Janet L.

Rovenpor; Professor
t\.1anhattall Colliege

On November io, z005, Abercrombie & FItch (A&F) eelebn'ltoo the opening of a new 36,OOO-sqnar{:·foot fourle\rel flagship store em Fifth Avenue and 56th Street in Manhattan. The timing was perfect=righr ahead of the busy Christmas shopping season during which the retailer hoped to sen large quantities ofcashmere sweaters,

exciting store fonnat that drew shoppers in and ca:ptiva~e-d

them. The loud music, appealing visuals, and perfumed interiors e.n.courageJ: te~nage:rS~(I"hang Qllt~ ;CllJ;d' "browse" A&F had cornea long way from its early beginnings Lrt.l8:92. Back then, A&f was considered a luxury sporting goods
retailer WIth conservative tastes that appealed to affluent elients, including adventurers hunters presidents. and heads

Henley long-sleeved fleeces, hand-knit wool sweaters, polo shirts, and jeans, The Fifth Avenue store, considered a prototype fur other flagship stores, f:eafu.red dark interiDrs, oak columns, bronze fixtures, and at central staircase with frosted glass-block flooriog .. A mural of muscular, Skin-sJ.lOw:ing rope climbers iln a se"ting. from tile 19308 by the artist Mark Beard was prominently displayed. "We're really excited. to be back on fifth Avenue. Wf!re really trying to build the character of the brand, We had a little store in Trump Tower (hat dosed in 1986, and we have been looking on Fifth Avenue for OJ; few years. 'Ibis
is a prestige location and great forthe positioning of the

of royu.lf:a.milies. President Theodore Roosevelt, for exampie, purchased snake-proof sleeping bags for a 1908 Afncan safari at an Abercrombie store, Admiral Richard ]3"yrd bOLtghleqUtpm,e:nt for b~$1950 expedmon to Antarctica.
A&F's competitlve strategies seemed to be working, By Febl'u<Iirf2007, the retailer operated 944 stores in 49 states, the District of Columbia and Canada. It had 3,500 full-time and 77,900 part-time employees (including tern-

pOTary staff hired during peak periods sumas the backto-school and holiday seasons) ,. Its flscal 2006 revenues were $3.32 billion and its net income was $422.2 million. It opened its firs[ European store, in London, in March 20()7, II expects to open a s-tore in Tokyo in late 2009. Apparel Magazine ranked A&F numberthree in terms of

brand;' commented CEO Michael Jeffries" L In an attempt to gIllige customer reaction til the opening of the new store, New r~rk Magazitle surveyed 75 teenagers asking them what the A&F brand meant to them. Answers were varied:~lrs gross:' ''Ies overpriced" "Its styl~ ish and sleek:' "It's very logotlstlcal" ~Itproj ects the typical image of the perfect American male-good. at school. and masculine:' "It was cool IIp until we were 16_"Then it got this dumb- jock -meathead image'" Perhaps such conrradictory statements were just what A&ll's senior executives minted. Consumers either loved or hated the ,rornp:any, itsproducts, and tis image. Part of the trendy retailer's competitive strategy, in fdlCt, was 10 stir lip controversy go against conventlon.and appeal emotionally to ~t$'YQwihfulcustmners_
A&F'sFll'th Avenue store symbolized the values the

p'l'o.fitability([Iet mcome as a p€1tcellta:ge of sales} among In. March 2007, A&F joined the S&P ,no stock index (replacing Univisilon Communications, Inc., which had
been acquired by an investor group). At the same time, questions [Onsted regarding the reapperel retailers in 2:007 (up from number four in 20(6).1

tailers long-term

StlC-GeSS.

Would teenagers, A&F's primary

retailer held. sensuality. a youthful lifestyle, a love for the outdoors and fun with friends. It was the culmination of tile retailers creative endeavors to design and implement an

targetmarket, remain loyal to the company and its products? Could A&F bring back some of the shoppers u had alienated became of its treatment of minority employees and its racy slogans on Its t-shirtsi Wowd A8if be able to manstun Its oompetitive advantage In a fragmenredindustryin which new entrants from both the United Statel'jas w"cll as from overseas markets were intent on imitating A&F's strategies? Should CEO Ieffries be concerned with the exodus of

2£

faced increased conspetnion from such department store chains as. JCPelmey and Kohls, which started offering more fashionable and exdoKive pnvate label goods, A&F faced some threat of being an acquistnon target Many private equity transactions were completed in 2007, Apollo M.anagt:ment LP acquired Claire's Stores Incorporated (a teen accessory retailer) for $.3.1 billion: Golden Gate Capital acquired a 67 percent stake in The Limited's Express clothing chain. Private eqUity firms saw an opportunity to turn around struggling businesses and get them ready fm resale. When retailers went pnvate, they no longer had to. report comparable same-store sales or quarterly eerningste investors, they could concentrate on improving their business operations,' Believing that "trend transcends age:' A&F catered to cool, attractive, fasbion-conscious consumers by of· fering products to meet their needs through different Hfe stages-from elementary school to post-college.t The retailer managed four brands: A&F: This brand was repositioned in 199.2. It offered apparel that reflected the youthful lifestyle of the East Coast and Ivy League traditions for 18- to 22-year-old college students. In February 20Cl7,the A&F brand operated 360 stores in the United States (dose to its capacity of 400 stores), abercrombie: A brand that was launched in 1998 targeted customers aged 7-14 with fashions similar to 'the A&F line" In early 2(l09, Abercrombie operated 177 stores, Hcllister Company: Launched in 2000, this brand targeted 14-tQ IS-year-old high school students with lower-pslced casual apparel, personal care products, and accessories.It promoted the laid- back, Californla surf lifestyle in tts 393 stores by early 2007 (wiithpo· tential for many more). Ruehl: This brand was launched ]8 2004, and grew ttl Include 14 stores by 2007. It sold casual sportswear, trendy apparel, and leather goods to post" college corasumers in 22-35 agegrotlp. Its line of clothing was inspired by the lifestyle of New York City's Greenwich Village. The merchandise was more upscale and. more expensive than the A.&Fline. A fifth store concept was on its way. A&F refused to reveal details; although Jeffries remarked that accessories-> hats, totes, fragrances and jewel ry-were 11. growing and importanr part of the business," Rumors circulated that the retailer 'would launch either an accessories brand or an. intimate apparel line with its own store locations. A.&Fhad three matn competitors. Two were the publicly held fi:rms of American Eagle Outfitters (AEOS) and the Gap ..A third firm, J. Crew; had been a privately held firm until June 2006. For basic comparative financial data, see Bxhlblt] (five-y,Emr ata for T. Crew are not d

talented senior executives from his top management team.? Who would eventually succeed Jeffries? Wowd the retail.er's new corporate governance and diversity initiativ~8 pay off<

A&F was considered a \'pectaJ.ty

retatler"

Retailers in

this ca.l:egmysQld products in specifi.c merchandise categories (e.g., apparel, footwear. office supplies, home
O!r toys). Numerous small ca'leting to local tastes and preferences .. Sometimes their financial performance was adversely am~ct~rl when a competitor entered their niche Or when the preferences, ljfestyles, and demographics of their target m arketschanged, As young people became interested in €lectronics and began spending more and more time playing video g;tmes, for example, the fortunes of retailers such as Best Buy rcseat the expense of retailers that included Toys ~R' 'U$.~ Specialty apparel retailers opened stores in. shopping malls and constructed free- standing units along major roadways, The firms enhanced their capabflitles to sell products via directing mailitlgs of Qiltilogs and through Web sites equipped with shopping cart technologies, To compete with mass merchandiser and department stores, they hied to (a) maintain high prices and high-quality merchandise; (b) cultivate custosnerloyahy through various membership program.s; and (c) promote thelr own private-label brands. Crew, for example, offered hlghend, limited edition items (e.g, crocodile sling backs and silk wedding dresses), which created excitement and en" ticed consumersto buy early at full pnces, Chico's FAS Inc. o.ffered-a customer loyalty program; Passport Club, which gave customers discounts and other benefits when. their purchases exceeded $500. . In 2007, consumer spendingdghtened as the eeonomy slowed. Individuals spent more 011 gasoline and food and began to cut back on other pUl1cha.~es amid lower consumer confidence and a slump in the housing market. Retailers saw declines in customer traffic and sales in J Illy, the start of the usually brisk back-to-school shopping season.' JuJy same-store' sales (i.e., sales dollars generated by stores that have been open more than one year) at A&F, American Eagle Outfitter'S (AEOS) , and the Gap fell 4 percent, 6 percent, and 7 percent.respectiyely. Demographics began to shift; the: baby boom generation was aging, 11)QSesp'eci~.ry' apparel retailers w])oappealed m%tly to teenagers realized that they needed to hold on 10 their consumers as they entered their twenties. A&F, AEOS, and even the G<i!pbegan to open, with Va:ryil'lg degrees of success, stores that targeted an older demographic. Rivals who already catered an o-lder consumer group, such as Ann Taylor Loft and Express .LLC, were equally eager to lure such young "JultiS a1''i'a.y.~ Speciaity apparel retailers abo
to midsized frrms existed. They survived h}i

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Under pres.:;!.!.!'.: from the board of direcresigned in january 2007, Glenn

