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Jul 03 • 3 min read

The brand strategy shift that boosted revenue 20% year-over-year


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READ TIME: 2 minutes

Abercrombie & Fitch's big comeback offers a masterclass in rewriting your brand strategy and story to meet the evolving needs and desires of your customers. Today, we're breaking down how their shift in strategy not only saved the brand, but led to massive growth.

In the early 2000s, Abercrombie & Fitch was the ultimate status symbol for teens.

I remember feeling so jealous of classmates dressed head to toe in A&F.

The sleek, preppy style seemed like the ticket to being part of the “in crowd.”

In 2005, if you want to fit in, you wear Abercrombie.

The Fall

…But by 2010 Abercrombie started to tank.

Controversies over discriminatory hiring and exclusionary marketing was damaging its image and brand reputation.

And by 2016, Abercrombie was America’s most disliked retailer, its stock plummeting and customers leaving in droves.

The Strategic Shift

The turning point came with the departure of CEO Mike Jeffries.

Under new leadership, Abercrombie new they needed to rebuild the brand reputation and image.

Peeling back the layers, here’s the strategic shifts to Abercrombie’s big comeback.

1 - Abercrombie redefined its target market

Abercrombie shifted the focus from teens to young adults, particularly millennials entering the workforce. They aligned the brand with a more mature and diverse audience

2 - Abercrombie redesigned its product

Abercrombie overhauled the clothing line to feature more sophisticated, versatile, and on-trend styles, appealing to a broader, style-conscious market.

3 - Abercrombie repositioned its brand

Abercrombie transformed from an exclusive, teen-centric brand to an inclusive, relatable one, emphasizing authenticity and diversity.

4 - Abercrombie rebuilt its marketing plan

Prioritizing Instagram and TikTok, Abercrombie leveraged social media and creator partnerships to engage a wider audience. *This was a big one for brand re-activation.

The Results:

Social Media Growth: From 2018 to 2021, social media reach increased by 1,980%, with 343 million TikTok hashtags (much credit going to their creator partnerships)

Stock Performance: A&F's stock rose 80.14% over a five-year period (as of 2022) and there was a 271% surge in stock value over a one-year period (as reported in 2021)

Sales Growth: In April 2024, Abercrombie & Fitch's revenue (12-mo) was $4.465B, a 20.01% increase year-over-year.

Customer Acquisition: Women’s apparel sales increased by 40% since 2018, adding 12 million new customers since 2018

The Lesson

Abercrombie & Fitch’s journey is a masterclass in rewriting your brand strategy and story:

  1. Recognize when your brand no longer resonates
  2. Be willing to change fundamentally, not just superficially
  3. Align with consumer needs, interests, and desires
  4. Activate the change across all aspects of the business

But there’s a deeper lesson here:

Brand strategy isn’t set in stone.

“It’s who we are” can become a dangerous mantra.

Brands, like the markets they serve, must evolve.

The key is to:

  1. Stay acutely aware of changes in your market
  2. Be willing to make strategic shifts in your brand strategy

This isn’t about changing your logo.

It’s about evolving your entire brand essence to resonate with today’s consumers while staying true to your foundational principles.

Strategic repositioning, coupled with modern marketing approaches, can:

  • Reconnect a brand with new generations
  • Regain relevance in a competitive market
  • Drive substantial business growth

For businesses facing stagnation or decline, A&F’s journey offers a blueprint.

It shows how to refresh a brand - not just visually, but fundamentally - to achieve new growth and relevance.

The more time I spend in brand and marketing (and life, actually... ha!), the more I realize the only constant is change.

And the brands that thrive? They’re the ones that evolve purposefully, while keeping one eye on their values and the other on the horizon.

Your brand strategy should be a living, breathing entity.

Nurture it. Challenge it. Evolve it.

That's all for today :),

Dani

P.S.

...and who would've thought A&F would outperform AI? 🤷🏼‍♀️

Your competitive edge isn't better AI prompts - it's a brand strategy that AI can actually execute.

Most companies are feeding generic tools scattered documents and hope for on-brand results.

We do the opposite: we build your Brand OS first - codifying your positioning, messaging, story, and voice into a strategic foundation - then train AI to operate from it.

The result?

Your team creates marketing, sales, and customer content that sounds exactly like you, moves 3x faster, and never needs a "does this feel on-brand?" review.

Apply to work with us here.


Weekly deep dives on AI, brand, and marketing


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