A former retail pariah, and then mall royalty, Abercrombie & Fitch’s roller-coaster ride is one of reinvention. Its bare-chested models and elite image swept up teens in the early 2000s.
But behind the glamour, its culture was criticized as racist, sizeist, and elitist, and its sales and reputation began to tank. In 2017, Fran Horowitz became CEO and proceeded to rewrite the brand’s reputation.
With diverse marketing, larger products, and a digital reformation, Abercrombie emerged as a brand responsive to today’s values. This is the tale of how a once-dismissed retailer took part in one of fashion’s finest comeback stories within the history of fashion.
From Elite Outfitter to Mall Mainstay
Started in 1892 as an outfitter for affluent outdoorsmen, Abercrombie & Fitch gradually shifted its identity.
In the late 1990s, under CEO Mike Jeffries, it became the epitome of teen fashion, with sexy advertisements and a limited definition of beauty.
The company’s focus on exclusivity and hiring based on looks were questioned, leading to a string of lawsuits and a blemished reputation. Sales declined, and the once-iconic department store struggled to stay relevant in a changing cultural context.
Leadership Change Sparks Transformation
In 2017, Fran Horowitz assumed the role of CEO, and a new chapter for Abercrombie opened. Recognizing a need for change, Horowitz focused on diversity and more customer-friendly practices.
The product line was expanded to reach more people, additional sizes were added, and advertising strategies were redesigned to promote diversity and authenticity.
The moves were in an effort to rid the brand of its exclusivity image and appeal to a generation that believes in representation and social awareness.
Digital Overhaul and Store Revamps
Embracing the shift to e-commerce, Abercrombie spent heavily on its digital platforms, improving user experience and increasing e-commerce functionality.
At the same time, physical stores were radically redesigned, from dark, club-like environments to lighter, more inviting spaces.
The emphasis moved away from selling a lifestyle to selling quality products in a welcoming space in line with contemporary consumer demands.
Financial Turnaround and Market Performance
The strategic actions paid off. During the fiscal year 2024, Abercrombie recorded a 16% revenue growth to $4.95 billion.
Operating margins also grew, and the company authorized a $1.3 billion share-repurchase program, a sign of faith in long-term growth.
Forecasts for 2025, however, indicate lower sales growth of 3% to 5%, with wider economic issues and cautious consumer spending.
Embracing Inclusivity and Diversity
One of Abercrombie’s drivers of revitalization has been its focus on diversity. The company increased the size range of its clothing and included diverse-looking models in marketing, shifting away from earlier narrow definitions of beauty.
This shift countered earlier criticism and aligned the brand with social movements on representation and equity, mending fences between the brand and consumers.
Navigating Economic Headwinds
Abercrombie stumbled despite the positive trend. Economic downturns such as inflation and trade tariffs have affected consumer spending patterns.
In January 2025, the company reduced its sales growth projection to 3% to 5%, lower than analyst estimates.
The announcement causing a 16% drop in stock price, reflecting the volatility of the retail landscape and the need for flexibility in planning.
The Power of Authentic Branding
Abercrombie’s makeover says a lot about the importance of genuine branding. By aligning its values with those of the target customer segment, the company regained its brand identity and customers.
Authentic representation, quality, and consumer engagement have established a distinctive platform for Abercrombie in the retail industry, and showing how real transformation can drive business success.
Lessons for the Retail Industry
Abercrombie’s experience provides some lessons for retailers. Inclusivity, investing in change, and sensitivity to customer values are essential when it comes to remaining relevant and expanding.
The ability of the company to reflect on itself, make strategic adjustments, and quickly respond to market changes is a best practice for any business looking to rebuild its reputation and operations.
Looking Ahead
As Abercrombie moves forward, remaining committed to its values of inclusivity and innovation will be key.
The transformation of the brand from a symbol of exclusivity to one of representation reflects the broader cultural shifts in motion.
While challenges persist, Abercrombie’s story is one of reinvention in retail, a potential blueprint that offers hope and guidance for others seeking to weather change and navigate the demands of today’s consumer.
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