Marvelous Story of Abercrombie

Papa?" "Nicole?

At the end of 19th century, a youngster named David Abercrombie established David t. Abercrombie company in New York City. It specialized in sales of articles that were used in high-quality outdoor activities and hunting. His clients are all some the rich man of hunting and adventuring, and one of them is from beginning to end and a successful lawyer. Ezra Fitch had been involved in lawsuit for a long time and later he found life was uninteresting then would rather buy more appealing shotgun. Finally in 1904, David Abercrombie managed to persuade him to join Abercrombie which he did not know how to refuse. Since then, the company’s name had changed from the difficult concept of Abercrombie to a name which was more difficult to read - Abercrombie & Fitch.

However, the union was just like marriage. Everything was fine before it but they argued about everything. Abercrombie's conservative attitudes often drove Fitch who wanted to expand aggressively crazy. At this point the A& F was a supplier for the wealthy class to provide sporting goods. At the beginning of the 21st century, Abercrombie couldn't bear any longer, selling his share in the company, and retreated from the management.

However, in order to allow the company's name look cool rap, Fitch decided to retain the previous "Abercrombie" part. Fitch could finally expand the company desirably. He broke away from the previous principle of having everything in cupboards neatly and cleanly. Thus, the clothes and socks in the store looked as if they had been used for times and the wigwams were also dirty. Besides, there was even a fire in a corner of the store. A&F still keeps such a style today. Because of its hunting background, the symbol of A&F is the moose. The fire is rising so well that the shop not only was not burned, but also opened a flagship store in New York's Fifth Avenue, which began to sell sports clothing for men and women. Fitch built himself a wooden room at the top floor of the concrete-building, and there was also a fishing pond for guests to try fishing rod. Many celebrities loved to use A&F's equipment and clothing. Roosevelt's African expedition, Robert Peary's Arctic visits, Hemingway's shotgun, Hoover and Eisenhower's fishing tackles were all from A&F. In that year, A& F became the world's largest sporting goods company.

In 1928, legendary Fitch earned enough and retired. After that the company climbed down, the great depression in 70s forced A&F to declare bankruptcy. In 1988, Limited Corporation bought A&F's marketing department for cheap products. In 1992, Limited Company's Chairman took a fancy to Jefferies’ outstanding gift on casual clothing design. Consequently, he recruited him and added a new vitality to the A & F’s brand. From then on, the A&f clothing burst into vigor. As far as Jefferies is concerned, what is demanded by customers is classical American apparel which is of high quality and reveals young minds as well.

The Logo in the front is emboidery and its absorption of perspiration is better, it is not only full of fashionable new ideas but also is very comfortble. Abercrombie & Fitch changed into a clothes company and achieved great success by the college students' shabby style.

Marvelous Story of Abercrombie & Fitch

At the end of 19th century, a young man named David Abercrombie founded David T. Abercrombie Company in New York, which specialized in high end outdoors and hunting products. All of his clients are rich people who are fund of hunting and adventures, and among them was Ezra Fitch who was a successful lawyer and was the most loyal client. After a long period of court career, Ezra Fitch got bored about that kind of life which was far less interesting than selling shotguns. Finally in 1904, he managed to persuade Abercrombie who did not know how to refuse him to let him join the company. then the name of the company became Abercrombie & Fitch which is more difficult ot read and longer from Abercrombie which is also difficult to read.

While the two's combination was like marriage, everything was fine before marriage but after marriage they quarreled about even nothing. The conservative attitude of Abercrombie always drove Fitch who wanted to expand rapidly crazy. At that time A&F had already been a sports products supplier for high class. At the beginning of the 21st century, Abercrombie couldn't bear any longer, selling his share in the company, and retreated from the management.

However, in order to make the company’s name look cool and difficult to pronounce, Fitch decided to retain the front part "Abercrombie". After that, Fitch finally expanded the company as he wished. He opposed the rule that everything must be neat and clean and be put in a cupboard, it seemed that the clothing and socks had been used for two or three times, tents were filthy and dirty, and there was a fire in the corner of the shop. Even now A & F still kept this style. Because of the background of hunting, the symbol of A & F was the head of an elk. Thanks to the fire, instead of burning down the store, A & F opened its flagship store at the Fifth Avenue in New York, and began to sell sporting clothes for males and females. Fitch had his home made from wood shield on roof the reinforcement concrete store. Fish pond is designed for customers to test fishing rods. Many celebrities liked with A & F's equipments and clothing. Roosevelt's African expedition, Robert Peary's Arctic expeditions, Hemingway's shotgun, Hoover and Eisenhower's fishing tools were all provided A & F. In that year, A & F became the world's largest sporting goods company.

