The posh abercrombie and fitch Residence Club is offering a trial membership for those interested in trying out one of the club’s multi-million-dollar residences (and really who wouldn’t be?). The Trial Membership offers access to beach, mountain and golf destinations in idyllic vaction spots including the Turks & Caicos, Deer Valley and Kiawah Island.
As the Sherpa Report mentioned last month, this is actually a trend with several other clubs including Exclusive Resorts, Ultimate Escapes and Quintess also all offering trial memberships to tempt travelers during a time when people are cutting back on their vacationing.
A chastened Abercrombie & Fitch Co. said Friday it is actively lowering prices and trying to catch up with fashion trends such as dresses as the retailer reported a fiscal second-quarter loss and its third straight quarter of double-digit sales declines.The preppy teen retailer entered the recession determined to wait it out, maintaining its relatively high prices and investing internationally. But consumers have abandoned Abercrombie for lower-priced options such as Aeropostale Inc. and American Eagle Outfitters Inc.
In response, the company has cut jobs and shuttered its even higher-priced Ruehl chain aimed at 20- and 30-somethings.CEO Mike Jeffries said the company made a misstep with Ruehl.
“The biggest learning from Ruehl is that as a company, we don’t do ‘mature’ well,” Jeffries said in a conference call with investors.
Jeffries said the company has introduced lower prices and will lower prices even more in coming quarters.
“We continue to be confronted with very challenging conditions during the second quarter,” Jeffries said. “Consumer spending patterns domestically continue to be dictated by cost and value propositions, and this is clearly a headwind for our premium brands.”
In the quarter ended ended Aug. 1,
abercrombie’s loss totaled $26.7 million, or 30 cents per share. That compares with profit of $77.8 million, or 87 cents per share, a year ago.
Quarterly results included $24.4 million in charges for the
Rueh closing and store asset impairment charges. The company would not provide a per-share loss excluding the closure. However, Thomas Weisel Partners analyst Liz Dunn estimated the loss excluding one-time items would be about 8 cents per share.
Analysts forecast a loss of 7 cents per share. Analyst estimates typically exclude one-time items.
Sales dropped 23 percent to $648.5 million, but that topped analyst expectations of $646.5 million.
New Albany, Ohio-based Abercrombie & Fitch Co., which operates of namesake stores as well as abercrombie, its children’s apparel brand; surf-themed Hollister; and intimate apparel store Gilly Hicks, said sales in stores open at least one year, a key retail metric known as same-store sales, dropped 30 percent. Same-store sales fell 27 percent at namesake stores, 29 percent at abercrombie stores, 33 percent at Hollister and 31 percent at Ruehl.
Known for preppy offerings such as jeans and polo shirts, Abercrombie said it is working to improve its fashion offerings, particulary for women. Dresses and belts have been selling well.
“We are always pushing ourselves … but have admittedly missed some of the fashion opportunities that drove the business in the spring,” Jefferies said.
Prices are also in flux. The company said the average prices will be lower in the third quarter and upcoming quarters than the second quarter.
“We are planning to deliver greater reductions in (average unit retail price) for the fall season, but we’ll continue to review pricing on an ongoing basis,” Jefferies said.
The company slashed marketing, general and administrative costs during the quarter, down 19 percent to $88.7 million from $109 million last year.
The closing of Ruehl, its store focused on handbags and other accessories and aimed at older shoppers, should be complete by the end of the fiscal year.
Jeffries said the company’s Gilly Hicks intimate apparel brand, which was skewing older, will now be aimed at the company’s 20-year-old target market.
“We are young, we’re sexy, we’re controversial at times,” Jeffries said. “That’s what we know how to do, and that’s the business that we own here and are comfortable that we can around the world.”
Abercrombie had “pretty decent results, better than we expected,” said Keybanc Capital Markets analyst Ed Yruma. “They’re getting traction on changes in their promotional strategy, including being more focused on denim and on opening price points.”
Shares rose 99 cents, or 3 percent, to $33.95 during morning trading.