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Based in WanerJciale. Pennsylvania, AEOS sold lowerpriced casual apparel and accessories to men and women aged 15-25. The Schottenstein family (who held interests In Value City Department <Ina Furniture Stores} owned 14 percent of the retailer, ABOS. operated more than 900 stores in the United Stat-es and Canada with appro:.umately 40per(;f:nl of its stores located west of the Missismppi River. Revenues in fiscal 2006 were $2..8 bllllon (an increase of 21 % 'from fiscal 200.5); net income reached $387 million {an increase of31.9% from fisc..a.i200S), ,AEOS launched two new store concepts: in 2006. Martin -1- Osa. was a clothing store selJ.i(lg denim and active sportswear targeting men and women aged 24-40. It did not perform as well as expected. Efforts that ineluded replacing its president with a former Liz Clafborne executive were underwey ID.2007 '10 make the wemens merchandise more feminine, less outdoorsy, less expensive, and of better quality. Aerie was an intimate apparel sub-brand that was launched adjacent to existing ABO$. stores and <13 stand-alone stores, It was successful and. plans were in place to expand upon its merchandise with fragrance and personal care items. J. Crew operated 227 retail and, outlet stores in the United States. With. a joint venture partner, it also had 45 stores in Japan .. NHlla["d "Mickey" Drexler, former CE.O of the Gap, headed the retailer, He promised that J, Crew would "be the best, not the hjg,g:eSt:'l~ Revenues in fiscal 2006 were $1.15 billion (up 20.9% from nsca12005). Net income (applicable to commo~ shareholders) m flscal 2C1061t1':aS$7L6 million (or $U19 per diluted share) COmpared to a net loss of$9.J million.for a loss of39 cents per diluted share) in fiscal 2005. J. Crew launched Madewell, a casual clothing store for women. which sold merchandise at prices that were 20~30 percent lower than J. Crew merchandise. lts initial public offerlng of common stock ill June 2006 raised~ $402.8 million. At the time, it was toe lh ird ~a[geslapparel retailing 1PO in history. Whereas J, Crew wasthe smallest of A&Fs direct cornpentors, the Gap was the la:rgest with 3,000 stores worldwide. The Gap soJd basic casual clothing and accessorles for children, men. and women. Revenues in fiscal 2006 were $15.9 billion (a decrease of 05% from fiscal 2005); net income was $718 million (a, decrease of 30.1 % from 11$&1 200S), It operated Banana Republic (high-quality fashionable apparel) and Old Navy (low-.... priced trendy doming). lis most recent e:ntry,fcllih & TO'I"fn€ (stylish apparel fur women OW-I 35).w1lS open for 18 months before being sf'I.'Uf'ab~'iF1:The Gap was struggling to turn around its performance, which began to decline in 2000 when it overexpanded. assurned too rnnch debt. anti made a few fasni.oIHclatfd

Murphy. ·... had been the CEO ora large Canadian drug 'h(! store cham, was hired to replace him. The firm also hired Goldman SaGh~ to explore strategic options for th e retailer Rumors circulated thai the compaey lntended to put itself up for sale Or to spin off one of its divisions. most !ik.ely Banana Republic.

A&F was founded

in ] $92 by David T. Abercrombie (see Exh~bit 2 for key milestones in A&lts history). Abercrombie was a civil e-ngineer) topographer, and colonel in the Officers Reserve Corps. He W1l81l1$O<l1J avid hunter and fisherman, The first store was, located em Water Street in lower Manhattan. Ezra Fitch, a lawyer and one of Abercrombie's best customers. became a partner in 1900" The two men frequently argued. Fitch continued to run the cnmpa:i:'l)' after Abercrombie resigned :in 1907, A&F's 12-story building on Madison Avenue and 45th Street opened in 1911 ,It featured a log cabin and casting pool 011 the roof and a rifle range in the basement. The store's, locatio!'), was excellent, By 1923, Madison Avenue and 451.h Street had!. become the "heart" of the "specialized shop trade," I Near A& F s flagship store were Brooks Brothers, llff.iI:ty Studios, Eastman Kodak. and Maillard's. The Roosevelt Hotel was just undergoing construction. Abercrombie died in ] 931 at the a:geof 64. Fitch died of 3. stroke aboard his yacht in Santa Barbara, California, in 1930 at the age of 65. A&F's managers promoted it as • The Finest Sporting Goods Store in the World;" An early advertisement announcing the' opening of a new store on 36th Street appears ill Exhibit 3. A&F was blown for its expensive and exotic goods as well as for its affluent clientele, It was possible to buy an antique miniature cannon for $300, a custom-made rifle for $6;(lOO, or a Yukon dog sled for $1,138. Presidents William Tsft and Warren. Harding purchased golf dubs at A&F. President Dwight Eisenhower boughehunnng boots for $55 fo:r his walks in. the woods at Camp David. Other famous customer> ineluded Amelia Earhart, Greta Garbo, Charles Lindbergh, Clark Gable) the Duke of Windsor. Howard Hughes. and Ernest Hemingway. A&F w(J;S not jus~ :JJ place to purchase sporting goodS and rugged apparel, It was also a, place where individuals couldlearn new skills and get involved in the community III 1923, the Adirondack Ciub held its annual meeting in A&F's log cabin. Its mem bers discussed whether ,U1 ope..n season should be declared on beavers whose dam -bl.lj]djng activities were causing floods, damagingtimber, and mining: troet streams. In 1966. A&F held a lecture on

1::xhibit

Z Key Milestones

m A&F's Early Histo.y

19Ct_
1917 '92B: 19:29: 1935: 1~O; 1943: 1958: 196'1 :

t.bercrOnlOie Ht[;lgneci from the company

A~Fs 12-3tory !)lJiLt;I..ng01'1Madisol~ .A"'il[1'"S and <l,!;I1tiStrest opened. by James S, Cobb. ~.

Em f'i~h resigned as p esident. fie was succeeded

A&F aOQ'uired an lntereS1 inVOr:l If.)ngerlw &. De~mOld, a gun, camp, and fishing cna,n basad ln Chic8'90. A&F earned a net profit of $'148.12.3 'Upfrom $ i23.424 in the P'E!Vi:)lIS year. Olis GUemsev was elected ~r'l1Ish;l!fHl!and CE:.O. A&F eerned a net. pwri1 01 $286,694. A sters in San Francisco opened, .John M. Ewing m~d-19"60s" became

president and CEQ, su~c€<eding GuemS9';'- Earl Ang~t~dt

b<acame ·!he president

<1rlCI EO!n the C

1962; 1963: 1967:

A&f oDflJ),eo ~ store in Colorado SprinQiS. Colorado. A&f's opened a store in Sllo,rt Hills, N&;v Jersey.
A&F a,CQi,Jired the Crews Nest, a nauti-cal supply stOre witt, a rl8tione,I mai,1ercer business. rose to $800,000.

1868: 1970~

Sales peaked at $28 million ~fld net inwme

Angsliiidt ~~igned. He was replaced byWilii:>m Humphreys. Humphreys as CEO. A&F lost money svery Y<*llunttl19n: A s,tOF'e a C hic..ago suburb opened. irr

Hen,ry Ha s5<:e a m.jor .shareh-otder, soon r"pl<lc~d I!,

1977: 1978: 1988:

A&F de-,clllr·!ldibenkruptcv. A&f

was cacqoired 0\' Qshma.n's Sporting Goods InC"-orporated_

The Limited acquired A&F from Oehrnen's.

188'9: t992:
i996: 1889: LOC)!:

Sail'? Frarne-Kasaks was na med president a nd (:hi[lT executi"I> of A&F_ She left in 1992_
Mic'laal Jeffries became

president and chief executive 'of A&F,

Limited ..

A&F was spun otf frQrnThe

The com penv operated 186 A&F stores <inc! 13 eberorom bi 9 stores,
_A&:F opened a new 260,OOO·sqUllre·fOClt corporate Ohio, It cost $130 mi!lion. office and
11

700,OOO-"CIlJi'lre-ioot

distribution

center in New Albany:

how to capture a musk ox bare -handed without harming it. In 1967, A& Fran afishing clinic in which experts discussed tackle, knot tying, and trout angling techniques.
In .1973, A&F served flambe in the log cabin's fireplace, in celebration of a talking cookbook i'E had produced. 'The cookbook contained. two 40- minute QSSeUC3Sand a booklet of recipes printed on waterproof

fad arriving from the W€st. A&F sold bigh-quallty

BBQ

quail,

prepared

and grease-proofplaetic, Throughout its €!"'!dy history, A&ifi did a good job keeping l~pwith its customers and with changing fashiO.M. During World War II, when acnvittes such as parlor skeet and muilary board games were popular, A&F sold a wooden box that could be filled with water and used to blow sailboats from side to side. In the 19405, barbeque picnics in fields outside ccuntry homes became the latest

cold. In 1964. A&F made a splash when. it developed the capacity to sell a ceshrnere sweater, with a.lifelike reproduction of a color photograph of one's pet embroidered on it. It sold resort 'Wear with a fruit motif in the 1940s and Bermuda-length culottes inthe 19605, A&f had a dearly defined target market. CEO Anstadt said, "We aren't oult for the tE!€nag-e business, Om customers are em the go and have the time and. the money to enjoy travel and sport:'lZ A&F had its share of problems. Some were typical of all retailers throughout the decades and some were atypical. During the early 1940s, A&F stores were low on inventory Commerce had been disrupted by the

equipment and insulated canvas bags to keep drinks

Exhibit

3: A,~ Eerly A&F A.Overtlsemer1t in the New \'brK Tim~·s, \912

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available labor had overwhelmed the postal services and caused delays. At least twice in A&Fs history, a customer used one of the guru: on display in an A&F shop to commit suicide. The first shootingoccurred in 1932, when the son (If a famous horse breeder killed himself, The second shooting occurredm 1968 when an immigrant from Czechoslovakia killed himself Subsequently, extra care was taken to ensure that every gun was fItted ...... a trigger lock and kept in 'ith locked show cases, CUS;1:0me:rs - were no longer handed guns or ammunition over the counter: upon purchase, the firearms were delivered to tbeh homes.

