After surviving years of controversy and sales declines, Abercrombie & Fitch has undergone a dramatic transformation, redefining its brand and reviving its business.
Now, the company is ready to make another huge step forward.
Abercrombie & Fitch is making a massive global push by launching its Abercrombie Kids brand in department stores worldwide through a series of new licensing partnerships.
💵💰 Don't miss the move: Subscribe to TheStreet's free daily newsletter 💵💰
Retailers that will now carry the Abercrombie Kids brand
- Nordstrom (JWN)
- Bloomingdale’s
- Macy’s (M)
- DICK’S Sporting Goods (DKS)
- Galeries Lafayette
- KadeWe
- El Corte Inglés.
“This global expansion allows us to meet customers where they are and continue building meaningful connections with families around the world. We’re excited to see Abercrombie Kids reach new markets, grow with our customers and bring even more kids into the brand experience,” said the company in a press release.
Related: Macy’s brings in new fashion partner for kids and parents
These partnerships open a new distribution channel for Abercrombie & Fitch (ANF) , giving the company access to lower wholesale costs, more efficient operations, and significantly broader brand exposure.
Abercrombie & Fitch will not be increasing prices amid tariff pressures
This latest move comes as many retailers have been concerned with rising manufacturing expenses due to the newly imposed U.S. tariffs on imported goods.
The tariffs threaten to disrupt the supply chain and increase costs, which are pressures that are especially hard on smaller retail companies like Abercrombie & Fitch.
More Retail News:
- Amazon's new deal with Hertz taps into $1 trillion used car market
- Claire's gets a bankruptcy lifeline, stops store closures
- The Container Store shares harsh message on its stores
Big-box retailers, like Abercrombie & Fitch's new partners, are better equipped to navigate such challenges. Due to their large-scale operations, diversified suppliers, and bulk purchasing power, they can absorb higher import costs and maintain competitive pricing.
On the other hand, Abercrombie & Fitch's smaller scale makes its costs much higher, limiting its flexibility amid market disruptions.
Despite these obstacles, Abercrombie & Fitch has expressed confidence in its ability to navigate the market. The company stated it has no plans to raise prices and is focused on operational efficiency.
Abercrombie & Fitch's strategic moves aim for long-term growth despite declines in its namesake brand
In the latest earnings call, Abercrombie & Fitch CEO Fran Horowitz said that the company remains “open and agile” with its inventory and marketing spend to ensure that it can best align its product investments with selling trends.
“Our global supply chain and sourcing teams are working hard to drive efficiency across the supply base through discussions with our sourcing partners and by making strategic geographic changes to our buys,” Horowitz said earlier this year, at the company's first quarter earnings call on May 29, 2025.
In the first quarter of fiscal 2025, Abercrombie & Fitch reported record net sales of $1.1 billion, an 8% increase from last year, and same-store sales up 4%.
Although this might seem like the company's efforts are working in its favor, this growth was driven by its Hollister brand, which saw a 22% increase in sales.
Instead, the Abercrombie brand experienced opposite results, as its sales declined 4% year over year, and same-store sales dropped 10%.
Related: Abercrombie is coming for Gen Z with past mistakes in the rearview
Still, the company insists the Abercrombie brand remains resilient and is well-positioned for future growth.
With these global licensing partnerships and strategic supply chain management, Abercrombie & Fitch is putting itself on the right track to reaching long-term sustainability despite economic uncertainty and increased competition in an ever-evolving retail market.
Related: Veteran fund manager unveils eye-popping S&P 500 forecast
