Abercrombie&Fitch Financial Calculations

Abercrombie & Fitch is a casual apparel and accessories retail organization.

Producing a large variety of men, women and children’s clothing. Their collection

of merchandise includes: clothing, hats, belts, bags, jewelry, technology, colognes

and perfumes for both genders.

The brand’s inspiration is derived from the preppy, youthful, laidback, casual all

American lifestyle. Targeted towards young male and females ages ranging

between 14 and 20. Their retail prices are recognized as being the highest in the

youth-clothing industry. Abercrombie & Fitch also owns three other similar

brands: Hollister, Gilly Hicks and Abercrombie Kids.

The brand’s mission statement as displayed is: “We are committed to providing

comfortable and long lasting clothes that look good” (A&F Blog)

A&F’s main competitors include GAP, American Eagle Outfitters and Ross Stores.

The competition is extremely high in the fashion industry, consisting of a steady

trend, it is to be expected that this company “faces threats from both within and

outside the industry” (A&F Co.). A&F also benefits from possessing three

additional brands; due to this fact Abercrombie and Fitch dominates larger

portions of their market and offers more styles as well as products to the

industry. This insures that they remain on top of their competition and helps

keep their popularity high.

The company has stores in North America, Europe and Asia as well as an online

shop. The brand was established as a supplier of rugged, outdoor gear in 1892. In

1988 it was bought by The Limited Inc. Then was repositioned in 1992 to be a

more fashion-oriented casual apparel business as this was the new high selling

market. 

The company went public in September of ‘96 with the share price at $16 per

share. Abercrombie & Fitch issue a cash dividend at an annual rate of $0.70 per

share paid in quarterly payments of...