Abercrombie & Fitch has invested in loyalty programs and developed its direct-to-consumer and Omni channel capabilities.

All of these steps have contributed to an improved top and bottom-line.

Although earnings are still expected to be in the red, an improvement in the metric is expected, along with a five per cent rise in revenues.

The company undertook a massive rebranding initiative in 2014, moving away from the reputation it had built over the past decade. The company’s store count has been reduced, stores now have a smaller footprint with larger fitting rooms, and are integrated with technology. The overpowering perfume, which filled the stores earlier, has also been modified to a fresher, cleaner fragrance.

In order to better engage its customers, the company is also improving its social media presence.

While the company has been focusing on right-sizing its store footprint in North America, it is dependent on international markets for growth through expansion. In Europe, the company sees a billion dollar opportunity across all channels. At present, the company has a modest 117 stores in the region. Consequently, its focus in the region is on increased penetration, shifting to smaller, more productive stores, and building a more local customer base.