In 1928, Fitch who operated the company legendarily earned enough money and retired. After that, the company began to decline. And in 1970s, the U.S. Great Depression prompted the A & F’s bankruptcy. 1988, Limited bought sales department of A&F cheap products. In 1992, chairman of Limited Corporation appreciated the outstanding design talent of Jefferies on casual cloth and consequently recruited him to inject fresh energy to A&F name. Since then, A & F clothing sparked its youthful vigor. As to Jefferies, what customers wanted was high quality classical America clothing which expressed youthful attitude.

The logo in writing is embroidery and is good at absorbing sweat. It is not only very fashionable but also improves comfort significantly. Ever since, Abercrombie & Fitch started to transform into a clothing company and met with a huge success by using the worn-out students clothing style.

Marvelous Development of Abercrombie

At the end of 19th century, a young man named David Abercrombie set up David t. Abercrombie & Co. in New York City, particularly selling upscale equipments for outdoor activities and hunting. His clients were some of the rich who liked hunting and adventures. One of the most loyal was Ezra Fitch who was also a successful lawyer. After long career in the law, Ezra Fitch found it boring and though it more fun to sell shotguns. In 1904, he finally succeeded in persuading the don't know how to refuse Abercrombie, let him to join our company, the company name from the more difficult to read and Abercrombie into long Abercrombie & Fitch.

However, the combination of the two person was like marriage in general-everything was good before the marriage and quarrel was more common after marriage. Abercrombie's conservative attitude often forced Fitch desired for rapid expansion to get annoyed. At this period, A&F was a supplier for the wealthy class to provide sporting goods. At the beginning of 20 century, Abercrombie finally could not take any more and he sold his share in the company and quit.

But in order to make company name Fitch looks very rap cool, decided to keep ahead ", "Abercrombie Fitch can finally contentment after the expansion of the company. He is a reverse all things are clean in ambry principle, the clothes look like socks with two or three times, tents and dirty, the corner of the store is a fire. A & F still maintains such kind of style until now. Also because of the hunting background, A & F is marked by an elk head. The fire was great not to burn down the store, but set up the flagship store in the fifth avenue in New York, in which men and women sports clothing are sold. Fitch built himself a wooden room at the top floor of the concrete-building, and there was also a fishing pond for guests to try fishing rod. Many celebrities love to use equipments and wear clothes of A & F. For example, Roosevelt's African expedition, Robert Peary's Arctic expeditions, Hemingway's shotgun, fishing tackles of Hoover and Eisenhower, are all from the A & F. In that year, A & F became the largest sporting goods company in the world.

In 1928, operating legendary Fitch earned enough to retire. Afterwards, the company began to decline and the U. S. Great Depression in 1970s led A&F to declare bankrupt. In 1988, Limited purchased A&F's sales department of cheap products. In 1992, president of Limited Corporation appreciated Jefferies' outstanding talent in the design of recreational clothes and thus recruited him into his company which injected new life to the brand of A&F. Since then, A&F began to rejuvenate vitality. In Jeffries’s opinion, consumers desire for the classic American Apparel of high quality, revealing the young mind.

The LOGO in the front is embroidered, and its sweat-absorbent nature is superior, which is not only full of fashionable new ideas, but also greatly improved the comfort and natural wearing feeling. Abercrombie & Fitch began to transform into clothing company and achieved great success duo to academic shabby costumes style.

Marvelous History of A&f

When I can no longer bear to think of the victims of broken homes, I begin to think of the victims of intact ones.

At the end of 19th century, a young man named David Abercrombie set up David t. Abercrombie & Co. in New York City, particularly selling upscale equipments for outdoor activities and hunting. Its clients were all rich people who loved hunting and adventuring among whom there was a lawyer Ezra Fitch who was also the most loyal one. Ezra Fitch felt boring after many years of lawsuit life, instead, he liked to enjoy the fun of selling hunting guns. At last, in 1904, he successfully persuaded Abercrombie who did not know how to decline to join the company. Since then, the name of the company was changed from Abercrombie which was difficult to spell to another lengthy Abercrombie & Fitch.

