DUBLIN, IRELAND – September 5, 2016: A metal plaque is attached to the stone facade of an … [+]
Robert Alexander 2016
Abercrombie & Fitch Co has joined the list of retail businesses to shut down their stores in response to the continued spread of the Coronavirus, COVID-19.
The company will be closing all stores, including Hollister branded stores, in North America starting March 15 and in Europe on March 16. Stores in APAC will remain open. It will also continue to sell online. The closures are currently scheduled to last two weeks until March 28.
Abercrombie & Fitch CEO Fran Horowitz said in a statement: “The decision to close all our stores outside of the APAC region has been done with a focus on the wellbeing of our associates, our customers, our partners, and our communities, and it is in keeping with our commitment to being a responsible corporate citizen. Based on the significant investments we have made over the past several years in our people and our IT infrastructure, we have a robust digital business. We believe that our current capabilities will allow us to continue to fulfil our customers’ needs during this unprecedented period of uncertainty. All store associates will continue to receive pay in alignment with business as usual operations.”
The company is also withdrawing its first quarter and annual outlook issued earlier in March. Whilst they expect material adverse impacts, they will not be providing an updated outlook at this time.
The move comes after retailers like Nike, Apple, Patagonia and Anthropologie announced they would be temporarily closing all North American and European stores as well.
Abercrombie & Fitch has been undergoing an aggressive transformation program under the leadership of Horowitz that has drawn plaudits from retail insiders and positive results as showcased by an 8% increase in like for like store sales for the fourth quarter that ended February 1, marking its best performance since 2015. Whilst an iconic US brand, the company generates 30% of its revenue internationally.