wartime effort.. It was difficult to import goods from abroad. Manufacturers were-busy maki:ng binoculars, field glasses, saddles, and marine docks for use by the army -and navy. A.&Fwfote to its customers, asking {hem ifthey would lilre to sd~;;;;al O~ sporting goods in satisfactory condition back to the retailer so that the items could be refurbished and resold to new customers, One year, the Offlce of Price Administration placed limitations 011 civilian consnmptioncf rubber products, whkh caused a rush On golf bglls said by A&E A&F joined other retailers-in asking,-:'-cusconiersto do their Christmas shopping early in November. A lack of
_o··
~....-Ij''':'_ ", •

Employee theft and shoplifting occurred.In 1915, fu( exa:mpte, Gustave Touchard, Ir., a champion tennis player;, was dUlrgedwi th $t¢ahng 48 dozen golf bans w()i~th $288 fl'O;ti an A&F storeon 36th Street. He had worked at the 'Storeas a manager of it5 sporting department. In 1923', a weL1··dn1~S;Soe:d WO!lJaJl was caught with 21 yards of Scotch L"iIY-eOO doth hidden in the ulster (Le.. a bulk)' overcoat) , she waswearlng. The theft occurred a few week-s afte~ two sisters who shopped at Macy's while carrying ,small dogs in their arms were aught with stolen items in their wide sleeves, In 1969, inventory shrinbg'€ (from bookkeeping ermrs,internai theft, and shoplifti:ra:g) totaled ,$ 1 million (up from between $600,(100 and JJ700iOOO the pl'evi.o'll~ ye1l:r}_Th~s problem contrlbured to-the retallers pretax loss for the readl Between 197(1 and 1976, A&f contimsed to incur fin nancial losses. Inthe fiscal year ending January 3.1,1976, A&F incurred i3: net loss of $1 million on sales of $23 ..3 million." The loss fo]iowecianno,al deficits: .tall,ging from .$287,000 to $5-40,000 every yea!' since 1970. L~ A&F's best rear had been in. 1968 when it reported pretax earning.s of$866,000 Om sales of ~2g million," Mansgers began to se<'!tchfor a possible buyer of the firm. No one was serioudy interested. In August ]976, A&F .filed fer ·b'itnkruptcy. It held a sale tfJ Uqilidat'e its inventor}' oUS.5 million .. A sign ill the retailers Madison Avenue store read: "They $ay we're 51uffY so w<!re moving: the stuff out at tremendous reo doctions on all 'fiocm;:'J' After the sale, the stores were dosed, A&F's difficulties were attributed to competition from mass marketers (e ,g" He~mann'sWor1d of Sporting Goods) who sold discounted meechandiae, to the Jack of professional managers and leaderub~p~mnoveI (the retailer had three different CEOs in the preceding six years), to high overhead costs, and to fewer customerswho could afford its exotic, high&prked! items. In 1975~ Oshman's Sporting: Goods .of Houston acquired A&Fs name, trademark, and mailing list for $1. 5 million. A&F'il slogan was changed from "The Fine-st gpor~ilJg Goods Store in the Woild" to: "The Adventure Goes On:' The new owners had studied A&F'" business model for two years. According to lts president, J erty L Nanna, HWe ex:amioed the original business, took it apart and reramsd the good qualities. We also retained some of the legendary old products that Abercrombie had and expanded theirveriery, Butt we dropped mcst of the tailOled , clothing that proved to bea drain:~ls The owners believed that they could brit1:g A&'F up-to-date. to the sryles of the 1980s ..The chatn expanded. to 12. sto:res, sales of $.20 mil" lion were expected in 198:2, 111 1988, The Limited aeqmred 25 .A&F stores and its caotalog business for $47 million from Oshmans, 'Iwo addttional stores wereclosed. AI the time, The Limited. operated 8.. chain of:3,100 stores that seld wow ens apparel,

and chief executive of A&F, aret:a~]jn.g~lJlii of The Limired, A new format was lmroduced, The chain began. to c:"Jrr :;,t$l,ml. classic Americ;irl clothes formen and. women in the twenties', A&F became one of The Limited's fa5l5l:growi'lg d1vwicm-5" The number of stores grew from 40 in. 1992 [0 113 in 1.996. Irs sales Increased at acompounded annual rate of 40.3 percent during those same years." In 1996, The Ltmit:€a SpUr) off A&F. leffrtes staved on <\~. CEO.

Irr 199.2, Mi.th<ld Jeffries became president

Seni Or' Executklles and Corporate

.Governance
Michael Jeffries got hls start in tE:tailing at 1J...O early iI.ge when he helped his father select the top that were sold in the family's chain of parI}' supply stores, He also enjoyed organizing and designing the wmdow and counter displays_ ~Bo:rn in 1944, ]e:ff'riesreceived a BA in economics from Claremont McKenna. Col]eg.a and an MBA from Cohunhia University, H.e entered the management training program of Abraham &- Strsus (a New York department store that belonged to Federated] in l%8, From there, he went OIl to start a women's clothing store, Alcott &, Andrews, whteh later failed, He: wo.rke:d io rnerchandislllg at Paul Harris, which 811so went bankrupt.2G In hj~ ilip·nopos, polo shirt, and torn jeans, J effrles embodied ~he casual look of A&P mote than anyon.e else. He made sure that A&r's apparel reflected the lifestyles of college students. Teams of designers, merchandisers and. marketers visited colleg+t campuses once a month to talk: to students and find out what they.like and. how tn.ey spend ~hei~ time" On one of those visit$ in 199.8, J effrie.s saw someone wearing nylon ..'lind pants. A&.F was quick to make. its own version of the pants, Tom Lennox. A&f's director of corporate communications and Investor r&~ noes once said, ~Ve just believe that It is our job to position Abercromble & Fitch as the co.oles-t brand, the brand with the greatest q[u<llity,the aspirations] brand of college students'?' A&Fs success did not make Jefides. complacent. He was quoted as saying, "Every morntng I'm scared: I'm :>Uperstitfous, 1 come in every morning being afraid to look a yesterday's. figures, amd f. 'Want everyone else-to haw !hM same kind. offear;'1J He worked hard. and constandy traveledfrom store to store. He .... 'a.5alway.s thinking of'ways to ext'etl.dlh~ A&F brand, J defIes had a few eccentJ;:ic habits" He went through revolving doors twice, parked his black Porsche at an odd angle in the company's parking lot, and VI'O.!'e ssme lucky shoes when he reviewed the financial reports." It was almost as if he felt that his finn's good fortune GOuld. change at any time"Petnaps he realized that his primary targeteudieaee-cteenagers=was fickle and tb a t tf'f;!J;J.dy apfHl.Id qu~ckly became outdated,

Between 20m and 2006, A&F had three different chief financialofftcers and two different chief operating officers. The latterposition remained unfilled. In July 2003, \0\ esley M£Donald, who had been A&F's CFO for four years, left to become CFO of Kohrs Corporation. He was replaced in February 2004 by Susan Riley who had held CPO positions at Mount Sinai Medical Center, Dial. Corporation, and Tsmbrands Incorporated, In August 200S, Riley resigned for familyreasons and returned to her home in New York City. Midi.ad Kramer became A&F's new CFO, He had been the CPO of the retail unit o~ Apple Incorporated. He also had retail experience working for Gateway Inc., The Limited, and Pizza Hut. FIe had a BA in business administration and accounting

to the retailer. As chatr ofa real estate development firm owned by The Lnnited's CEO WeXller (Jeffries former

boss), Kessler sold the land upon which A&F built its
headquarters in 1999. He received a fee for finding the site, Kessler's son-in-law, Thomas D, Lennox. was A&Fs di-

re.:;:torof investor
Shahid, president

relations and communications. Samuel

andcreative' director of the advertising

agency that received $2 million a year from A&F {mits services, was. a board member until. M~y2005, He was replaced by Allan A. Tuttle, an attorney for the luxury . goods maker, Gucer Group. Although Tuttle did not have
fmanda! ties to A&F, he was a friend of Robert Singer, . who at the time was A&P's president and COo. AISiF denied wrongdoing and settled the lawsuits to

from Kansas State Unrversity and was a certified public

accountant,

"avoid the uncertainty, harm and expense of litj_g-ati-r:m,"25 As part of its agreement with shareholders, A&F
ised to provide more public information about execuuve. compensation and 10 add independent members to its boardand compensation committee. A&F faced a formallnvestigeuon hy the US. Securities and ElC,hange Commission regardmg insider selling stock in June and July of2005, when A&F's stock price was high, Jeffries sold 1.6 million shares worth ,$120 million. In August, share prices declined. after the corneanv announced it would IniSS Wall Street expectations . ga.rding its second quarrel' earnings. A&F was also .' for making false and misleading statements of .UL,uU.ill';

Seth Johnson was A&P's COO between 2000 and 2004. Before that, he had been its CPO. Iobnson was credited with keeping costs down by reducing payrol] and travel expenses. He was responsible for in&tallit'l.g
compurer systems to help A&F's distribution. system run

more efficki'!J.~Iy.He had aspired to (l CEO position <lind "V'llJS offered such an Oppoltu:nil'y at Pacific Sunwear of California. Inc. Robert Singer, the former ~FO of Gucci, became the next president and COO in 200·1.After 15

months

011

the job, Singer resigned to become the CEO of

Barilla Holding SpA. Disagreements about international expansion were cited as the reason for his departure.
Sl.fl.ger~s duties were divided between John Lough (executive vice president of logistics and store operations) and Michael Kramer (CPO). Search for a. replacement began. Unlike other retailers, A&F did not have division presidents for its brands .. Merdumt.s from different busi-

and quarterly sales figures and for failing to disclose .