However, the combination of the two is like a marriage. Before the marriage they were being good to each other but after that they quarreled on almost any trivial things. The conservative attitude of Abercrombie often freaked out Fitch, which intended to have a rapid expansion. At that time A&F had already been a sports products supplier for high class. At the beginning of 20th century, Abercrombie at last could not bear it. He sold his shares in the company and left the company.

However in order the company's name sounded cool, Fitch decided to keep the Abercrombie, after that Fitch finally could expand the company as he wished. He destroyed the principle that everything should be placed in cupboard in tidy. He made the clothes and socks in the store look like used several times, and the tents were dirty, and he even burned a fire in the corner of his store. This style has been kept even now. Because of the background of hunting, A & F used the head of moose as their sign. That fire was good and it turned out that the store had not been burnt down but a flagship store where men’s and women’s sportswear was started to be sold was opened in Fifth Avenue in New York. Fitch built a squatter in the attic of a building of steal reinforcement and concrete as his own home. In the shop, there also was a fishing pond for guests to try the fishing rod. Lots of celebrities were fond of using tools and clothes of A&F such as for Roosevelt's adventure in Africa, Robert Peary's expedition in North Pole, Hemingway's shotgun, Hoover's and Eisenhower's fishing tackles. In that year, A&F became the largest sports goods company in the world.

In 1928, Fitch who operated the legend earned enough and retired. After that the company began to decline, and the U.S. Great Depression in 1970s made A & F declare bankrupt. In 1988, Limited bought sales department for cheap products in A&F. In 1992, The chairman of Limited company found the outstanding talents of Jefferies on the designs of casual clothing, so he took him into the company to add new vital force for the brand A&F. From then A&F began to bloom young energy. In Jefferies' eyes, the customers want classic American wearings in high quality and which can reveal young people's attitude.

The LOGO is positive words, absorbent embroidery, not only is full of fashionable dress of innovative, will feel comfortable and natural greatly increased. Abercrombie & Fitch has made the transition to be a clothing company and has made great success by college students’ worn clothing style.

Successful Story of Abercrombie & Fitch

Old friends and old wines are best.

At the end of the 19th century, a young man called David Abercrombie has created the David t. Abercrombie company in New York City, and the company sale the senior outdoors activity and hunting appliances. His customers are wealthy but in favor of hunting and adventures, the most faithful of whom is a successful lawyer whose name is Ezra Fitch. Having engaged in lawsuits over a very long career, Ezra Fitch felt life was boring and it had more fun selling hunting rifles. In 1904, he finally succeeded in persuading the don't know how to refuse Abercrombie, let him to join our company, the company name from the more difficult to read and Abercrombie into long Abercrombie & Fitch.

While their combination was just like marriage, that is, everything was fine before marriage, buy nothing was fine after marriage. Abercrombie's conservative attitude often drove Fitch who always wanted to expand the company quickly crazy. At that time, A & F was the supplier of sporting goods for the ranks of wealthy. At the beginning of 20 century, Abercrombie finally could not take any more and he sold his share in the company and quit.

However, Fitch decided to keep the former Abercrombie part in order to make the name of the company look like rap and cool, after that, Fitch could expand the company at his will at last. He is always against the principle that everything must be put neatly and cleanly in a cupboard. The clothing and socks in the shop seem to have been used for two or three times, while the tents are dirty and there is also a fire in the corner of the shop. A&F still keeps such a style today. Because of its hunting background, the symbol of A&F is the moose. The fire was great not to burn down the store, but set up the flagship store in the fifth avenue in New York, in which men and women sports clothing are sold. Fitch built wooden house as his own home on top of a armored concrete building, also there is fishing pond in the shop for guests to try fishing. Lots of famous people prefer A&F equipment and clothing. Roosevelt's African adventure, Robert Peary's Arctic research, Hemingway's hunting gun, Hoover and Eisenhower's fishing tools all came from A&F. In that years, it was the biggest sports equipment company in the world.

In 1928, operating legendary Fitch earned enough to retire. Afterwards, the company began to decline and the U. S. Great Depression in 1970s led A&F to declare bankrupt. In 1988, Limited purchased A&F's sales department of cheap products. In 1992, the superior talent of Jefferies in the casual clothing design was appreciated by Limited Company's Chairman, so he employed him to add a new vitality for A&F. Since then A&F began to beam. In Jefferies's opinion, what consumers want are classic American clothes with high quality and expressing young mental attitudes.

