Why Abercrombie & Fitch’s Stock Exploded Faster Than Nvidia’s | WSJ Case Study
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- Опубліковано 22 лип 2024
- Many thought Abercrombie & Fitch was over after years of declining sales and fast fashion competition from companies. But now, the retail company is one of the fastest growing stocks, beating out Nvidia in growth in the year dominated by AI.
WSJ breaks down Abercrombie’s turn-around playbook used to rebrand the retailer in a challenging and declining market.
Chapters:
0:00 Abercrombie’s fall
0:55 New leadership and tactics
2:38 Transformation and growth
7:28 Industry impacts
#Abercrombie #Retail #WSJ
Why Costco and Sam’s Club aisles are full of Gen Z shoppers: on.wsj.com/4bQd6YN
I see that Wall Street Journal advertise on UA-camr like serpentza, who upload hate and racist video about China and Chinese. The owner of the channel is Winston Sterzel, wanted by the Chinese police, google his name.
It is not very clever done. I have reported you to The Ministry of Commerce (MOFCOM). As an advertiser on youtube you can choose whom to sponsor. I send you an email with screenshot of your commercial. Try to think WSJ.
Good quality clothes WITHOUT Logos that’s the key 😭stop putting logos on everything
exactly, just don't make people look like walking billboards. Problem solved.
This is why Uniqlo is such a good brand, good quality shirts that are soft and last a while. Plus their shirts are reasonably priced.
ekkovision is a fire brand btw, their blank tees are amazing
A&F we’re about quality and experience now the quality is no way near as good and there’s no A&F experience anymore going to A&F stores were so fun and cool
There is nothing wrong with logos if they are subtle.
Most of the voices we hear are from A&F representatives directly, the criticism added together is mere seconds, none of the points A&F make are argued. This could honestly be an ad for this company.
They should stop with these one sided success stories. No well formulated argument in the whole 10 minute clip..
I think that has a lot to do with staying on point with the title of the video "Why Abercrombie & Fitch’s Stock Exploded Faster Than Nvidia’s"
Good catch. I thought they'd be talking about the what happened 10 years ago, it what they're doing now.
They really take us for idiots. 💀
It probably was. I used to really enjoy this content from CNBC and WJS. But when they do these brand pieces like this, it sometimes feels like when companies pay morning shows in local tv or mainstream ones to go on and talk about their product. You see it a lot with random supplement companies. It sort of gives the consumer the idea that it’s not an ad, but it’s really just an ad.
That $7 fee for "each" return of clothe you don't like definitely helps with the margin.
i don't think i've ever paid to return things? Isn't that zara?
@@wizirbyman From their website. Got one thing wrong which is not for each clothes but per return order.
Submit your Return or Exchange Online
1. Click here to get started.
2. So that we can track your return with you, use our return service by selecting our preferred carrier and use the return label we email you, or the pre-printed return label from your order invoice.
- Please note, for using this service, a fee of $7 will be deducted from your refund. The return service helps confirm the status of your return and track its delivery progress for added security. Exchanges are free of charge.
@@wizirbyman maybe not noticed, just decreased payback
They solved the GAP problem 😂
wdym by gap ?
@@bullymaguire2335 the GAP bro.
@@bullymaguire2335there’s a double meaning to this comment: the GAP (store), and the gap on woman’s jeans.
What gap?
this irony here is that if Abercrombie reverted back to their original y2k era line they'd corner the gen z market.
Wouldn't they just lose to Shein or some other TikTok sensation there?
@@BuggiEU how young do you think gen z are ? 😭
@@TheDarkrebel131 the are very old, let me tell you that.
So what did they decide to do with Hollister to make it different?
Just hearing about these two for the first time. How about short term say about 6 months to a year, if one wanted to start investing, do you think they would be good options to start with?
