Abercrombie & Fitch is controlling its promotions, which are fewer than last year, and has recorded a double-digit increase in its average selling price (A.U.R.) since 2019. Customer buy-in and effective stock management are the main drivers of this growth. Each quarter, the company aims to keep A.U.R. stable, by adapting to consumer expectations.
The CEO stresses that investors expect the company to continue to deliver solid results. Abercrombie has spent years transforming its operating model and explaining these changes to investors, which is reflected in the share price increase. The company remains close to its customers, reacts quickly to market trends and maintains strict financial discipline.
In terms of partnerships, Abercrombie has expanded its product range through its collaboration with the NFL, which began three years ago. This initiative, which started small, now includes a variety of products such as outerwear and hats. Hollister has also launched a university collection, contributing to a strong back-to-school performance.
Abercrombie plans to open around 120 new experiences this year, twice as many as last year, with global expansion for both the Abercrombie and Hollister brands. Contrary to some reports, the company has not left Hong Kong and maintains several shops there, recording net growth of 3% and comparable growth of 21% in the APEC region this year.
The company is seeing strong demand for the autumn season, with solid sales of tops, bottoms and dresses, as well as a good performance from the bridal boutique and university products. Abercrombie remains focused on investing in its business, particularly in digital and technology, and continues to open and transform its shops.
Artificial intelligence (AI) plays a crucial role at Abercrombie, although it is nothing new to the company. A dedicated AI working group is exploring the opportunities offered by this technology. Data and analysis help to understand customer expectations, influencing the company's marketing and digital strategies.
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