Abercrombie & Fitch 2009 Annual Report Download - page 4

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coordinated execution of the Company-wide merchandising strategy. In addition, standardization of each
brand’s store design and merchandise presentation enables the Company to open new stores efficiently.
At the end of Fiscal 2009, the Company operated 1,096 stores. The following table details the number of
retail stores operated by the Company for the past two fiscal years:
Abercrombie &
Fitch
abercrombie
kids Hollister Gilly Hicks Total
Fiscal 2008
Beginning of Year . .................. 359 201 450 3 1,013
New............................ 2 12 66 11 91
Remodels/Conversions (net
activity as of year-end) ............ 2 1 — — 3
Closed .......................... (7) (2) (1) — (10)
EndofYear........................ 356 212 515 14 1,097
Fiscal 2009
Beginning of Year . .................. 356 212 515 14 1,097
New............................ 2 5 14 2 23
Remodels/Conversions (net
activity as of year-end) ............ — — — — —
Closed .......................... (12) (8) (4) — (24)
EndofYear........................ 346 209 525 16 1,096
At the end of Fiscal 2009, the Company operated 340 Abercrombie & Fitch stores, 205 abercrombie kids
stores, 507 Hollister stores and 16 Gilly Hicks stores domestically. The Company also operated six
Abercrombie & Fitch stores, four abercrombie kids stores and 18 Hollister stores internationally. At the
end of Fiscal 2008, the Company operated 352 Abercrombie & Fitch stores, 210 abercrombie kids stores, 507
Hollister stores and 14 Gilly Hicks stores domestically. The Company also operated four Abercrombie &
Fitch stores, two abercrombie kids stores and eight Hollister stores internationally.
Direct-to-Consumer Business.
During Fiscal 2009, the Company operated, and continues to operate a number of websites, including:
www.abercrombie.com; www.abercrombiekids.com; www.hollisterco.com; and www.gillyhicks.com. Prod-
ucts offered at individual stores can be purchased through the respective websites. Each of the four websites
reinforces the particular brand’s lifestyle and is designed to complement the in-store experience. Aggregate
total net sales through direct-to-consumer operations, including shipping and handling revenue, was
$290.1 million for Fiscal 2009, representing 9.9% of total net sales. The Company believes its direct-to-con-
sumer operations have broadened its market and brand recognition worldwide.
Marketing and Advertising.
The Company considers the in-store experience to be its main form of marketing. The Company
emphasizes the senses to reinforce the aspirational lifestyles represented by the brands. The Company’s
flagship stores represent the pinnacle of the Company’s in-store branding efforts. The Company also engages
its customers through social media and mobile commerce in ways that reinforce the aspirational lifestyle of
the brands. Flagship stores and social media both attract a substantial number of international consumers, and
have significantly contributed to the Company’s worldwide status as an iconic brand.
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