profit margins were declining and inventory [ising. company- announced that it: was cooperating with the SEC and that the shareholderlawsutt had no merit.

nesses reported directly to the CEO. They did not work within a particular brand. Instead, they led categories (e.g, denimor outerwear}. They were responsible for these brands across each of the, companys divisioo,~.That

Store 'Concept and Marketing Strategies

"W1li.en customers walked into an original A& F . ing store in a local mall and they were often greeted a young, handsome salesperson wearing the latest • ion in casual attire, The store's lights were dimmed
posters of attractive models wearmgits trademark pants and polo shirts adorned the walls, In some chandeliers made of fake deer antlers or 'wt"r,,"~'" moose antlers hung from the ceilings. Apparel was folded and placed on long ,...... ooden tables. The hip, trendy, and <'A1J-Amerkan" look was relnfOlced the pJay.ing of loud dance music and the spraying cologne. The intent was to provide a sensual that appealed to a shopper's sense of sight, smell, sound. According to marketing expert, Pam Da.l1:zige~, "Shoppers an~ rejecttJilg the old concept ofhuntlng .. gathering' shopping in favor of a more involved; . ing, 'd)'l1<1mk retail experience.~16A&F \V<l.S able 10

way; their expertise and

knowledge

could

best

be lever-

aged and exploited A&F encountered criticism from shareholders reo gardlng executivecompensation and the composnion of itS board of directors, lnFebruary 2005, shareholders charged A&P dire, tor. with wasting corporate assets by paying CEO Jeff6t>s $22.9 million in. salary, bonus and
stock 0pUDilS, The company settled the law suit and Jeffries agreed to reduce-his $12 million bonusto $6 million and to forgo !'I.BW stock options for two ye8JTS. The bonus was contingent oa meeting specific earnings targets, Ieffries wouldreceive the full $6 million bonus if

A&F's earnings per share increased by 13.5 percent between, February 1,2005, and January 31.. 2()09.2A ._ .Sh<lr~holders also expressed concern over the inde-

pendence o{A&H hoard of directors.

chair of the compensation

John W Kessler,

committee:,. had financial ties

cessfully implement an exciting storeformat,

Ever}' A&F ~to.~," W"3.S d~)ign€:d accordlng to one of several specifi cmodels created at compMly headq oar leTS .. The retailerwanted complete control oyer its brand and to communicate a consistent m-essage :~I\ ll stores across a the nation. J effrles himself made sure the mode'! stores WlOrO!! "p@r.fect:~jf The prN.atypes w("n:: phorogr ... hed and p M~~lt the store managers of the individ:u.aI outlets for to

on goods and services in' 2002, with 'One-third goilll~ t(n\;-.,![d <J:p]J1lU;PI Spending in 2005 w<i.$ bwer at $159 bllho.n.'" "Ieen retailing was considered
16 b€ somet . hat v

replication- Jeffries was known

e detail, He vislted stores and made sure that {ht clothes were folded correctly He approved the background rnusic to be played in the stores arid selected t1~f appropriate volume level for sllloeatlons. He even .gave suggestions on how manneqelns could be made ro look more rugged and masculine. A&P's Web site (http://WVirW_aberc:ro.m.bi·e.com) was created to match the fed and. aura of its stores as much as possible. lit featured striking blsck-and- while images of young people in outdoor sethngs: Many of the male toodd(i were shirtless, and the :female mod~,l$ 'WOre skimpy shorts, Web surfers could vjew film dips and download wall pilper while listening to sensuous music. According to Porbes magazine, the Web site's best feature was ~he photo gaU,eIY' ibl.)1.'I'ing iooag~.s of the models that made A&F famous, Its worst feature was that its line of clothing WM not shown by the models," A&F extended its successful store concept and marketing ideas to its newer bum! name stores, Hollister Company and Ruehl. Hollister stores were deslgned to

ry

[(It

paying

;lltl:e.J)tion 1.0 ev-

recession-proof Although teens worked for low wages, they had.rnultipls revenue su-eams-habysHling. paper routes, part-time jobs) and assistsnce from parents." They llSUllliy d~.rl[t(}t have financial obHgatim.ls (no mortgages or bids to pay.) Parents, too,Wfremore likely to spend money on'their chlldrea t\1an on themselves. A&F's busy seasonswere spring and fall ..Forry percent C D of its saleswere reallzed in the spring and 6D percent in .., '" ¥ the fall (durmg the beck-to-school and holiday sesson pe- "cr.; ~ rlods), It hiredextra e.mpI0)'resJ.uring these times. A&F 15 ,4 was ableto maintain its high prices without resorting 1Q ~. sales and discounts, It was afraid th",t cutting prices for ;3 hjg sale would cheapen its brsnd, A&F saved money 011
"ill

promonons, relying frequently on word-of-mouth adver-.

ti.&ing. The retailer claimed that it spent leM than 2perceli.t of net sales 'on marketing in 20M.1< It also kept down. itt aJ.:tninisLrattve expenses and negotiated lower fees from its suppliers. High prices and low costs comprised a formula that dearly worked. In its A&F stores, the retailer tried 1:0 introduce two Of three new 'Items in its stares €ve.ry week. It launched a J;n,EW mens line, Ezra Fitch, which featured high--quality apparel made from cashmere, velvet., and leather, A&P cultivatOOi brand loyalty. Shoppers could join Hollister's Club CalUand receive gift cards based. on how much they spent. Im.. itarions toafter- hours parties w.ith new bands at the stores were also available. Instead of marking down items the day after ThanksglYin:gin 2004 (the start of the busy Chrlsnnas shopping season), preferred customer" who spent $1,000 a year or more were invited to a live concert given by Ryan Cabrera. The concert was also shown on big screen televisions in. 50 other HoUister stores around. Ihe nation. A&F generated controversy; Adults often reacted negatively to its catalogues, revealing clothes, and racy slogans (for some examples, go to http://W'<\''''r:.n}'t:lm~s .comi2004./03J23inational/23WVA.html !ex= 1395:378000 &eliJ.""S24d455 7307 51 a9c&ei",,5007 &rll_[ tneP'=USlERLAN D,. l'lttp:! (news. bbc.co.uk/ li/hi!w:o:ddJ:a.s,ia-paciftcf 193-8914 .stm, and http://W'ivw.sptimes ..comJ20GS/11/OS!Floridianl It_5_gtr:rl_pow€r_\fs_A~htm!)_ Some teenagers, however; might haveresponded positi\<'€ly to its .&dvertising in a show of rebellion agil:ln.st the traditional values and life.stylesf,lftheir parenrs, Teens were reluctant to shop it) the same stores as their parents. Some observers believed that

look IJke beach houses

wl:!h

faux

PQrcll€S

and house styli::

layouts. The name came from a span of g<lted coastal property north of Santa Barbarawheresurfers liked to hang out. Surfboards leaned a.gainst the storewalls.Pans blew constantly to mimic the breeze coming in from the ocean. Shoppers could sit in comfortable chairs and read surfi;ng, $katet>~.H.rdin.,g.and snowboarding magazi:nes. Ruehl (rhymes ",1tli. "coed") stores imitated the <11'chitectureof Greenwich Village with red-brick facades, iron fences, flowerboxes, and small windows. They looked like brownstones, Ruehl was thee name ofa fictitious German IlImily who had come to America in the 1850$ and opened a leather-goods shop in Greenwich ViUage. Couches and armchairs were available for leungin'8- Copies of the 'iiill(lge Voice and New Yark TIm(l$ were found on coffee tebles, Jazz musicplsyed. Signs· were no! posted outside. The shopper was expected ·to stumble upon thestore just 1)S if be or she we're: walking 10 a cityneighborhood, the great ·find" would be spread via word-of-mouth," Experts reported that young people want to be part (If a brand $torfl~ A&F had! an €nviahle target market. It catered to t:een.agen, whose population in the United States wasexpanding; In 2003, 32 million teens lived in the United States. This Dumber was expected to rise to 35 n':Ii_Uj@ by 2010. MQreCiVe[,~eens spent ,a:ppro::dmate1r s:70 billion

A&F purposely created c:ontrovenry and engaged in risky practices to attract attention, draw in shoppers. and sell more products. As au <ll1illyml wtrh Midwest Research in Cleveland remarked, <:Abe~ctombie is nN a oomp.anryttb:at
really carel> about backing
USe 1JiWs,}'

from controversy. They

are

corutroversy

<IS Oil free

advertislng gig and

successful

in driving traffic into the St0res.'·~

- ,,_ Here b a. list of A.&:F's controversial moves: Institute for Alcohol Awareness, a public aavor.;a0' group that worked to reduce underage drinking. Thi~ time, A&F responded to criticism before the is-Sl:!.(; was reported in national newspapers:" In November 2005,24 participants in the Allegheny County Girls as Gnntmakers program, otg;miz.~cl a "girlcott" ofA&F stores to protest its "attitude t-shirts" that featured such slogans as: 'Vlhoneeds brains when }'Ouha~'e!hese?"; "Blondes Are Adored, Brunettes Are Jgnored", "All MSl) like Tig Old Bitties" Other groups; such as Peace Project, <In anndiscnmt nation student dub in Norwalk, Connecticut; and the Women 8< Girls Foundation of Southwestern. PeD,I)sy!vr;.nia, joined in. A&F pulled two of the more offensive Tvshlrts and its executives agreed to meetwith several of the protestors. The girls suggested that the retailer print mort appropriate slogans such as: "AU This and Brains to. Match" and «'Your Future B08$~' The.y hoped the firm would launch such a line and donate a portion of revenues to groups like theirs."