The Logo in the front is emboidery and its absorption of perspiration is better, it is not only full of fashionable new ideas but also is very comfortble. Abercrombie & Fitch has made the transition to be a clothing company and has made great success by college students’ worn clothing style.

Abercrombie & Fitch's fourth-quarter profit of a single charge

New Albany, Ohio - Abercrombie & Fitch Company's fiscal fourth-quarter profit fell, part of the cost of the Lhure closed shops, but adjusted results topped analyst estimates.

The clothing retailer said Tuesday its net income fell 31 percent to $47.5 million, or 53 cents per share, for the period ended Jan. 30. That compares with a profit of $68.4 million, or 78 cents per share, a year ago.

Taking out a charge related to the Ruehl store closings and other items, profit was 91 cents per share. That beat the 87 cents-per-share estimate of analysts surveyed by Thomson Reuters. These estimates typically exclude one-time items.

Abercrombie's board approved the shutdown of its 29 Ruehl stores and related direct-to-consumer operations in June. The brand's closure was completed in the fourth quarter.

Sales slipped 5 percent to $936 million from $980.8 million, short of Wall Street's $953.7 million.

Abercrombie, based in New Albany, Ohio, has struggled with falling sales for two years as consumers have cut back during the recession and headed to lower-priced competitors like American Eagle and Aeropostale to stretch their dollar further.

The company is feeling more pressure among its U.S. shoppers, as domestic sales fell 12 percent, but international sales surged 86 percent.

Abercrombie plans to expand overseas this year and concentrate on boosting profitability domestically, CEO and Chairman Mike Jeffries said in a statement.

Sales at stores open at least a year dropped 13 percent in the quarter. This figure is a key indicator of retailer performance since it measures growth at existing stores rather than newly opened ones.

Abercrombie reported declines across all brands for sales at stores open at least a year. At Hollister, the key sales figure slipped 19 percent, while abercrombie kids posted an 11 percent decline. For its namesake stores, the key sales figure fell 8 percent.

Abercrombie's full-year profit sagged to $254,000, or break-even, from $272.3 million, or $3.05 per share, in the prior year.

Annual sales slid 16 percent to $2.93 billion.

Abercrombie said it plans to open in Copenhagen, Denmark, and Fukuoka, Japan in 2010 fiscal year to another one of its namesake stores. The company also expects to open the epic Hollister stores and 30 shopping malls in New York-based international Hollister stores.

Beyonce sued Abercrombie & Fitch's name in the intense perfume

Pop diva Beyonce Knowles and youth clothing giant Abercrombie & Fitch's war on who is intense.

In a federal suit, the Ohio-based chain of popular mall stores sued Knowles, saying they already own the name of her upcoming scent.

Grammy Award-winning singer announced this week that she had been in conjunction with the perfume manufacturer Coty, was launched in 2002, when the craze for celebrity perfume, Jennifer Lopez 'light-emitting racked their brains in the sales of 100 million U.S. dollars.

Knowles’ perfume, named after her onstage alter ego, Sasha Fierce, is supposed to launch next spring. Her line of clothing, also called Sasha Fierce, just debuted in department stores.

The superstar singer described her new scent as “an alluring and sophisticated fragrance; one that’s refelective of my inner power.”

Abercrombie said the whole thing stinks.

Within hours of Tuesday’s announcement, Abercrombie filed suit in federal court in Columbus, asking a judge to stop Knowles and accusing her of trademark infringement, unfair competition and deceptive trade practices because it already sells a men’s cologne called Fierce.

The $40 cologne comes in a bottle featuring the standard Abercrombie and Fitch branding: a ripped male torso. Store employees spritz stacks of clothing with it.

The company said it has sold $190 million worth of Fierce since 2002 and Knowles’ perfume plan “poses a likelihood of confusion” for consumers and could cost them sales.

Abercrombie said its attorneys sent Knowles a cease-and-desist letter but she had not backed off.

Knowles 2008 album "I am ... Sasha fierce" platinum sales, has launched a called Dereon, including earrings, pendants spelling out the word fierce clothing line.

Abercrombie & Fitch 's style with some customers feeling gradually disappeared

Abercrombie & Fitch, a one-time retail sales and fashion stars young people have shown signs of a remedy, its grip on the question of style in youth.

The New Albany, Ohio, company, seller of $40 T-shirts and $90 jeans, was among the worst performers during the holiday season, even with uncharacteristically high levels of discounting. The retailer posted a 19% decline in December sales at stores open at least a year, with its lowest-priced brand, Hollister, down 25% in December from a year earlier.

