Reviews pertaining to Hollister are nearly excellent, from reading online critiques from client purchases to actually talking to friends. Yet, no other chain knows more about underperformance in this sector than Aeropostale (NYSE: ARO ) which has seen its shares tumble over hollister outlet 60% year-to-date, and which has been a popular rival of Abercrombie & Fitch for years.
While Abercrombie & Fitch and Aeropostale don't run identical retail businesses, each is similar enough to use Aeropostale as a barometer to what Abercrombie & Fitch's future might soon look like as both a stock and a company.
This is because Aeropostale's collapse began in 2010 - one year prior to the last year Abercrombie & Fitch saw positive same-store sales - and the last year Aeropostale saw double-digit same-store sales.
Making matters worse is the huge effort and investment Abercrombie & Fitch as a company is making to remodel Hollister stores Most recently, Abercrombie & Fitch brought in Fran Horowitz to be the new president of the Hollister brand.
I see a possibility in the future where both Hollister and Abercrombie & Fitch merchandise is sold within the same store in sort of a brick & mortar consolidation plan hollister shorts since the company has stated in previous earnings announcements that the leases are coming to an end on many physical store locations across both brands.
absentpolitics334 Community Member |
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