'", ...
IJ>

o '"

Jn July J 998; a ~to'[y entitled, "Drinking WI :" appeared in an A&F Fall back-to-school catalog. It featrued, recipes for alcoholic beverages and a gam.e for helping students decide which drink to mix, After be~ng criticized by Mothers Aglilinst Drunk Drrvtng (MADD), A&F deleted the story and sent postcards to students who received the publication by mail remmding them 10 "be responsible., be 21, and don't ever drink and d_~N'\!~"~' In April! 2002, A&F sold a line ofT-shirt!> with ASian cartoon characters and, matching ethnic slogans: "WOllg Brothers Laundry Service, Two Wongs Can Make ltWhite": ·'Wok-N-Eowl."; "Buddha Bash, Get Your Buddha on the Floor:" The retailer took the T-shirts off store shelves after protests from college students from campusesaround the country A&F's spokesperson, Hampton Carney apologized, saying 'It ls not, and never has been, OUI intentionto offend <'Inyone. These were designed to add humcr and levity to our fashion line; Since some of our customers were offended bythese 'l-shirts, we removed them from all our stores?" In May 2001.; A&F sold thong underwear for girls 10 years and over with sexual phrases such as '<eye c<1udy' and "wink, wink" p.r:inted.oo. the front. Familyadvocacy groups and Christian organizations protested .. The line was recalled in Washington, D.C.. area stores," 1]'1December 2003, under heavy criticism frern p.arents and consumer groups. A&F decided to stop publishing its provocative catalog, AdoF Quarterly. Us holiday issue featurednude models and articlesabout group sex and masturbetlon," Ia March 2004, Bob Wise, governor 'Of We~1Virginia asked A&F to pull from'tts shelves T-shirts 'ViI'ith the slogan, "It's All Relative in We,st Virginia:' Wise explalned that the slogan was offensive because it referred to a stereotype that West Virginia was a state 'that condoned incest." In October 2004, officials of USA Gymnastics sought 'the immediate removal of a T-shirt depicting a male gymnast performing on. the still rings alongside the phrase. "L is for Loser."-They wrote a letter to Jeffries saying its members would be encouraged to Withdraw their support of the chain," . In .lVhy lOllS. A&F quietly pulled il line of T-shirts from its stores with slogans (hat read: "1 Brews Easily,""Candy Is Dandy But Liquor Is Quicker," and"Don't Bother I'm Not Drunk Yet:' The company was criticized for g1o:rity.ing underage 'drinking and promoting a lifest;yleihM wasmeg:al fa,t.Jts~ target au.diem;e, P-ressure ~ f~.om the I*rnati.onal

Logistics and Supply Chain

Management
A&F operated solely as a retailer. It assumed responsibility for creating and managing its brands. Unlike other businesses, A&Fdid (lot distribute Us apparel and accessories through wholesale channels, through hcensmg, or through franchising, Abercrombie clothing CNllJ not be purchased in department stores or in discount stores, It could, however, be purchased online via the A&:F's Web site ..E-commer-::e transactions generated more than $100 million in business iOl. year. H During 2005 •.MF purchased merchandise from approximately 246 factories and suppliers located around the globe, primarily in Southeast Asia and Central and South America. It did not source more than 50 percent of its apparel from any single factory or supplier. The design and development process for a garment took between six weeks to three months." Retailers struggled to reduce this time so as, not to get stuck with inventory of merchandise that lost its fashion appeal. A&F made the " process. more efficient by centralizing its design services at its New AlbilliY headquarters, which reduced overseas travel of executives. A&F also operated a dtstrtbunoe center in New Albany, Ohio. Merehatldise was received and inspected and then distributed to stores.via contract carriers. It was here' that concepts for new drvtstons were created ru;td prototypes for new stores were Co.rutrucled, The' new formats were kept secret until their launch dates,

A&F launched an anticonnterfeiting program in an effort to protect its brand and prevent low-cost manuiw:turer1} ill Asian factories from. making imitatiom of jts products Local aurhoritles seized 3C1Q,OOO pairs of fake Abercrombie jeans, (worth $20 million) in a raid of a Chinese warehouse in 2006.. The retailer hired a former FBl agent to head a W-penon department to conduct Investigetlonsoverseas and 00 work wlth fur-eIgn <I urhorities, <;; A&F began experimenting with radio frequency identification (RFTD) technology i.n its Rhuel stores that sold higher-priced and higheJ:-ql1aHty merchandise. Tagsthat could be monitored electronically were sewn into the seams o:f garments, The location of the garments could be tracked, enabling an employee to quickly return to the shelves garments that had been left. in dressing rooms or placed in the wrong spots on die floor; The techr..o.IQgy could be used. to prevent theft and. to differentiate between authentic products and courtt:€rfeil goods,

A,&F's.Financial Performance

In fiscal 1006, A&F '1. hieved revenues vt $3.31 billion, an increase of I <) pc rcent from fiscal 2005. Its net i~~nt rose to $422:2 million, an increase of 26.4 percent from .fiscal 2_Q[}5see Exhibit 4). Earnings per share rose to ( $4.59 from $),66. A&F opened 93 new stores and added 11,/)()Oemployees W 113payrolL it bad no long-term debt it repurchased ].8 milllon shares of common stock for $103.3 million in fiscal;?D()S, but it did not make addltional purchases in fiscal 2006. It paid dividends of 70 cents a. share for a total of M·L6 mdlion, Ma;qagers at the retailer ·consider,ed Abercrombie & fitch bea maturing brand. with opportunities jor expansion ill prime locations in the Unit(:d States and with greater potential overseas. The abercrombie brand might grow to 2S0stmel> and seek locations in Canada, Hollister was seen <IS the fastest -growin.g brand while Ruehl Wa5 building: a strong customer 'base but still neededro prove itsdf(see Bxhiblt .5 for sales by brand)."

•
,

to

E.xhibit
I _._

4. Five-l'ear Summary of A&F~sFinalllliial Pertofm~lIOe

_ _

2noG--_ ~,31:e,'!Qe·
.,
.-:

2005 _

- zmD4 $2,021,253 $1,341,n4 '.£341635 $216,.376 $2.28

--

_ 20m $1,707,810

2lJ1J2 $1,58-5,7f{J $980,555 $312,3f5 .$l94,754

$1.84

.... '.

.............
{~''"

:-

$2.209:bfrs· ..,

.h

$.2,784,711 !$·1.851,416 $542.738 $333,98£ $3.66 $.60 $1.789,7'Hl

$256,422

~~.;'

• __ , "':

.~ .

$1' })83, 170

-;..

J _•

Qpefat.ing lneorne: lin thousal'lds)

$658,090
,

..,

S>331,1J30 $204,BJO
$2.06

.$422;4&3
$4,'59· $.70
T@tfll Assets (in thousands)

S.5()
$1,300,791 $185,005

0 $1,4OT.369 $159,777 0 $85Z764 l},190.615

$2,248,067 $403,476

$145·,662. 0 $736,307

l.on9- Term Debt (In thousands) $1,405,297

0 $995,117 e5'1 6.Q25,000

69,100

0 $669,326 7EB 5.590,000 48,500

Number of ,Simas

944 6,693.,000

700
5,016,00(1 30,200

59'
4,~5S,OOO 22,000

Number of Employ~as (Olverage~

• Fisr.a!100B is a 53·week Y%'. Sources: 2z,oJ-2001, AM 10-K.

80,100

Ex.hibit

5 Three-:':'ear SlJmma~y of A&F's Financial PerfOUil<IU'loo bV Brart..:;i

~' --

-----

---

.
-

~-

21106' $3:,:US, 158

21005 $.:1,784.i1; :t1A24.0i3

.'

$2;02.1,2.53
S1,2lQ,222

A.bercrombie &:Filch abe rcrOO"lbie

Hollister

.'!i1.515.123

S 405.820 $1,353.233
$

s s
$

344-,938 999,112

Z27.2G<1

s
:1>

579.837 4,140

Rue-hi

33.982

16,548

t.

--

--

200~'
Sales ...... 2% (4)% 10% 5%

2.l]U5
-

2004

. Increase (Oe<:reasel in ComP<'rableStot~

.

26%
13%

2~b
(1)%

Abercrombie
,.;) abercrombie

& Fitci,

54% 2.9% r~/A

-

1%
13%

..:. ......
'} I ~;~ ..... .'

14%
-- ---.
--

N/A

-- - ---

.~ ~"
,....... t

..

'~-' ...• ::j.,.. ."

... '.'

-,-

211m;""

21105

---

21104 $2,5'69 $3,101 $1.241

NefRe:taiil-s.des
, .. t-··· _ .• -:-• . ,_.. .

J;!e,rAve~gl!;! SbHIil '~intlilou$."nds}

• •

$3,533
$3,946

$<1,284
£3,784-

-Abercromble;'& Fltch a!;;ier,cror,obie

Hollister

$2,2.51 $3)32 $3,248 a 53··"e'l~ ye~r.

