After that Netflix doc, can Abercrombie & Fitch shed the past and transform its brand?
Abercrombie & Fitch has had an interesting brand history. Known for its masculine marketing, exclusive preppy fashion and dimly lit stores, Abercrombie was at the center of the spirit of the 00's era. But after a series of scandals and changing consumer behavior, people have lost some of their love for the brand.
Last week (May 24, 2022) the company lost almost a third of its market value after the annual sales forecast was greatly reduced and reported quarterly losses of $ 14.8 million. Like some other traders, the brand blamed inflation and currency exchange for its financial problems. But this dismal performance comes after a scathing Netflix documentary that delved into questionable brand practices, including stories of disabled employees being moved out of sight, and a recruitment manual that said dreadlocks were unacceptable and sales of anti-Asian printed T-shirts .
The challenge Abercrombie faces is more than financial - it is existential.
According to YouGov data, the Abercrombies brand's health 'is down 5.1 points from a six-month high of +8.4 in January, and the brand tracks 4.4 points lower than the average for high-street fashion.