Retail analysts said Abercrombie's troubles go beyond pricing to its once unerring sense of style, a problem that could be trickier to fix. The logo T-shirt and torn jeans ensemble that Abercrombie made the unofficial school uniform a decade ago has played out, said Kimberly Greenberger, a retail analyst with Citigroup Inc. who tours malls every two weeks to assess trends. That misstep has created an opening for lower-priced competitors such as Aeropostale Inc. and American Eagle Outfitters Inc., which reported December sales gains of 10% and 7%, respectively.

"The look is stale," Ms. Greenberger said. "They need to figure out what the next hot trend is and push that, because that's the only way out of this downward spiral."

In a sign the company is taking the challenge seriously, Chief Executive Mike Jeffries has taken charge of selecting the chain's female clothing. Chad Kessler, the executive vice-president who had held the job, left that position in January and will depart the company by July 31. A spokesman declined to make Mr. Kessler available to comment.

Abercrombie is making a renewed push on fashion this year, the spokesman said. For instance, after missing demand for teen dresses last year, its Hollister chain has more than a dozen dress styles for spring.

Of course, all teen retailers are confronting high youth unemployment and tight-fisted parents. But Abercrombie's competitors have been finding teens willing to spend for the right trends.

Aeropostale and mid-priced rival American Eagle Outfitters are exploiting Abercrombie's absence from high-demand styles. New York-based Aeropostale is adding more fashion-forward looks to its shelves in addition to its inexpensive basics. "We are no longer a fashion follower," said Tom Johnson, Aeropostale's chief operating officer, at a retail-industry conference last month.

American Eagle, of Pittsburgh, Pa., is bringing in new merchandise every four weeks, up from every six weeks. "Increased variety and choices…will be critical and crucial as part of regaining market share," Chief Executive Jim O'Donnell said at the same conference.

Both retailers are also seeing success with accessories, especially with jewelry at American Eagle, which tends to be a high-margin category—something Abercrombie only mildly promotes.

Abercrombie succeeded for years by selling at prices sometimes twice its competitors' and refusing to discount. When the recession made that approach untenable, the chain was slow to react. It has since experimented with lowering some of its prices. Abercrombie's average unit retail price was down 14% during the holiday season, according to Christine Chen, a retail analyst with brokers Needham & Co.

But even with lower prices and more promotions, including a gift card giveaway, Abercrombie posted steep sales declines during the holidays. "Product has been a big source of Abercrombie's issue," said Ms. Chen. "They need to continue to work on the fashion."

January sales numbers roll out Thursday, and retailers are expected to post sales gains. Stores typically spend January clearing out inventory to make way from spring, and shoppers were drawn to discounts unavailable during the holiday season. Analysts polled by Thomson Reuters think sales at stores open at least a year rose 2.5% for the companies that report. Aeropostale and American Eagle are expected to show increases of 6.2% and 5.7%, respectively. Abercrombie, however, is expected to post a decline of 8.3%.

If Abercrombie's styles aren't commanding much attention from U.S. consumers, the opposite is true with shoppers overseas. Late last year, the company opened Abercrombie megastores in Milan and Tokyo, both of which have performed well, as have Hollister mall-based stores in the U.K. The robust sales come in spite of retail prices that are nearly double that of the domestic merchandise.

To maintain its international reputation, Abercrombie withheld the holiday promotional activity—including discounts and gift card giveaways—from its large domestic stores in urban locations such as New York's Fifth Avenue. Those stores are popular with international tourists and are likewise packed.

Currently, international sales account for about 10% of the company's total revenues. That share could grow to more than 20% in 2010, said Paul Lejuez, an analyst with Credit Suisse. Mr. Lejuez estimates international sales will be $313 million for fiscal 2009 and projects that figure to more than double in fiscal 2010.

But the excitement about international potential has been tempered by the most recent economic downturn.

"This is the humility to a certain extent, they are," said Credit Suisse's Mr. Lejuez. "They realize that they can not just do what they always do."

My Abercrombie & Fitch problem with CAIR's approach

The San Francisco Bay Area chapter of the Council on American Islamic Relations (CAIR-SFBA) has filed an Equal Employment Opportunity Commission (EEOC) complaint against Abercrombie & Fitch on behalf of Hani Khan, who was fired for not removing her headscarf.

