Abercrombie & Fitch 2014 Annual Report Download - page 4

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4
DESCRIPTION OF OPERATIONS.
Brands.
Abercrombie & Fitch. Abercrombie & Fitch stands for effortless American style. Since 1892, the brand has been known for its
attention to detail with designs that embody simplicity and casual luxury. Rooted in a heritage of quality craftsmanship, Abercrombie
& Fitch continues to bring its customers iconic, modern classics with an aspirational look, feel, and attitude.
abercrombie kids. abercrombie kids stands for American style with a fun, youthful attitude. Known for its made-to-play durability,
comfort and on-trend designs, abercrombie kids makes cool, classic clothing that kids truly want to wear.
Hollister. Hollister is the fantasy of Southern California. Inspired by beautiful beaches, open blue skies, and sunshine, Hollister
lives the dream of an endless summer. Hollister's laidback lifestyle makes every design effortlessly cool and totally accessible.
Hollister brings Southern California to the world.
Refer to the “FINANCIAL SUMMARY” in “ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS” of this Annual Report on Form 10-K for information regarding net sales and
other financial and operational data by segment and by brand.
FINANCIAL INFORMATION ABOUT SEGMENTS.
The Company determines its segments on the same basis that it uses to allocate resources and assess performance. All of the
Company’s segments sell a similar group of products — casual sportswear apparel, personal care products and accessories for
men, women and kids and bras, underwear and sleepwear for girls. The Company had three reportable segments as of January 31,
2015: U.S. Stores, International Stores and Direct-to-Consumer. Refer to Note 17, “SEGMENT REPORTING,” of the Notes to
Consolidated Financial Statements included in “ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA” of this
Annual Report on Form 10-K for further discussion of the Company’s reportable segments. The Company is currently reviewing
its reportable segments in the context of its recent transition to a brand-based organizational model.
STORE OPERATIONS.
At the end of Fiscal 2014, the Company operated 969 stores. The following table details the number of retail stores operated by
the Company at January 31, 2015:
Fiscal 2014 Abercrombie &
Fitch abercrombie
kids Hollister Total
U.S. 250 116 433 799
International 29 6 135 170
Total 279 122 568 969
DIRECT-TO-CONSUMER OPERATIONS.
The Company operates websites for each brand, both domestically and internationally. The websites reinforce each particular
brand’s lifestyle, and are designed to complement the in-store experience. Total net sales through direct-to-consumer operations,
including shipping and handling revenue, were $832.5 million for Fiscal 2014, representing 22% of total net sales. The Company
operates 46 websites, including both desktop and mobile versions. In addition, the websites are available in 10 languages, accept
nine currencies and ship to over 120 countries.
OMNICHANNEL.
By increasing omnichannel efforts, the Company is working toward providing customers with a more integrated and convenient
shopping experience both online and in-store, including enabling "ship-from-store" and "order-in store." The Company also expects
to have "reserve-in-store" and "in-store-pickup" activated in its U.S. stores during Fiscal 2015, and is working on extending its
omnichannel capabilities to Europe. The brands continue to evolve their consumer engagement strategies by developing and
tailoring digital communication to connect with customers on a more personal level.