Abercrombie & Fitch is closing 60 stores this year

caption
Abercrombie (left) and its sister brand Hollister (right).
source
Facebook/Abercrombie and Hollister

  • Abercrombie
    & Fitch
    reported strong sales growth in the fourth
    quarter of 2017.
  • This growth was driven by greater investment in stores,
    marketing, and omnichannel experiences.
  • The company confirmed it would be closing up to 60 of
    its Abercrombie & Fitch and Hollister stores in
    2018.

Abercrombie
& Fitch
is bouncing back by cutting stores.

The teen retailer has
struggled
in recent years. In 2016, the
company’s
operating income plummeted
to $15.2 million – down from
$72.8 million in 2015 – and closed 54 stores.

On Wednesday, the company was praised by analysts after it
announced positive same-store sales growth in its fourth-quarter
results. Same-store sales were up 9% overall at the company,
boosted by 11% growth at Hollister and 5% at the Abercrombie
brand itself.

However, the company also announced it would be closing up to 60
Abercrombie and Hollister stores in 2o18.

The company has made a significant investment in its stores
over the past year. In 2017, it created seven new
Abercrombie prototype stores, downsized 16 of its stores, and
closed 39.

On a call with investors on Wednesday morning, CFO Joanne
Crevoiserat said that growth in the quarter was driven by strong
direct-to-consumer sales and better traffic in stores.

"The physical store still serves an important role for a customer
journey from a brand experience," Crevoiserat said.

The company has closed more than 400 stores since 2010, and 60%
of its leases are expiring over the next two years,
Crevoiserat said.

The company has not yet confirmed which stores would be closing.

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