Abercrombie & Fitch 2003 Annual Report Download - page 9

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Abercrombie &Fitch
7
our brand image through a variety of marketing and advertising vehicles. While our primary
focus continues to be in-store, we have added lifestyle only direct mail and national magazine
lifestyle advertising for the Abercrombie & Fitch brand. Our advertising will be young, fun, sexy
and continue to represent aspirational college life.
We continued to grow our business rapidly in 2003, increasing square footage by 15%. We
ended the year with 700 stores across all three brands. With 172 stores open at the end of fiscal
2003, and 600 to 800 store potential, Hollister Co. remains our primary growth vehicle. Hollister
achieved a 7% comp store increase in fiscal 2003 and we expect Hollister to have another strong
year in fiscal 2004.
A major reason we have sustained consistent earnings growth has been our ability to develop
new lifestyle brands. Last year we announced development of a fourth lifestyle brand to support
future growth. Although the details of this business remain largely confidential, this business will
target an older customer than our current brands. We plan to open four test stores in August of
this year with potentially two more over the balance of the year. We have a strong merchandise
and design team currently in place and we are excited about the prospects for this business.
The future of our company has never been brighter. Our brands are strong and relevant
and our business is well positioned for growth. Our company is very profitable with strong cash
flow and a healthy balance sheet. I am confident that we will maintain our position as a leading
specialty retailer by continuing to deliver solid results over the long term.
Michael S. Jeffries
Chairman and Chief Executive Officer