Hollister’s Sales Dip Below $2 Billion
Industry nemesis Hollister saw annual sales dip below $2 billion for the first time in several years due to the pandemic.
Parent company Abercrombie & Fitch recently reported that Hollister’s total sales dropped 15% to $1.8 billion in 2020.
The last time Hollister sales were below $2 billion was 2016.
Hollister has coopted a lot of main stream mall customers over the years that used to be surf industry consumers by bringing its version of the California lifestyle to shoppers around the world.
Hollister is currently positioning itself this way, according to company documents: “The quintessential apparel brand of the global teen consumer, Hollister Co. believes in liberating the spirit of an endless summer inside everyone. At Hollister, summer isn’t just a season, it’s a state of mind. Hollister creates carefree style designed to make all teens feel celebrated and comfortable in their own skin, so they can live in a summer mindset all year long, whatever the season.”
Parent company Abercrombie’s new strategy is to close expensive flagship stores in high profile tourist locations globally to focus more on omni-channel enabled, smaller stores that cater to local customers.
It is also reducing the number of stores it has globally. For example, Hollister ended the year with 497 stores, having closed 56 in the past 12 months.
Abercrombie & Fitch Inc. invested in digital capabilities early and is one of the leaders among its peers when it comes to digital penetration.
In 2020, digital sales comprised 54% of total sales company wide. In Q4, digital penetration reached 57%.