Dpet1

$1.967 1>3,442 t2JW3

$2:140 :1:1;255

~eh1""
·FiSG~12006 it

., Da·~.for au.hl r;;jlecl ~M 3ctioit;' of N ~wre~ ..,.rn3~ OOt b!; tMllnlllg.ful,

0<

in +lscal 2iJ06. B notes ®~n in ';so.~ 2005. ~OO4 Stores npen in iistm .004. Y~~"w-~r
()~~I~

comPBm,,"'s

"' •A store ;5. included "' comparable erere s~le~ 'when it hes been rwuoed by more then 20 percent w"it~in the past veer.
2005-2007, A&F 1 O.K.

as \tte same b.mrn:l.1 I"... ~ or\fl ',~af and it. "Cj!.I3,efoot~gg nas -

Il()1

ooen e>ipp'"dad

Source;;:

A&Fs Socially Besponaible Practices

A&F held fund-raising acttvines rhat benefited local charities and communities, Every 'Christtp,as holiday season •. shoppers were invited into its stores to have their pic.tute taken With. its models, The.Sl fee was matched by the retailer and the proceeds donated to foundations suc.b.as Toys for !~ts~o("the J~\'enile.Diabetes Research Fou~dation. It

held tile A&F Challenge, an action- packed outdoor event at its he;lidquaJ'l~rs in New Albany, Ohio. Particlpants who paid an entry fee of $25, went on a 20-mile cycling tour, a 5K tnlme skating tour, and a 5K run. The}' heard live music from a hand, enjoyed food and drinks and received a T-shirt. AU proceeds went to the Center for ChiJd and Family Advocacy in Columbus, Ohio. .lts largest donation·-$lO million-"'Went to a Children's Hospital in

'" . c.:olumbm;.in June 2006.. The hospitalsnew trauma center wmIld bear the A&F name. A&l: also sometimes got involved. in. issues at the supplier rod of its business, In 20(}4, it joined a boycott of Australian rnerlllO wool in an effort to force ranchers to end their cruel procedure of "mulesing" that protected lambs from illes. Even though A&f did not purchase mud" Australian wool wool producers feared that the retailer would set a p.recedent and that other retailers would soon join the boycott Tiley agreed to end the practice by 2.010 or sooner,4$

acknov ...edged that l

tile

firm

liked

to hire job candidates

who looked great. "Brand representative, are ambassadors to the brand. We want to hire brand representatives that will repres;:flt the Abercrombie & Fitch brand: with natural classic American style, Iook great while c.rnibitiilg indi viduality, project thebrand and themselves with energy and enthusiasm, and make the storea 'wann, ]Il\Fitiug place that providesa social experience for the customer," he said'>] The company ran a manager-in-training program' fur seniors and graduates. Promotion to store manage.r could occur one year after completing the traiwng, Brand representatives were expected to adbere to a dress code outlined, in an Abercrombie Associates Handbook Hair was to be neatly combed and attr_active; makeup was to be worn to enhance natural leatur·es and create a fresh. natural appearance; fingernails were not to extend more than 114 inch beyond the t~pof the fin-

Organizationall Culhne and Human

Resource Mianagement
A&F'5 core corporate values were "nature. friendships. and having fun:>'~ The values were: reflected iii eV€1'"ylihing from the decor of the retailer's stores and the casual attire of its employees to the layout of A&F's headquarters in New Albany, Ohio, and. to the :!lrm's advertising messages. If no customers were in the store to serve, employees might throw a football to OM another in the store. The

ger andnail polish was to be a natural color:

goatees and beards were unacceptable;

mustaches,

jewelry was to be simple and classic (only women were allowed to- wear earrings as long as they wore no more than two earrings
:in each ear and each earring was no larger than a dime

retailer's home-page

Oil

the World Wide Web featured a

treehouse that could. be downloaded as wallpapeT. A&F's headquarters, built in 20m. was situated in the woods along Blacklick Creek in New.Albany, Ohio.

Its campus-like setting served as a continual reminder to employees that the firmstarget audience wascollege students. it was also designed to encourage team work and creativity. Instead of using desks in indlvidualcubides, employees engaged in collaborative wOIk situated at long tables In doorless conference rooms. Employees could walk along paths in the woods to relax, think. O'I seek inspiration for a new idea. The headquarters had no executive SlIHe. Jeffries had. no desk. or office. He also worked in a conference room with a.view of the grounds from large windows. Employees enjoyed hea.lthy meals that included roast chicken, international dishes, :;;aJads., fruit juices. and gourmet coffees in the full~servi.ce cafetena. They traveled from building to building on scooters and were allowed to bring their skateboards. A bonfire pit provided the atmosphere of an outdoors summer camp_ Employees
worked out In. the g)fm. One of the architects said, <~&F

and did not dangle}.5L In 2000, the California Department of Ina:u~tria! Relations received complaints fro[;i several A&F employees who said that they were. forced to buy <lindwear [he compsnys clothes on the job, One woman if.! ancther part of the country laterclalmed that she spent more on -clothes,for workthan she earned at t:he store. Such company policy might have violated a slate work uniform law that required employees to supply the clothing wheTITthey

wanted workers

to We"J.( spedflc apparel, Ji.:o. 2003, A&F settled the lawsuit in California. for $2.2 million without

admitting wrongdoing. Employees received reimbursements ranging from $180 to $490 depending on their job status and the amount of mone}, spent on clotrrlng;" The case spurred other Similar lawsuits across the state and. the rest of'the nation against The Limited, The Gap, Chico's, and Polo Ralph Lauren, in some states, lawyers
used the faderal Fair Labor Standards Act that required employers to pay minimum wage to argue that sales as-

sedates ended up with less than minimum 'wage after spendj_ng their earni.ngs on store clothmg.
A&lP's legal problems were

omy

just beginning.

In

wants to give back to the people who work there, That's why they can go 1:.) that rusty bam the first thing inthe morning, or get sweaty in the gym and then go to work. have a great meal and then go back.to work again. it reinforces the idea that this is commlllnitt'5'D Store managero visited nearby [rate:rnitie$and sororities to recruit sales people or "brand representatives."

former A&F employees filed a lawsuit accusing the company of f8iilillg to pay overtime wages when they were required, to work 50-60 noms a week,
twD

Tuly 2003;

The plainuifs

datm th at

they we.r~ sales assodares,

wtth

no management responsibilities, but were classified as managers so thoU: tho; retailer could avoid paying overtime, According
'10 the Pederal Fair labor

Standards

Act

They were encouraged to ask attractive shoppers in their stores if they wantedto apply for a sales position. Lennox, A&F"s Investor relations and communications director.

and the Ohio Minimum Fa.ir"lage Standards Act, 11011~ exemp t employees must be paid time and a half for work in excess of 40 hours a week

E xh ~t1 i1;
iI.

(>

SV!i1m<lr'l of WmkpPare Discrim inetion Acts i 1'1 the Un ited Stilles

Title VII of the Civll Rights Act et \964 ma,kes discrjrninaticn based on race, color, lei1gion, ~€\X,and natural o{igln, iliegal. It applies to employers witJ:, 15 or more emplovees. BefOf6 Po plaintiff can fil~ It iaw5ui~. he or she must file" charge with 11'leEqual Emp-Io-yment Opportunity Commission within 180 davs of the discrimif11itory act, The t:EOC will conduct an initr<J' inve$tigation 'inc! will iltlempt to rsco ncile the pa rtles. If the EEOC d:ecides not Hl sue, it wil1 tssus a right.!c-~ue letter, giving the comp!~i.,ing pany 90 days tc file a [,i''''isui! on her own. A charging' mirtv can request the EEOC to issue a r'ght.-(o-sll6 ie;:::ET 180 days aftsrFiling the char&,>ewith the-EEOC,

IJ T!le Arneric8,ns with Disab.ilities Act 0'1 t900 prohibits. discrimination agai.MI the disabled. II appl~esto ernjJih;:YO:1S With 1!5or rncrs ~mpIOV€'Bs_Disabilitv is broad 1\1 nsdTne same EEOC proeed urss must bsfoUov .... under this EiC1 s with aTitle '111 oefi sd a action as discussed in part (01). c. The Age Discrimiflallioi1 in E:mploymen,t A;:t ot 1967 prohibit", discrimination aga:if1stemployees who ;Jre more tnan ~O \'[l(Ors old. It pertains to employers, with 10 01 moOreemployees_ The complainant must file a chargl9 whh the EEOC but can hie·a 1,I"vsuhafter waiting i)liIly60 davs after filing with the EEOC, d. The CiVil Rights Act oj H166, 42 U.S.C. Section 1981, protects <lgain-st r".;ia,l discrtrnination.Thls ststute does not ~equlir,a any filing with the tEnC and epplies to all emplo\o'6fS.regardless Qjnumber of employees, All emlJloyer's practlce is ~liegiill!f it treats one protected ·group of ,employees more r.arshl')"than others; unless the employer can prove th e practice was justified because 'oj "business neoossity,," This ect @I'IQ\I\I$ ul'Il'im,~ed -oompElflEK)tory 'lor end punitive QSnr'lOigesas '!;en as reimbursement of legel expenses,
SO<JfCIl-: , K~Der, 2005. Kru;JwI8d9il 01 disCtlrnlMtI;)n D taws "'t<!1. AVant,,; i9us.;,~ ~oflalll);.h!ml, MFl\" 27_ For mora iMo,,,,~~roo,go to htt,p://WO'.'·..,_.8OC.gC'if.{. . CI'IIru'Uc,'e, hllP:lfallanls.'iliziournals.com/81lan1Ja/l>tarles12005flJ5I.'3UI
.