Nah. NVDA would be a better buy for that
I'd recommend you get yourself an F.A if you really want to get in instead of starting with guesses. They're not half as expensive as you think and know the market better. Experimenting with UA-cam-based suggestions may not be the best for you. I know this from experience and as somebody who has made real money off stocks. Goodluck.
hi, please what are the steps for getting one?? like a really good one
You should start by looking out for affordable ones from known firms with good track records... You should also make sure the person is licensed... Personally, I use Kelly Marie Matwick. She's good and you could also look her up...
Apple is a much safer bet for that
As a teenager, I used to hate walking by A&F and Hollister because they used to spray the store with awful cologne/perfume that was so strong, it was gross. Never thought I'd be back into these stores in my 30s.
Dou
WSJ is putting an free ad for AF
may be is not free...
Ad, yes. But I doubt it was for free.
Where’s the nvidia/stock discussion please 😭
Dropping the Nvidia name was just click bait
7:57 is the comparison, the whole video is the discussion of Abercrombie's growth.
Nvidia still has a competitive advantage with their products and will continue to be an industry leader. I mean the barriers to entry for chips is significantly higher than fashion. Abercrombie will need this growth for couple of years to be at the same level at Nvidia stock growth. But it is true, in one year, they surpassed Nvidia stock growth
How can a clothing company be compared to chip maker? Maybe LVMH ?
it is click farming mostly. you can see older video get new title and thumbnail that follow current trend. algorithm gaming
is it a PR video cooperated with A&F?
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7:56 As a heavy Nvidia investor, I can clearly say that it is misleading. They selectively set August 2022 as the starting point at which was exactly Abercrombie's low. Nvidia's low was in October 2022 and it started its rally in January 2023. Measuring in a longer term like 3 years or more and in a much shorter term like 6 months, Nvidia is superior.
Gen z isn’t in their teens we’re in our twenties and we like Abercrombie 😭
So to clarify rebranding meaning retail cashier sales logo advertisement. In relating topic to standard renovation and brokerage purchase of sale ( the purchase of the merchandise and sale of the product). You would have to rebrand to relate to the older marketing crowd being a standard because this is a claim for example investment trade/model.
Well, the teenagers grew up, became adults with lots of $$$ in their pockets and able to buy a brand they knew from before. Genius. No new to the strategy, just deeper pockets from the working adult consumer.
Well just cuz you use to buy JNCO jeans doesn't mean you will again without some convincing.
Im not so sure it’s that easy. I bought AF in HS, but when I was in undergrad, no one wanted to be caught dead in AF apparel. That stuck with me, and I would have been hesitant to buy from them again absent this resurgence.
After talking about denim jeans, I Could’ve sworn the narrator said “and then the Pantdemic happened…”
Great agile analysis for marketing to understand customer requirements.
I moved from Tampa to Santa Clara a few months ago and I’m thinking of purchasing a single family home there, but with real estate prices currently through the roof, is it still a good idea to buy a home or should I invest in stocks for now and just wait for a housing market correction? Looks like NVDA, TSM and AMD and AVGO are strong buys this week.
it’s a personal decision, but according to Forbes, housing activities will remain stagnant for the most part of the year, so maybe hold off a little.
well you could put a downpayment on a home and as well diversify as much as you can into Ai, energy and big pharm. stocks like Pfizer and JnJ, ASML, MLM and S&P 500 ETFs. I’d suggest you go with a managed portfolio, but even those don’t perform so well, so it’s best you reach out to a proper fiduciary to guide you, that’s what works for my spouse and I making a whooping $738k in Q4 last year
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I agreed that this is just another advertising rather than the real situation of A&F, also the fact doesn't lie, I don't see A&F on or off line, the store itself is mostly empty when I pass by. Honestly, personally, I don't consider this brand when I go shopping and I do shop a lot........lol
I buy there, my wife buys there, and the store near us is always busy. The stuff I’ve gotten there has been incredible quality. I’m a millenial and hated a&f when I was a teen, but it’s changed
I always wanted to look like an a&f model
No one will ever make me hate Abercrombie. I love it ❤
Tacky
Hate it now though, the "reinvention" and fat/rainbow cheapification of the brand destroyed the most hot clothing of the era!
