Abercrombie & Fitch Co. ANF announced plans to mark the debut of its Abercrombie & Fitch brand in the UAE with a new store in Dubai, at the Mall of Emirates. The store is slated to open doors on Dec 26, 2015.
The new store, which forms part of the company’s joint venture with Majid Al Futtaim Fashion, spans over 18,000 square feet, being one of the brand’s largest mall-based outlets globally. Additionally, the store features a newly designed concept, along with a setup for the abercrombie kids brand and a separate perfume boutique.
Hence, this new store, which bears the brand’s signature style, is likely to draw shoppers, given its attractive shopping environment.
Abercrombie has been focused on global expansion for a while now, particularly in core growth regions. While the Dubai store marks Abercrombie & Fitch’s first store in the UAE, it is the third store of the brand in the Middle East region. Prior to this, the company opened two Abercrombie & Fitch brand stores in Kuwait, in 2015 beginning.
The latest store is clearly a result of solid demand for the brand in the Middle East region. Further, management considers the UAE to be a perfect fit for the brand, given its strong development potential in the region and the company’s collaboration with Majid Al Futtaim Fashion.
The company’s focus on international expansion forms part of its key growth strategies. Even in the face of economic challenges, when teenagers have become less active shoppers, Abercrombie has put in due effort to stay in the business by expanding its international operations. Moreover, the company is committed toward closing its underperforming domestic stores in order to drive top-line growth, while enhancing profitability.
Evidently, during the third quarter, Abercrombie opened four international stores and nine in the U.S., while closing two domestic stores. Apart from the year-to-date store openings, the company plans to introduce eight new stores in the final quarter, including two stores in North America and six international stores.
We believe that these constant expansion endeavors will help this Zacks Rank #1 (Strong Buy) company revive its iconic brands and drive notable and sustained growth.
Stocks to Consider
Other well-ranked stocks in the same industry include American Eagle Outfitters, Inc. AEO, also with a Zacks Rank #1, Express Inc. EXPR and Foot Locker, Inc. FL, each carrying a Zacks Rank #2 (Buy).
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