A similar complaint was filed against A&F by CAIR's Oklahoma chapter in 2008 on behalf of Samantha Elauf, who was not hired because of her headscarf.

Although CAIR is legally in the right, as far as I can tell, I intend to show that they are ethically in the wrong, and while they may win a victory for Hani, the inevitable result is that this action will harm our community. If Muslims in America wish to be a light of truth and virtue in this society we need to hold ourselves to a higher moral creed, not utilize an unethical system to coerce our neighbors.

I'll start by praising both of these women for sticking to their principles. I deeply respect and admire the integrity of women (and men) who adhere to their values in the face of oppositional pressure. I wish that their strength of character was the central theme of this story. I'd also like to ask them both if they hold the principle, as I do, that violence is not the way to solve our problems.

Let me explain what I'm talking about.

This complaint was filed with the EEOC because, as a federal agency, they are empowered to file a discrimination suit against A&F for wrongful termination. If Hani wins this discrimination suit the court will likely order A&F to rehire her, pay her lost wages, or in some other way retaliate against the company. Here's the question. Why would A&F comply with this order? What would happen if they refused? The unspoken fact is that if they don't, the government will make them comply, by force if necessary. The gun won't come out right away. They may levy fines, or revoke licenses, but if they refuse to pay those fines, if they continue to do business without a license, the last tool at the government's disposal is always violence. Wining a discrimination suit does not change hearts and minds. They comply because that subtle threat of violence permeates the entire transaction. So, I hope that these women ask themselves, as unjust and unethical as A&F's "look policy" seems to us, does threatening them with retaliatory violence, even through a proxy, conform with your principles? And I hope that the people at CAIR will ask themselves, is utilizing a coercive legal system to enforce your will on others the best way to, "encourage dialogue," or "build coalitions that promote justice and mutual understanding," as your mission statement says?

The fact is that using coercion against our neighbors is not only bad for our neighbors, it is bad for us. Most Muslims who are at all politically minded are familiar with the concept of "Blowback." US intervention in the a foreign country generates animosity toward America which explodes in unexpected ways. The same principle applies here on a smaller scale. Legal intervention in someone else's business model generates animosity toward Muslims which explodes in unexpected ways. Already, CAIR has announced they have received email threats from angry Americans.

Consider this. A&F has a history of legal issues surrounding their employment practices. In 2004 they were accused of discrimination against ethnic minorities for offering preferential treatment to whites, resulting in a class action law suit and a $45 million out-of-court settlement. Have they learned? In June 2009 they were accused of disability discrimination for hiding a one armed girl in the stock room and not allowing her on the sales floor, resulting in an employment tribunal and £8,013 compensation. In September 2009 they were accused of discriminating against the Muslim headscarf the first time, and now again. Why haven't they learned? Why is this "look policy" so important to them?

Is it just bigotry? Is it just a simple cost benefit analysis? I suppose there's no way to know for sure, but I'll tell you what I think. I think A&F chairman and CEO Michael Jeffries is a rich old eccentric who has spent the last 17 years using A&F to live out his own sexual fantasies, which incidentally involve white women, not brown women. He calls all his sales people "models" and has casting calls to put actual employees in their sexually explicit commercials. He says he thinks of A&F like a movie set, an emotional experience he wants to "sizzle with sex." I think Michael Jeffries understands better than anyone that a symbol of modesty doesn't belong in one of these soft-core bordellos. In his own words:

"We try to stay authentic and relevant to our target customer. I really don't care what anyone other than our target customer thinks."

A&F hasn't learned because you can never, ever create virtue with coercion. It's just not possible. And everyone, every Muslim, every American, every human needs to wake up to this fact. We have to find a mutually respectful way of resolving our disagreements.

So what can be done?

Interestingly, the ethical response to unethical business practices is already taking place, and that is market activism. In addition to the complaint CAIR put out an Action Alert requesting people contact A&F to express their concerns. News coverage is interviewing customers who express their outrage toward the company's discriminatory practices and threaten not to shop there anymore. People try to conflate these things together but the difference is that market activism is voluntary and rights respecting, while legal activism is coercive.