4:25 what is that handle spinning thing? it looks so cool
Loved A&F during the early 2000’s, love them even more now!!!!
Back in 2000s, i was so proud wearing AF, and even more proud holding the AF paper bag. The legendary muscle-fit shirts are well designed and GREAT quality. If u bring back those products, i would definitely buy them again with no hesitation.
The current marketing idea makes AF cheap and not stand out.
They have good clothing but it’s expensive
You're free to buy the disposable clothes that other brands are selling.
You get what you pay for.
Other brands are expensive with bad clothing
8:46 literally 10 seconds coverage in a overall positive tone 10 min video.
Yup. It's impressive WSJ got access to CEO, CFO and CTO for this, but this video is so one-sided it's hardly journalism. It's so glowing I wouldn't be surprised if Abecrombie appends it to their annual report or something.
It makes sense now why a clothing company did a 10x in one year.
@6:30 'so it knows which customer to target with which deal' ....you mean different people have access to different prices?
Haven't bought any A&F products in more than a decade but I still love the pieces I previously bought. The pieces I currently own are still in good condition so I would say that A&F quality is good. I stopped buying when designs and quality went downhill (and of course, the problematic previous CEO). I wonder what changed... I'll probably go check it out.
Amusing hearing the CEO being coy about their product quality / "sourcing". In other words, they don't want to name the specific Chinese factory making products for them, a) so the customers don't realise it's made in China; and b) so that their competitors don't place orders from the same factory.
...make Hollister the Gen z brand?
Why isn’t anyone talking about the thumbnail
My Grandma wear A&F. This is what their target consumer
Really this is the first time I have heard about this brand😮
Literally you've been under the rock and you haven't set foot in a mall either
You're kidding right?
@@madi4481 you re 100% right, I hate shopping always buy online.
Always loved Abercrombie Brand because of their quality and comforts.
I came for the thumbnail hahaha
Bobble. Big trouble ahead
It must be the one bottle of Fierce cologne I bought from them
As a loyal customer of A&F around 2019 they sold you the same expensive t-shirts but now it wasn’t the same good quality as in 2003 - 2009. That was not cool. The customers will return? We’ll see.
W video title with the Nvidia reference 😂
I missed RUEHL brand. very high quality items.
That CEO guy is only 8 plastic surgeries away from perfection.
Makes me wonder why Brookes Bro hasn't done anything similar, like online?
Brookes is in the wrong culture right now but in about 8 to 10 years they will find them self in a culture that is more favourable to their brand.
@@Art-is-craft it could be right now if they made quality clothes with good fit an styling to that of vintage BB or Ralph Lauren
@@darksunrise37
If they go down that route they will not be in a good situation to deal with the change coming down the line.
Boy I tell you what.. WSJ and the hedge fund bros are really hyping up Abercrombie and Fitch. I'm an avid shopper and I recently checked it out, the styles were MEH at best, prices were noticeably higher than other similar stores (for similar items too), and the collection was pretty subpar imho.
To gain profit, they used more expensive material. To gain more sales, they start to solve real problems!
Seems to be a brilliant CEO now.
Okay so basically Uniqlo in the western market.
Didn't most companies realize they need _more_ stock after the pandemic?
without watching the video i wouldve thought it was because of bayashi
Remember when The Gap and Banana Republic carried decent clothes?
She sounds brilliant, their new CEO.
Honest question here, do they just stole J Crew's market but they are just cheaper and probably with better analytics?
This seems like just another paid ad, but longer.
I'm never buying Abercrombie & Fitch ever again and since they are now targeting younger ladies for sales then I have no business with them
They forgot that a 2 trillion company needs 2 trillion to double while a 4.5 billion company only needs 4.5 billion to double
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Impressive comeback, Abercrombie & Fitch! 🚀
7 Dollar return fee pads the bottom line!
Aaron Levine’s design influence on the brand is subtly profound.
