Abercrombie & Fitch: from American’s most hated company to Gen Z’s favorite brand
ANOTHER DAY—ANOTHER STARTUP STORY
Hey founders,
Welcome to another week of startup story!
If you’re new here, I’m Gracie Van, the writer behind this newsletter, on the mission to build a startup community for young and early-stage startup founders. I’m here to help founders grow through startup resources and networks, and get inspired by startup success stories.
This week’s story will be a little bit different.
We’re not discussing a startup story like others—we’re discussing the story of a rebrand that completely transformed a company.
This isn’t just any story; it’s about how a brand can go from rock bottom to a top choice by evolving with its customers.
This is the story of Abercrombie & Fitch …
Abercrombie & Fitch is a well-known brand in the U.S that you probably recognize.
But did you know A&F once being America’s most hated brand?
Their CEO openly insulted millions of customers.
Sales fell for 11 straight quarters.
220 stores closed.
Profits crashed 77%.
Then ONE change made them surprisingly become Gen Z's favorite brand nowadays.
Let’s dive into this dramatic transformation and the leadership lessons it reveals for modern brands.
Abercrombie’s Early 2000s Vision: Exclusivity Over Everything
In the early 2000s, A&F had one mission: create the most exclusive brand in fashion.
Their then-CEO, Mike Jeffries, embodied this mission, famously stating:
"We go after the cool kids. The attractive all-American kid with a lot of friends."
To make this vision a reality, A&F cultivated an image that celebrated exclusivity and elitism.
Their message was unmistakable:
“Look Policy”: Only “good-looking” people were hired and represented the brand.
In-Store Experience: Dark, club-like stores pumped with overpowering cologne and loud music created an intense atmosphere.
Their message, both spoken and implied, was that A&F clothes were not for everyone.
Jeffries bluntly put it:
"A lot of people don’t belong in our clothes, and they can’t belong."
The Downfall Begins
In the late 2000s, the world began to change, and A&F’s exclusivity message started to feel outdated and out of touch.
A few factors accelerated this shift:
Economic Recession (2008): The luxury price tag on Abercrombie’s clothes felt excessive to a generation facing financial uncertainty.
Fast Fashion Emerges: Affordable, trendy clothes from brands like H&M and Zara drew customers away from Abercrombie’s logo-heavy styles.
Social Media & Authenticity: As social media took off, consumers began valuing transparency and authenticity over exclusivity.
A&F struggled to keep up, and the impact was dramatic:
Their stock plummeted 75% by 2011.
Profits dropped 77% by 2013.
Sales declined for 11 consecutive quarters between 2012 and 2014.
Lawsuits alleging discrimination in hiring practices also surfaced, painting Abercrombie as exclusionary and outdated.
The brand, once popular, became widely criticized
The label “America’s Most Hated Retailer” stuck.
The Turnaround Begins: A New CEO and a New Direction
When CEO Mike Jeffries stepped down in 2014, A&F was left without a clear leader for three years.
In 2017, Fran Horowitz took the helm.
Her approach? Overhaul the brand from the ground up, with a new focus on inclusion and authenticity.
Horowitz made one essential realization:
Abercrombie’s original customers had grown up.
Now young professionals, these former A&F shoppers had careers, disposable income, and different needs—A&F had to grow up, too.
The Key Changes That Saved Abercrombie
Horowitz made several decisive changes that transformed A&F from a symbol of exclusivity to a brand for everyone:
Moved Away from Logos: The iconic logo-heavy look was replaced with sleek, subtle designs that appealed to a more mature customer.
Expanded Size Range: Inclusivity became a focus, with a broader size range for a wider customer base.
Revamped Stores: Out went the dark, cologne-filled rooms. Abercrombie stores were remodeled to be open, inviting spaces inspired by an upscale “getaway.” They also closed 23% of their store base, slashing occupancy costs by 31%.
Prioritized Digital Sales: A&F embraced digital sales, which grew to make up 46% of their revenue. As a result, store productivity soared by 18% compared to 2019. By investing in online channels, A&F could connect with customers on their own terms.
Horowitz didn’t just transform the stores or the clothes—she reinvented the Abercrombie feeling.
Gone was the “cool kids only” message, replaced with one of quiet confidence, accessibility, and real value.
The Power of Authenticity in Modern Branding
Abercrombie’s story shows that today’s brands can’t rely on exclusivity to drive growth.
In a world where consumers value real, human connections, brands must find ways to be more transparent, relatable, and authentic.
This transformation has helped A&F thrive with a new generation of customers who prioritize brand values as much as brand style.
Lessons for Today’s Founders
As A&F’s story demonstrates, building a lasting brand means aligning with what matters to your audience today.
Here are 3 takeaways every founder should keep in mind:
Listen and Adapt: Don’t assume your audience will remain the same. A&F’s success came from recognizing that their customers had grown up—and the brand needed to as well.
Be Inclusive: Modern consumers expect brands to be accessible to all. Brands like A&F found that embracing inclusivity, both in style and messaging, makes them more relevant.
Prioritize Authenticity: Today’s most successful brands—think Kylie Cosmetics or Emma Chamberlain’s coffee line—win because they connect with customers on a personal, authentic level.
Abercrombie & Fitch went from exclusion to inclusion and gained a loyal following in the process.
Their story reminds us that when a brand reinvents itself with authenticity, it can resonate in new, unexpected ways—even with Gen Z.
So, if you’re a founder or building your brand, remember: Your personality is your brand.
Share your story, build real connections, and your customers will find you.
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THANKS FOR READING!
- What A Startup