Consider this. A&F also has a history of market based controversy surrounding their more offensive merchandise and advertising. In 2002 A&F sold a shirt featuring a cartoon of Chinese immigrants and the slogan, "Wong Brother Laundry Service-Two Wongs Can Make it White." A boycott was organized by an Asian American student group at Stanford University and the company responded by discontinuing the shirt and apologizing. In 2003 their catalog contained nude photography, sexually explicit articles and recipes for alcoholic drinks, which were available to minors. There was an unprecedented wave of strong protest and organized boycotts over the publication, which was removed from stores and discontinued. In 2005 they sold a ladies shirt with the slogan, "Who needs brains when you have these?", and "I had a nightmare I was a brunette." The Women and Girls Foundation of Southwest Pennsylvania organized a "girlcott" and the company pulled the shirts.

Why does market activism work? He said it himself, "I really don't care what anyone other than our target customer thinks." But, also because market activism actually reflects real public opinion. If you want to influence A&F's "look policy" you need to put down the gun and pick up the megaphone.

Here's what I suggest. Imagine if Hani Khan went public and said she was withdrawing her EEOC complaint on ethical grounds and that she didn't believe violence was the way to solver her problems. Immediately the strength of her character would take center stage. Can you imagine the unprecedented publicity and public support that would be generated by such a statement? Then, imagine if she admitted what we all know, that she was not fired because of her religion. She was fired because of her principled refusal to be made a sex object. And imagine if she used the attention to call for a boycott until the exploitative "look policy" was abolished. Imagine if CAIR contacted all the Christian organizations, women's rights activists and Asian American groups that A&F has crossed in the past to actually, "build a coalition to promote justice and mutual understanding." Reports out this month say that A&F's profits were down 31% last quarter from the recession. Now is not the time they want to be dealing with bad publicity. It might be more work, but at least this way we could maintain the moral high ground.

Abercrombie & Fitch Posts Lower Sales in Q4

A&F (ANF), whose mall colleagues include American Eagle Outfitters (AEO) and Gap (GPS), closed over 4% higher on Tuesday on active volume. The market liked the fourth quarter numbers. I did not.

Let's see. Total sales were down 5%. Same-store sales skidded 13%. Total company domestic sales contracted 12%. And net income came in at 91 cents per share, adjusted. This compared unfavorably to the $1.06 per share made in the year-ago period.

Do you understand why I might be a little hesitant about the data? Of course, we have to stop and consider what drove the buying to initiate a head-nodding wave of comprehension through our system: the retailer beat the analysts' expectations. According to Reuters, the earnings per share estimate was for four pennies less.

Okay. We get it. Does that mean we too have to buy the story?

Well, management was able to cool it with the discounting. That's something the chain should expand upon. (For that matter, the whole industry needs to move away from programming shoppers to respond only to sales, but that's an entirely different discussion, and it's unlikely to be rooted in reality, if you know what I mean). Unfortunately, the gross profit margin could have used some assistance.

Shares of A&F have held up well so far this year, but I just don't consider now the time to buy the stock. I've been wrong on the company before, I should note. So, yes, there could be a trade here, but I don't like the potential for risk with the situation. Furthermore, my colleague Louis Navellier put the business on his list of ten stocks not worthy of Valentine's Day love. I tend to agree.

Abercrombie & Fitch Co. F4Q09 (Qtr End 01/30/10) Earnings Call Transcript

Abercrombie and Fitch Co. (ANF)

F4Q09 Earnings Call

February 16, 2010 8:30 am ET

Executives

Eric Cerny – Manager of Investor Relations

Jonathan Ramsden - Chief Financial Officer

Mike Jeffries – Chairman and Chief Executive Officer

Brian Logan – Principal Accounting Officer

Analysts

Barbara Wycoff – Jesup & Lamont

Jeff Klinefelter - Piper Jaffray

Christine Chen - Needham & Company

Jeff Black – Barclays Capital

Michele Tan – Goldman Sachs

Liz Dunn - Thomas Weisel

Taposh Bari – Jefferies

Paul Lejeuz - Credit Suisse

Janet Kloppenburg - JJK Research

Robert Samuels – Oppenheimer

Dorothy Lakner – Caris & Company

Roxanne Meyer – UBS

Adrienne Tennant - Friedman, Billings, Ramsey

Stacy Peck - SP Research

Lorraine Hutchison – Bank of America-Merrill Lynch

Howard Tubin – RBC

Edward Yruma – Key Banc

Dana Telsey - Telsey Advisory Group

Jennifer Black - Jennifer Black & Associates

Laura Champine – Cowen and Company

Presentation

Operator

(Operator Instructions) Welcome to this Abercrombie & Fitch Fourth Quarter Earnings Results Conference Call. At this time I would like to turn the conference over to Mr. Eric Cerny.