In Jl.lne20-03, bwyers for nine plaintiffs filed a lawsuit against the retailer for discrimlnatlng aga.iust minorities in its hiring practices and job placement It allegedly cultivated an "overwhelmingly white workforce" and steered minority applicants into less visible jobs, II FOnner A&F employees appeared on CBS's television program 60 iv1irmtes and said that A&F was interested itl hiring employees who fit a certain look Anthony Ocampo worked at all Abercrombie store during his Christmas break from Stanford University. When be returned to get a summer job. he was told that he could not-be rehired because 'the store already had too many Fillpinos working there. Eduardo' GO!;i.:z:a.lez., another Stanford University studentwho was. Latino, was -told thar he could QIlly work as In the store's stack room or as pari of the overnight crew. At Banana R.:~ublic, be was askedif he was applying fora management position Carla Grubb, an African-American student at California Slate University at Bakersfield, felt s._he was not treated faidl' because she was scheduled to workonly. during dosing times and was asked to wash the fronTWihdow~, vacuum, and. cl ean the mannequins. In November 20(13,another lawsuit was filed against ...'A&f' on behalf of a New Jersey woman who-claimed that her application for a sales-associate position was Denied because she was African-American, A&F denied that ir discriminated against mmorities, It claimed that minorities represented 13 percent of all its store associates (whkh exceeded national averages), The U.S- Equal Employment Opportunity Commissicn - also initiated

a lawsuit, claiming that A&F violated parts of the Civil Rights Act of 1964 (see Exhibit 6 for a summary ofrelevant laws and. legal procedures), Stcremanagers reported that they were instructed to discard job applications if thecandidates did no~ possess the right look. In November 20M, A&F paid ,$50 million (induding . legal fees) to settle the discrimlnarkm lawsuits, It agreed to hire a vice president of diversity: provide training in div,ersity and inclusion to its employees <lnd managers: increase the number of minority employees In sales and store management positions; enhance its compliance and oversight processes; and use more minority models in its advertising. The retailer promised that within two years its sales force would be 9 percent African-Americans; 9 percent La.tin.Qs; its current percentage of A$;ianl>;and 53 percent women, ~5 .A&F was told to stop recruitln g from predominantly white fraternities and soronnes, It agreed to ,r..i:re25 full-time diversily:tec-ruite.rs who would seek new hires from his,toric.au'y Mack colleges, minority job fairs. and minority recruiting events- Michael leffrles issued a statement: "VVehave. and always have had, no tolerance fur dlscrimtnatian. We decided to settle this suit because we felt that a long, drawn-out dispute would, have been harmful to the company and distracting tomanagement"505 10ud Corley became A&f', new vice president: ,'}'f diversity. Due to his effom, A&F established a $)0[1,000 grant for scholarships fbr the United Negro College Fund; be-came a sponsor of the Organization of Chinese Americans' College Leadership SlUlPm.H:; became a spons.or

of the National Blade igt;:,]'r.~hlps for minority

MBA A3s0d<!tion;' and offered college juniors seeking retsil-

man ag~n),eITt areers 'th{(l'llgh Inroads, Incorpora ted. c

A.&FsFl!Itum
to face increased oompention, One of lts direct rivals. American Eagle 'Outfitters, was able to outperform Al&P .in rerms ofprofitahility

disregard of shoppers. They did not. talk to customers until (hey were within flve fee! of other." Some customers felt!Iltirnjc.iaieci, Under COO Singer, store greeterswere positioned in the 'entrance to each store and salespeople were posted in ·every section. A vice prts.i.

,"1l,n

dent of training

was hired to work

wtth

store staff, The

;:::;: cr-

Looking ahead, A.&F was likely

and assume the number one rank (comparedto A&Fs

third m.nk) amcng U.S. publicly traded IJ.ppa:relcompanies in 2:007 as listed by AppweJ Mag-urine. Newcomers
to the specialty apparel i1':ld~stry;a",well as large depart-

ment stores, tlought to imitate A&'Fs product offerings. M~tropatk, fOf example, a West Coast chain for 2(}- to 35·yc:ar"old shoppers. opened its fifteenth store In Atlanta, Georgia. Jrplanned to open a.>!additional 50 stores by 2M}. The retailer sold brand name casual. apparel! made by such. designers as True Rellglon and Joe's Jeans. It also tried to createa night dub-like atmosphere ill its stores wtth flar screen televlsionsplaylng musk videos and 8J lounge offering energy drinks and msgszlnes, Department stores.too, began to diverst!'}rihe.il: lines .' "by stocking merchandise from new suppliers and by p:m-

1'D:o!ingtheir

OWII

in- house labels, Oved Apparel launched

Company S.lin 2005 as "an Abercrombie for' department stores."? It began to sell distressed. denim, chinos, shorts, golf jackets, blazers, and graphic t-shirts at the
'wholesale level. ]t provided department stores.

number of employees was increased, and hours ofst,)re operations were extended. The added attention helped reduce shrinkage of merchandl . se."" NQneth.;:ies3,. p.rogress in customer service" may have been derailed by the departure o;fSinger (rpm the company, A&F also needed to be. ever v:igil.arn:t :regarding the needs and preferen .. o:f irs target, markets, Teenagers ces were perceived as being tickle. According to experts on the reactions of milleanials to pop culture, theyw:ei'e clime ult to influence because they tQoilght more independently and cflanged their minds more frequently than p.~O\lS generations, They would flnd. the "emphasis on the physieilirv of models" in A&F advertisements unappealing." The emerging trend toward ethical consumption W::l~,also something eo he watched. ):"OUI1_g: people began to purchase food. products and clothing with ·Fair Trade" labels They were committed,ror example ..to purchassng coffee that was organlcally grmm fronl suppliers who paid bean pickers higherwages than the golng rare, They bought T·5bjtl~ that were notmade in overseas sweatshops. The challenges for A&F €"f:cuti,,"-,:& ill 2007 and beyond were to anticipate competitor moves, to impwvce

"

8 CL .,

c::
:rl

..
OJ

1!l. if

"' o
rr

'" '"
ill

wJth

in-

store signage and imJ.ge:ry from its advertising campaign to complement its merchandise, Federated Department stores, whkboperated .!v1acy's and Bloomingdaleacreated an In-house label called, ''A:ro~i"kan Rag:' Its mer" chandise was sirnl_larin style to A&F's but priced mOte
moderately

Af> if sensing the encroachment

began

of <::ompet:i.ton:• .A&F
lts customer service,

an

unusual

effort to improve

In the past, brand representatives acted more like models than salespeople. They were known for their snobbish
."
-.--

customer service, and to maintain consumer loyalty. Th.ey needed to hrre talented top managers who could work well alongside CEO Jeffries ..These domestlc uuperatrves carne llii!l.critical time Eot theretailer, It was about to expand further into the European and Asian markets by op~ning sl.OJe,sn Italy;fnmce, Germany. Spain. i Denmark, Sweden, and J ap.atl..Pamela. Quintiliano, a Vffi Hambrecht retail analyst, gave the expansion plan a nod of approval: "Abercrombte is an incredibly strong brand nsme, and there's a hunger for American brands around the wodd."61

. .
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J. E. Pal.rniGriG D. Mcin. 2005, A&F hits Fifth Avenue !ray. ONR 3.5. & H0V8n;ib",' 1~" ti. I). Pe:'Jny. OO5.lhe .A.ba'{JI{]rnoi. r'epqrt. Nsw'r&k %: November 21, e. ~ . 2007. Th!C~\P.IXl,,,Jtqp 6'0, Ap~ M~. 4$(11), JI,I1y, 12,20'. M. Sooe~ & M. Norl1'li:·n(l, 2.Q[)6,Spediiity re1~il~. demonstrate resilience in fa@ or adwrsity. St¥lCl8!'d & Poor's ff'ldusrty Surveys: R~l:IJiIing:Spri/l~; January 12.. J. C"""rt.. 2007, StboNleF~ hsld bij';': in J~; ''e't~ile'"'' ",,,,ijk sales stJi;'N im,owt at iym~;1t ;0 ~ houoiOl9 rm'~I, lM:1JI Sr!fg!r ~'1Qt
.l!.JJgust 10, 1l.2.

i.
8.

Ibid.
A&F. "Q4:; J. $heb.". 2000. Oh, (:~md.! Kn~fl.[ H~r Gu..in~ ss ~, f.eb.r!JJa'y 26, 1. TifIw~

J. SM!eOOI'l. 2D()S, Abe~roffll)ie & Fitm olans mil', concept. Kl)lyM Ridder TIl'blil'18 Business- NiiiWS. N=mb~r 1:9. L 1.(1;, D. f'l1olir\ tMZ J.. Crew mi ss ion: B.'ng bast. ml bi!l~st, ~1iVD;
193(125). 11.

9.

J1,Jne

B. 2.

19~J, Hapid g<rowth in specialized shop trade Madison A"-&lu~ in me

S.

M. SQue<"$ J. Defoe. 200l Specialty ~tilIi!er$ experience mi;;ecl: &

resiJIis 1n200~ SUiIldlll>1'& $Mcm(jy. tw.gl£I.\ 2. Poo.r's IrroiiStrv $i.JfWYS,' fi;et.sNng'

12.

fo~",s The Centre, New York Times, Febru~',. \B, I'\e~ April :11. 2006. from ProQtle<s! Historical Newspap"rs d~~~oo~~. 1965, r1ew fulce fortashion et AMr'Cr'D,'rYoie & ntm. New\ilIk T'T"~S,
~ptemb~r 11, U. ReotriGVedApi'il 2'1. 2000. hom P,<;rO~~st Histoliml Nigw~pa~rli d\lt~i:ttJse.

~ .r:
2: .....
OJ

~_
14 E

)9W. ella,,-"' es wBiglled lor Aoorcrorrl'oil::. New WxkTIiIo@s. S':lpi"mber, 73. R,,~ri8\red Ap!il 2~, 2005. from Pr()OUfSst Hi,to/lea:!

37.
38,.

