A&F Or Will Cooperate With Southeast Asian Electricity Providers

According to the world clothing and shoe net, American teenagers are hindered by the expansion of Asia.

Group Abercrombie & Fitch Co. (NYSE:ANF) decided to switch to e-commerce channel, the company announced on Monday with Southeast Asian electricity providers.

Signing the wholesale agreement will be the brand of the latter brand of the latter.

Brand Hollister.

Abercrombie & Fitch Co. CEO Fran Horowitz said in cooperation statement that she hopes to build a brand loyal customer base in the Southeast Asian market by co operating with Zalora.

Zalora, which was founded in 2002, is the same as the Lazada Group SpA of the market department store. It belongs to the world's most famous mountain village business incubator company Rocket Internet SE (RKET.DE).

Zalora claims to have 600 million users, currently covering 11 markets such as Malaysia, Singapore, Indonesia, Thailand, Philippines, Vietnam, Brunei, Taiwan and Hongkong.

Abercrombie & Fitch Co. did not disclose the scale of its business in the statement, and the company had similar cooperation with ASOS PLC ASC.L (ASC.L) and Zalando SE (ZAL.DE).

After the announcement of the withdrawal of the flagship store in Hongkong last year, Abercrombie & Fitch Zalora has only 11 shops in the Southeast Asian market, which are mainly covered by Singapore's Orchard Road, which is very thin.

However, according to the brand Chinese official website, in the Chinese market, Abercrombie & Fitch has 11 stores, and the brand has 1 and 5 stores in Korea and Ben respectively.

At the same time, the group's Hollister brand has 17 stores in the Chinese market, including one outlets.

In 2011, Abercrombie & Fitch announced its presence in Hongkong, and opened a four flagship store with an area of 25600 square feet and four square feet on Pedder Street. The Hongkong store opened its "sexy marketing" which has been pursued by the brand.

As a window market for the retail market in Southeast Asia, the retail industry in Hongkong has been hit hard in the past three years. Due to the intensification of the civil conflicts between the mainland and Hong Kong, and the strong fluctuation of the exchange rate, the Hong Kong dollar, which is linked to the US dollar, continues to be strong.

In November 2016, Abercrombie & Fitch Co. decided to close the Hongkong flagship store which rents up to HK $7 million / month. As the lease expired in 2019, the early withdrawal of the store resulted in a one-time cost of $16 million for the group.

Apart from the sluggish retail market in Hongkong, the closure of the Hongkong store also shows that Abercrombie & Fitch Co., which has been in a difficult position, can no longer be entangled in some minor markets. At present, the group's four Asian markets have special status. China does not have to mention that Japan and Korea are the most favorite overseas tourist destinations for Chinese tourists in the past three years, while Singapore's orchard road is one of the most important retail outlets in Asia.

According to the world clothing and shoe net, as of the end of January 28, 2017, Abercrombie & Fitch Co. has 898 stores in the world, and Abercrombie & Fitch and Hollister are 355 and 543 respectively.

In the 2016 fiscal year, the group closed 54 stores, and this year will further end 60 stores as the lease expires.

About half of the 709 U.S. stores will be closed before the end of fiscal year 2018, which means that next year, the group will give the group more room to adjust its retail sales.

Joanne Crevoiserat, the group's chief financial officer, said they have always been open-minded about closing stores, and the group has closed hundreds of stores over the past 5 years.

On the contrary, the new store plan of Abercrombie & Fitch Co. is very cautious.

In fiscal year 2017, the group's new store plan includes 4 and 2 full price stores in the US and the international market respectively.

The annual capital expenditure budget was $100 million, and the group said it had taken measures to reduce its spending by about $100 million over the next year.

The annual report released by Abercrombie & Fitch Co. in early March showed that the group's year-round overall store sales fell by 5%, down 16 quarters, and the annual sales fell 5.5% to 3 billion 326 million 700 thousand dollars.

The group's annual net profit plunged by 88.9%, from $35 million 576 thousand in fiscal year 2015 to $3 million 956 thousand, while EPS, from $0.51 to $0.06, adjusted EPS from $1.12 in the 2015 fiscal year to -0.06 dollars.

Abercrombie & Fitch Co. CEO Fran Horowitz said in the earnings report that the fourth quarter performance reflects the challenging and competitive retail environment, and the annual performance has not been achieved, and it is expected that the 2017 will continue to be challenged.

The group is eager to get rid of the consumer stereotype of Abercrombie & Fitch by opening 7 new concept stores this year. After all, in the February 2016 survey, the brand is still the most annoying retailer of American consumers.

However, in recent advertising and marketing, Abercrombie and Fitch have been "over praised", and the road to recovery is long and bumpy.

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