Eric Cerny

Welcome to our Fourth Quarter Earnings Call. Earlier this morning we released our fourth quarter sales and earnings, balance sheet, income statement and an updated financial history. Please feel free to reference these materials available on our website. This call is being recorded and the replay may be accessed through the internet at abercrombie4sale.com under the investor relations section.

Before we begin I remind you that any forward looking statements we may make today are subject to the safe harbor statement found in our SEC filings. Today’s earnings call will be limited to one hour. We will begin the call with a few brief remarks from Mike, followed by a review of the financial performance for the quarter from Jonathan Ramsden and Brian Logan. After our prepared comments we will be available to take your questions for as long as time permits. Please limit yourself to one question so that we can speak with any many callers as possible.

As stated in our earnings release today, our fourth quarter and annual results for the current and prior periods now reflect the reclassification of RUEHL into discontinued operations. The guidance we gave on our third quarter earnings call was prior to reflecting discontinued operations accounting for RUEHL and where significant we have indicated the affects of this in our commentary on the quarter.

We’ve been through a difficult year but we firmly believe it was a year in which we laid the foundations for future success. As we look back to a year ago, when we spoke to you regarding our objectives for 2009, we laid out what we were committed to protecting the brands, improving our product assortment, and not sacrificing quality. We said we would preserve cash, seek expense saving opportunities and efficiencies in the business, and continue to invest in our international expansion. All of which we believe we have done in a very difficult environment.

We continue to be very encouraged by our international roll out and Jonathan will provide more color on our 2010 plans in a moment. Today I feel more positive about our domestic business than I have for a long time. Why? First, because I feel good about our male business and I think we are on the right track with the female business. Our male business has a clear identity, is performing well, and has outpaced the women’s business over the last few years.

The female business is making progress; we are moving in the right direction for spring and will continue into summer and back to school. I encourage you to go to the stores and look at the assortment. You will see a healthy balance of basic and fashion product, exciting and improved fashion styles, along with increased variety. Personally I’m more involved in the women’s product and I am approaching this challenge with renewed energy and enthusiasm for improving this side of the business.

In addition, while we have never and do not ever plan to be a promotionally led business, we are getting better at figuring out something that was completely alien to us 18 months ago. We believe that AURs will need to continue to go lower in the spring but we also know that how we deliver that lower AUR is very important, both in terms of its effectiveness and in terms of protecting the brands. This must be done without sacrificing quality.

We have some exciting social media and marketing initiatives in the pipeline that I believe will help our business. We are actively seeking new ways to effectively engage our customers through these medium. Having recently launched on Facebook, abercrombieandfitch has already 775,000 fans, Hollister over 340,000. We recently released an iPhone application and continue to invest in our mobile commerce platform. For the future, we are investing in some new initiatives that we believe will provide a significant boost for our direct to consumer business and beyond.

Abercrombie & Fitch at Emerald Square Mall

After leaving the Hollister Co. at Emerald Square Mall we saw Abercrombie & Fitch directly across from it. I love Abercrombie’s Chase cologne and went into this store to purchase some. I was very pleased to find this Abercrombie & Fitch store wheelchair friendly and accessible. Abercrombie & Fitch owns Hollister Co and should make their Hollister Co. stores fully accessible too.

The entrance is easy to access for it is wide open with no barriers; the aisles are wide and I found I could easily access all the clothing for sale; I could easily reach the clothes hanging on racks or set on accessible display tables; the cologne was easy to reach as well. There were a few links of london clothing racks with sales items hanging on them that blocked access in a few areas; yet a very kind salesperson moved them quickly and easily for they were on wheels.

I found the lighting is good and easy to see. The dressing rooms are larger and wheelchair accessible; the door handles are lever handles which are easy to open; and there are safety grab bars on the wall as required.

The cashier counter is of a perfect wheelchair accessible height. The only problem I noticed is the ATM/Debit/Credit Card/ Transaction Machine is set too high on this counter and impossible for a customer in a wheelchair to reach. The sales girl was very kind, courteous, respectful and helpful.

I give Abercrombie & Fitch at Emerald Square Mall FOUR STARS for wheelchair accessibility. In order to earn the Fifth Star they would simply need to lower the ATM/Debit/Credit Card/ Transaction Machine to an accessible height on the cashier counter. I also suggest that all clothing racks with sales items are kept out of the aisles so that they don’t block wheelchair access.