I do see the issue of Abercrombie not stocking XL and XXL sizes in women’s clothing as somewhat troublesome. This implies the company does not want “overweight” women wearing its brand.
However, it can be difficult to find a niche for differentiation in the apparel industry, and this is what Abercrombie & Fitch Co. (NYSE:ANF) is trying to do. In the aforementioned 2006 interview with CEO Jeffries, he noted that companies get into trouble by trying to target everybody, including young, old, fat and skinny, saying that you then “become totally vanilla…you don’t alienate anybody, but you don’t excite anybody, either.”
Abercrombie & Fitch Co. (NYSE:ANF) hopes to drive future growth via new brands and store expansion. This includes the pursuit of international growth opportunities in Canada, the U.K., Europe and Asia; expecting to open five flagship, four Gilly Hicks, and 31 Hollister stores in fiscal 2013.
Guess?, Inc. (NYSE:GES) is a specialty retailer of casual apparel, accessories and footwear for young men and women between the ages of 15 and 25. The company was up as much as 8% in a day last week after reporting May-ended quarterly results that showed EPS of $0.14, down from $0.30 in the first quarter last year. However, the $0.14 managed to top analyst expectations of $0.08.
The Buckle, Inc. (NYSE:BKE) is another contemporary apparel company, with a market leading position in premium denim. However, an expansion into activewear and footwear should help the company capture more share.