G. Kim, ;2C>nl, !iec'..!'i-m OoeSr1···t beicr.g TtirnJJ1(1 "s;~ess Ne./S, ANil .28, l B

Gr,

:'shil1:s. ~n""ht R.'dfjer

N"fW~llepff.'3 d.:itilba~e,
1976, Amf(]rombi~ rSl(lo:rts loss of >:1 million in li:5(;~1~'eer, Nr:w

s: ~

\trk Tirnils. Aug",:!'t 26. 68, f!;W:e'o'ed AD~I 21, 2006, irom f'roQue5t i-I'ts)<lrical N"w~~p~rs databese,
15.

J;. 4(),
4i. 4~_ 43.

D. D!;:Mate~, 2002, AIlQ1oC.OO'Ibic~, Fitdl pulls ehila,'",n'" :h<)o!i'. ~'nfQ~1 Ridder Tribuna 8uslfle£s News, May 23, 1. ,J. C~ggi~n~ •. ~O(l3, A~er~rCl<nbie & Fi1Qh <;Ir<;ps racv pL!Oli~o~iQf'l, f';,i-Jrili'f Tfibl/J.I~ B~~if",~sNews, De<.'errber 11, 1.
To TUJner, Hetailer A.oer,rornbie 0& frtcm ~"gers \'Ve.~t V"Q!ni~ t'e$';.t,t, Wilh ~ew T-shi:1:. ~O[)4, USA Gym"Mtics upset "'ill1 Abercr()rnbi~ & Filch, Tbe

"0

-'
'0

"' '" ".

j!

lv,

eo c:::
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§ c
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0>

R. H.~.\e'v, '1976" A.~rGr·ombie 8: fitcl'1 P"I LID lOr5.tile. ,vtIW'tbrt j"im~~, J~I\' 20, 1976. Fletli~ April 21 , :WOS,. from PrcQu@St Hi:<tQrb:al ~jewg~p~~ d<!·taba,,,. I, 8~rrfi;!jsh. 1976. Abercromoie & Fitch ;~ ~fl\k""p1l;;y ~t~, N~w 'tDrk Timo-s', AuguSI 7. 4? Rll'trieved April 21 , 2,Q(lo., trem prQOye.~t
gat;; sals f;,lief. ,'Mw rtrk Tlme-s, August 29, 41: Re1rieved Apr,il <:1, ~OOO,[,."m F7'aOuil~l: HiS1.O!'dca.1 NemPfllpels datebase, I. BarTriMll, 'i@2, NilVI' guiSll tOJ Abercrornbles, New'tfiJrio:Timf's, r~C\'em~et 8, D1_ Re'llti.,M N~=;p;!per;! ·d~16b<;$e. Arxil :21., 2000, from PfoQuElS;i Histonea' Higtowcal N.'",sp.lp"CS @t~lNJse. C. (). ~ra~er, Will, "S1\JE!y· Abs,of<l(nble'.

rnigh.

LMlsilingwrr A:Ys1, Oerobel S, D2.

2005, Sh.",e[j on she"" s, Tim ..s-P'COo/u" .. , M8)':;:;O,1. M. HIlI"1e:5, 20'05. "Girl colt" organizer:srneet 'Mth ,Abercrombie & F'r.:h ~0(;S """,rT-shirts. Knigill ftidoo.r Tribilf'le BusJiiess i'.J1:!WS. ~eDBmber 5. 1. 2'00S, Al;>;jrGrornoi§ I!'< l'itt..h Co. et So!n.; (If AI11~r,",il $~).)titi'e.$ Con~urne! C(>Tl'~e'eoce, ill" D\'sCWI)F!;> lM're, M"r;;i1 n r K. SI1O\.'<I!Ittef,1005, A&F readies $10 million expsnsion, B'lsmS.S Arst of ~s, MMlc.()lumb1Js.lli~olJrna";LCClf1"1/O;)IlJf11busi ~tQ"'''''200&'03tl4jstory5.I'T!I'i'iI, Mar"Oh 1'1. J. Sheb~", 2000,. 'Figh!i'l'ig 'l~k"8: Abercrombie ..,li,j5 t3xper1 to help it aomoo,t o;)wnt€!ffei1ing, Kriigjil Rj'o;I~r Jiibvn" SI,lS~~ Fljilru~r'r' 3, i. 2()OO,MrF lo.l( 31. J. $1>!3b1ln, 2004., A.befc.-ombie & :Fitch's wool bO'{W1ii MIps end "rnl.ll".;ilig" pra"tica. Kr'r@IH FI.J'ddG1·li'itI!J~OI 8usitl~ss W~\iVS, K_ S. $hal"tl.

17.

-~ .~
10.
."

1\4,
45.

{!;

is
~O. 21. 22.

.§

D, Cal'e~ 1900, After unbut!:ooing its image, 1.0 marl:!@i" MewIbrHimes, Seplember, F}, R. a·erner,. 2!l05·. Flip--ficps, tom j9an._~nd M'1I~3(),il(!

re~~i~ le<:j",nd Gomes·

~
-13
o, :::l

ccntrol,

8.us."=~~

46,

"

M. Cole, 2004. Facing a br".-e flew ''lC'Ild,. ~¥Ji, 40\ JI.'iy, 22. M. I?I9dgCl'r,i999, Abercrombie 1'< Fitch f.OC!J.!iP.S on Jiometi,.ali <>oliega

""'w;..

47
48.

~
u:

t
(Il

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audience, The PfaJ'nDeakf; JLJna 2.2. 25. ~3, 8~;ner, Flip,-flops. 24. 2005, Abercrombie CEO benefil,<; ~et1ie~r>t T~s. June i5. CEO benefits. ~5. WOO, ~r;;'rQliil)i(l

O!(d, !..Ds AIlgIl/es

49.

November 12, 1, D..Gel:xJl)'S, 2:llO'l. Inside Aoorcrornbie

:0
E

.6.

M, WilsC>!', 2000,

;1;:"

"PO!''' fac1{)t_ Cl?iJin StOOl

All!!. 82.

April, 78. ...

50.

.27.

fI, Derliznl2.-ois, 2000, Ihe man beh'nd Aberc~mbie &: FItch,

Silkirl, 1mp:I!www.;al()n.com/mwtlf€~W np.hunl, JarlUar~ 2<1. ...).~OO6!01 i'Mljeffrie.;lndex .

&. Film, Tn., Cql~mb(,s Di-.p"fch, May 24, 1 F. t;;, ShQw,alts<, 2001 , AbEfCl'OOlti>e & Filch: C;;mpus f8'fiects IDe true nature (I·f New Alt<> ny f,irrro:s cylMe, .s~:;in~~ f'lt$! Qf CQ1lil?ioo,.; s
http://OOIi.irt)bus,bi;;:joumllils,c()mlcolumoomtori,,,~011r:tilfl711ocual

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_iB~: Aro"tcrombi-e &. Fitch, f.OI!bes,wm, aeeessed May 1. 2.000, from h~p:tl\vww. rorbllS.oorril'bo.Wb.2C/re>o'ieMI,

jhtmfilid.,6833, J_ Veo-dQi1. 2()()4, Abercr'omi:Ce t.ergets ZO·.wme1hi!'lg$ witl'l w!f.,ehou.~Iy13 doc'", in Paramus, N ,J" Knigllt RidrJer TIi~ BtlSrrress Nows, SeIHerntl.; 17. 1 C. CGII!ins_2DDS, Status of U.S, or,,,no; ~Iir:>$ glOl;iall'l' amon>! 'teens, ThE' Chr'isiiJr"I Seieilce Monilar. Fel:;<mory 16, 1::;1_ J. Allin. 2003, TI,end selle-1, B~lTan~ 83, March :Jl, 21. P. 6. !;ri~~on. 20015, Companies locus on youthful intluence ior prosp.erlty, Knig/lt fMOe" Trio",,,,, 8rtsirleS'S: M:rw:!; •. Apri! 16. 1. J. .Abl~n. Tr~r:d setter; P. B. Eri(i.on, Cornpsnles {()I)uS 011 )'QuthfiJl
ill~uBnGe 101 ptO'Sl'erit'i_ 'he~enMrtill<" at 1)111 Me'lliil LvnCh R~tailil'lg Lel!lIers II< Hou~eoold . PIOd>JClS &. C0smetics ~er"'rM:>;l,M.&rm 15. 2005: aooesse(jhJril 22:. 2[)06. '~romh~:I/wM\I,~Oef.;;Qmb<e_c;;;,m. • 11urMt, 20M, Helllirer Aberaomtli.e 3; !=rr~h.;lI1gers iJ'J8stVirginia """,;dents

.html'?p!lgs=3. August 24 . S. Gr'8ilnhOU~i>. 20M, Going for !ne look, but Ms!;ing discn-mination, NoJw'1brl<,T1rMs, Jul)' l.j. 12. 52, 6. F'aynt.er, 20Q;l, Pon:t ""te me becsuse I' m bil~uilluf" K~tl.l~s City Pitch ~~r';: September 4, 53. 201)3, Ab8rcrombi@· & Fildl semes dress code c;s<;,. HOl,t$ro,n ChrGrlJ'r:J". j"ne 2:5. 2. '34, T.Tufner; 2Q(i3, C';rll;inn~'J .~itd·.a(ges.AM~G(()ml:i!e is< Fitdl 'wit" f~iirng to pay~nJm .." Knight RIdd,,' Tribune Business N"'!f'~ Jul" 9. i. 55. J. ShQ~n, 2006, AbBrarombie & Fit~; The l~08 of .:;hange. TN! Co(umbliS D!sparro. Jllly 31, F1. 151>:. s.. Greenhoosil. 200<1, A.bercrombiil; & Fitm bias case <s settled. NfN'i ~1_

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