Dive Brief:
- Venturing further into the children’s market, Abercrombie & Fitch Co. on Thursday announced it is partnering with Haddad Brands to amplify its Abercrombie Kids brand internationally.
- As part of the collaboration, Abercrombie & Fitch Co. will continue producing the children’s clothing brand, but Haddad Brands will provide new distribution channels, according to a company press release. Haddad Brands will also integrate baby and toddler categories into the brand’s selection, which currently serves children ages 5 to 14 years old.
- The Abercrombie Kids’ Fall 2025 items will be available in Haddad Brands’ showrooms worldwide next month, the company said.
Dive Insight:
Though market conditions have hit other brands and retailers hard, Abercrombie & Fitch Co. and its namesake brand have been performing well lately. In its fiscal year 2023 earnings, the company reported a 16% rise in net sales from the previous year to $4.3 billion. Abercrombie brands, which includes the brands Abercrombie & Fitch and Abercrombie Kids, saw its net sales jump 35% year over year in fiscal year 2023.
The gains continued into the first quarter when the company’s overall net sales spiked 22.1% year over year to just over $1 billion, while Abercrombie brands net sales grew 31.1% from the previous year to $571.5 million.
The company’s latest partnership with Haddad Brands will allow it to extend its reach even further.
“With our Abercrombie Kids brand, we have created comfortable, high-quality apparel for children that allows them to feel exceptional every day,” Abercrombie & Fitch Co. CEO Fran Horowitz said in a statement. “As we work to diversify A&F Co.’s channel mix and drive sustainable, profitable growth, we are thrilled to partner with Haddad Brands to build on our success and create an opportunity to grow the brand in the years ahead by engaging with new customers globally.”
Abercrombie’s efforts to grow its market share in the children’s apparel space come as other brands and retailers try to do the same. Macy’s reintroduced Epic Threads, a private-label children’s clothing and accessories line, across all of its stores and online. Target in July tapped Hudson's Bay to begin selling its Cat & Jack children’s line at 82 Hudson’s Bay locations.
As competition heats up, legacy players in the children’s apparel market are facing their own challenges. The Children’s Place lost its chief executive in May after mulling strategic alternatives, including working with Centerview Partners and other advisers, lenders and potential lenders to find new funding following lackluster fiscal results
