Abercrombie & Fitch Pest Analysis

813 Words Nov 22nd, 2012 4 Pages
Abercrombie & Fitch Executive Brief of External Environment From 2011 Annual Report

Company Profile: Specialty in clothing retailer; operate store and direct to consumer operations; under Abercrombie & Fitch Abercrombie kids, Gilly Hicks, and Hollister brands; 1045 store in North America, Europe, and Asia. $3.5B net sales; 85,000 associates; HQ: New Albany, OH.

PESTLDG Analysis

Political/ legal

Donation to lobbying of $120,000, issue health care reform. Abercrombie & Fitch does not give a many contributions to lobbying. This could be because they will like something change in the Obama Health care law. Abercrombie & Fitch is no estranger to legal problem. In 2002 has two pulled a t-shirt that said “ Wong
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By closing unprofitable locations, Abercrombie hopes to elevate its brand image as well as its profit margins. The on e edgy retail has lost third of its market value in the past year as its sales in Europe and U.S. While Abercrombie blames the economy, retail sales in 2011 were $4.7 trillion, which represents an 8% increase over 2010 total retail sales (including food service and automotive). The 2011 increase was the largest year-over-year increase since 1999, indicating that economic recovery is well underway and that the future of the U.S. economy is expansion, not recession. This is a good sign that Abercrombie & Fitch is in trouble, even do the economy is getting better people are not willing to pay $70 for a pair of jeans when they can purchased anywhere else for $40. As a result of this people has move on. Abercrombie & Fitch’s net sales for the thirteen weeks ended July 28, 2012 increased 4% to $951.4 million from $916.8 million for the thirteen weeks ended July 30, 2011. Total U.S. sales, including direct-to-consumer sales, decreased 5% to $648.0 million. The lack of sales plus the legal problem that Abercrombie had and has in the last couple of years is hurting the company. Unemployment rate is decreasing steadily and it is forecast to keep decreasing. This will give Abercrombie & Fitch the chance to