Most residences are 4,000 square feet with four bedrooms and at least four bathrooms providing a luxurious home away from home for a gathering of family and friends to celebrate a special event or just gather for some much-needed relaxation. The Trial Membership provides access to the full range of Abercrombie & Kent Residence Club services including a dedicated Global Experience Manager to orchestrate every aspect of your stay, greeting at the airport and private transportation to the residence, pre-arrival grocery shopping, daily housekeeping and the local knowledge and activity-planning assistance of a Destination Host.
For a limited time, Trial Membership in the Abercrombie & Kent Residence Club is available for $1,400 per night. Reservations can be made for a minimum of three and a maximum of seven nights and can be made from two to 180 days in advance of travel date but must be made by September 30, 2009. More details on the club website.
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Wednesday, August 26th, 2009Abercrombie is spam
Saturday, August 22nd, 2009 Joe Abercrombie describes his work as “unheroic fantasy”, a beautifully turned phrase which it’s hard to better if you need to quickly sum up Best Served Cold. Put simply, there are no gallant, selfless or likeable characters in Abercombie’s first standalone novel – yet somehow, you find yourself rooting for many of them. The basic plot, as the title clearly suggests, is a classic quest for revenge, but it’s in the execution, with a gleeful disregard for the ever-growing body count, and in the flawed characters, that Abercrombie’s talent shines.
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Riam Dean has a prosthetic arm that attaches at the elbow, and she typically wears a sweater to cover the prosthetic. While A&F employees are required to wear jeans and a polo shirt, she was given permission to wear a white cardigan while working on the floor. But only a few days after she started work, the store was paid a visit by the “visual team.” This group’s purpose is to sure the shop and its staff look up to code. One of the members of the team demanded she take off the cardigan, but she insisted she had permission to wear it. Nevertheless, she was asked by management to continue her employment in the stockroom, far out of the public eye. Management claimed that she “violated the ‘Look Policy,” which is an imperative part of working for such a prestigious clothing outlet. As if she could help the fact that she is, unfortunately, missing an arm. Totally her fault, I suppose. The nerve. Pssh.
A&F has never been a stranger to discrimination suits; one was recently settled in the US for discrimination during the hiring process in that they would allegedly only hire “young and beautiful” men and women to work in their stores.
Abercrombie and Fitch recently announced it will pull the plug on its RUEHL chain, a concept with 29 stores in high-profile malls across the country that targeted well-heeled consumers in their 20s. Abercrombie blamed “the severe economic downturn” for sinking the stores, which launched in 2004, generating an operating loss of $58 million during the company’s prior fiscal year.
But maybe it’s not just the economy’s fault in this case. REUHL is just another example long line of concepts rolled out by established chains over the last few years that were either closed or abandoned. The lesson here is that some of these retailers might be better off sticking to their core concepts instead of pushing ever more demographic-specific options out to the consumer.
Shivers is the only character in Best Served Cold making a conscious effort to be a better person. The trouble, as he discovers, is that death follows Monza Murcatto around like a faithful companion – and one revenge scheme after another comes to define the word ‘overkill’. Along the way, there are plenty of double-crosses and revelations that give us opportunities to re-evaluate our initial impressions of the characters, not least Monza’s deceased brother, and the action shifts from one city to another, all in the midst of the ongoing civil war in which Monza made her name as a mercenary.
Best Served Cold exhibits abercrombie’s trademark black humour in spades, and the standalone novel form provides him with ample opportunity to show off his plotting skills – but don’t let the glibness fool you, the author and his characters do recognise the terrible nature of the violence being described, and don’t try to downplay the human cost. It’s a testament to Abercrombie’s skill as a storyteller that he can, over the course of your acquaintance with them, make you care about generals, assassins, cut-throats, barbarians, poisoners and (worst of all?) politicians so much, and in spite of their dubious deeds. Best Served cold is definitely this author’s best work to date, and I would be very happy to see him continue in this vein when he returns to the wonderful world he has created.
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