Their quality was good about 2 years ago. Their margin got hammered and now its suboptimal so their claim that they are good quality is outdated and untruthful
Didn't know they had a stock
As i side note: Gen Z thinks any generation is uncool. They are just a very frustrated generation, very narcissistic and judgy. Gen Alpha on the other hand embraces fully the Millenial style.
You know people and the whole economy is absolutely cooked when "making decent products" becomes a "new" strategy...
If Kodak stock price is a beautiful mistake, what should we do? Personal opinions, not investment advice🎉
Should change their name to old skool👍👍💪💪
The models of air heads…
they're basically morphing to uniqlo then
Abercrombie and UniQlo are different stylistically. I wear both.
It’s because of the name
This kind of rear view mirror analysis is so typical, after a stock has already made the run up.
The old Abercrombie was way cooler
In other words, Abercrombie took customers from stores like Express and ate their lunch.
You changed the thumbnail! OK let's see how many more clicks you get :)
I feel like the quality is going back down though...
Hello people
Now they copy aime leon dore
It’s still fast fashion. Please shop responsibly and think about environmental impact.
At 80-150 $ per item of clothing, I don't think people who buy A&F intend to buy it for the trend then dump it out.
I still regularly wear a holisster shirt I brought 12 years. Not fast fashion.
@@MminaMaclang they have lower price items too!
Ok, what are the most affordable non-fast fashion brands you recommend instead?
@@BuggiEU didn’t say you can’t shop at one. I said shop responsibly.
I never even knew Abercrombie used to target teens, I thought it was always for mature adults, just look at the name , it doesn’t scream youthful.
1:35 and Ruehl No.925 was the best out of the three. Hit the like if you remember Ruehl!
What was the key to such a fast growth?
The still ongoing stock market bubble of the 2020s
Never buy a rising stock, so you won’t become a profit for a seller
TLDR: Inclusive sizing, higher quality fabric and materials, no branding, and women creating impact.
abercrombie just ride the old money style wave n be the best at it
Wait, Gen Zee think I’m uncool? Since when!?
Booo, bring back the old Hollister.
A store that doesn't care about trends would be nice. Not everyone is trendy and they want clothes too
It's called Walmart
They I wish stores were kind of like Crumbl. So we could know what was coming and win, and we could vote for our most liked clothes. Because we do grow but sometimes it’s just not in the store like I have a pair of pants that I love so much that I’ve gotten from a long time ago, but they don’t fit me anymore because I’m not 15. They don’t even sell them anymore but having your customers go and vote for what they like what they would love to see again would help you understand what is popular and what isn’t
If you’re not transparent about your materials, sourcing, factories, and supply chain, it’s questionable and likely unethical practices occurring
One question please! Is NVIDIA a safe buy to outperform the market this year? I'm tired of these new buys every week, just to make up some assets with low percentage on my $236k portfolio and try to keep everything around 10%.
Yes! but still make your own research. And I would avoid the index funds, mutual funds, or specific stocks for the time being. The 5% fixed incomes are the safest bet for now. Or hire/ work with a good market strategist. You’re safer that way
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Crazyyyy young generation became more conscious about there consumption and it collapsed the entire A&F empire 😂
I'm not good at brands and in general I'm not a big fan of expensive clothes, but I remember scandal with A&F, that happened several years ago ) by the way, their guys used sexiness for promotion of this product and I liked it ) it looked really hot, modern and creative )
Honestly it just the new J Crew… nothing revolutionary just vintage J Crew
From globalization to localization of the 2020s. Saying that I am wondering why Chinese bubble tea or boba in India was not introduced until the market saturated in south east asia. It’s taken off now. I guess Asian fast food chains can take off as well. But they will be modified to suit the palate. That’s something Americans weren’t willing to do for a long while
Are they gonna bring back the 2002 tshirts making fun of Asians?
I hope they move to a more sustainable business.
A&F garments are absolutely are of not high quality materials.
what with the thumbnail bait with sexy guys?
LOL. I’ve never returned.
They finally admitted that their quality sucked in the past
I’m missing the old A&F inventory with the colorful tees and hoodies. It’s soooooo boring today like an H&M store.