Abercrombie & Fitch to Close 180 Stores

Looking to run a more lean and efficient organization, Abercrombie & Fitch Co. is planning on cutting 180 domestic stores in the next three years.

Blaming sluggish sales in ‘b-mall’ locations, the company is trading American outlets for more lucrative locations overseas.

CEO and Chairman Mike Jeffries told press, “A smaller [U.S.] base in better malls play to the quality level of the A&F business around the world.”

“The overall economics of our business in Europe remain very strong. Our top line in Europe grew 85 percent for the quarter. Hollister Europe, which now represents approximately two-thirds of our store business in Europe, continued to [see comparable-store sales growth] despite a very difficult environment.”

And Needham & Co. analyst Christine Chen agreed, “Abercrombie stands for something. What they’re doing from a store environment is something that’s unique for the international markets. There’s nothing like them over there. The areas that they’re going into — Europe and Asia — those regions have a big club culture and their stores are quasi-clubs. For the young customer, it can be viewed as a cool place to hang out.”