Abercrombie's Comeback Story Isn't As Great As It Seems
The official story from this year is that Abercrombie has been to hell and back.
Since 2007, the teen retailer has faced a series of problems. The international expansion was failing, designs were too preppy and CEO Mike Jeffries was accused of being a micromanager.
There were also lawsuits that took up resources and hurt people's perception of the brand.
Then, out of nowhere, Abercrombie shocked Wall Street by announcing amazing results. Shares soared on the news. Everyone lauded Jeffries for managing expenses and putting Abercrombie on the right path.
But Samantha Panella Houser at MarketWatch cautions that the retailer's big comeback isn't what it seems.
The biggest indicator that Abercrombie is in trouble can be seen through its international expansion, Houser said. She wrote:
International revenue grew 37% in the third quarter of 2012. Although this may appear strong, I would make the case that this is not very robust given that the company had 68% more stores open in the international market year-over-year and its square footage was up 82%. Why did its revenue growth trail that of its store growth? Because same-store sales were down 18% internationally.
Same-store sales reflect revenue growth over the past 12 months and are the
Abercrombie's international expansion has been lauded in the past, but the fact that sales are down is troubling for the company's
That means the retailer could actually be far from a comeback.
DON'T MISS: How Victoria's Secret Became The Top Apparel Brand >
- Class 10, 12 supplementary exams to be conducted from July 15: CBSE
- Top tourist places to visit in Mukteshwar in 2024
- Zomato posts Q4 consolidated net profit at ₹175 crore
- 10 breathtaking road trips for family summer vacation in India
- CBSE Class 10 board exam results declared
- Nothing Phone (2a) blue edition launched
- JNK India IPO allotment date
- JioCinema New Plans
- Realme Narzo 70 Launched
- Apple Let Loose event
- Elon Musk Apology
- RIL cash flows
- Charlie Munger
- Feedbank IPO allotment
- Tata IPO allotment
- Most generous retirement plans
- Broadcom lays off
- Cibil Score vs Cibil Report
- Birla and Bajaj in top Richest
- Nestle Sept 2023 report
- India Equity Market