch-rise-and-fall-lawsuits-controversy-comeback-2022-8
