Chapter 10

Abercrombie & Fitch Co.—Regression Case Study1

Introduction

The Family Clothing Store industry, in which Abercrombie & Fitch Co. (A&F) operates, is highly fragmented and is dominated by a large number of small retailers, each with a low market share of the total industry. The top four players in this industry are A&F, Gap Inc., American Eagle Outfitters, Inc., and Ross Stores. These four companies collectively account for about 40% of the market. A&F generally charges higher prices compared with similar merchandise at Gap and American Eagle. The company was founded in 1892 and is headquartered in New Albany, Ohio.

The Company’s stores offer knit and woven shirts, graphic t-shirts, fleece, jeans and woven pants, shorts, sweaters, ...

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