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  • Abercrombie & Fitch Conquers Asia: Opens New Store in Manilas SM Mall of Asia

    Abercrombie & Fitch Conquers Asia: Opens New Store in Manilas SM Mall of Asia

    Abercrombie & Fitch, the well-known American fashion label, has extended its global reach with the opening of a new store in the Philippines. Nestled within the bustling SM Mall of Asia, this marks a significant milestone for the brand’s continued foray into the Asian market.

    Continued Expansion into Asia

    Abercrombie & Fitch’s expansion into Asia has been strategic and steady. The brand recently widened its presence in India through a strategic franchise agreement with Myntra Jabong India Private. Besides this, it also established a retail presence in Jakarta and further added three Abercrombie & Fitch and Hollister stores in Hong Kong.

    To facilitate this expansion across Southeast Asia, Abercrombie & Fitch has partnered with MAP Group, a leading retail partner in the region. Steven Sare, Abercrombie & Fitch’s Managing Director for Asia-Pacific, expressed his delight at the warm reception the brand received at the SM Mall of Asia. He praised the new retail store’s aesthetic appeal and thanked his global team for their unwavering support during the rollout.

    Future Endeavors and Financial Highlights

    While the physical store is now open, Abercrombie & Fitch’s official website for the Philippines is still under development. The brand’s increased focus on expanding its Asian presence has been highly profitable. Abercrombie & Fitch Co, the controlling group, reported sales of US$46.5 million in the Asia-Pacific region in its fiscal first quarter. This represents a 24% increase from the previous year, making it the fastest-growing region for the group.

    Questions & Answers

    Where is Abercrombie & Fitch’s newest store located?
    The latest Abercrombie & Fitch store has opened in the SM Mall of Asia, Philippines.

    Who is Abercrombie & Fitch’s retail partner for Southeast Asia expansion?
    Abercrombie & Fitch’s is partnering with MAP Group for its Southeast Asia expansion.

    How has the brand’s expansion into Asia impacted its financial performance?
    The brand’s expansion into Asia has resulted in a significant boost to its sales. Abercrombie & Fitch Co reported US$46.5 million in sales in the Asia-Pacific region in the fiscal first quarter, marking a 24% increase from the previous year.

  • Mcredit’s B+ Rating Affirmed by Fitch Ratings, Highlighting Strong Financial Performance and Digital Transformation Progress

    Mcredit’s B+ Rating Affirmed by Fitch Ratings, Highlighting Strong Financial Performance and Digital Transformation Progress

    Fitch Ratings, a globally recognized credit rating agency, has once again affirmed the Long-Term Issuer Default Rating (IDR) of MB Shinsei Consumer Credit Finance Limited Liability Company (Mcredit), maintaining it at B+ with a stable outlook. This represents the second consecutive year Mcredit’s long-term credit rating has been upheld at this level.

    Steady Financial Foundation

    In a previous assessment in June 2025, the Vietnam Investment Credit Rating Joint Stock Company conferred an A- long-term issuer rating on Mcredit. This underlined Mcredit’s firm financial base, consistent market standing, and escalating acclaim within Vietnam’s consumer finance landscape.

    Fitch’s rating highlights the consistent backing from Mcredit’s two strategic shareholders, the Military Commercial Joint Stock Bank (MB) and SBI Shinsei Bank based in Japan. This collaboration has not only bolstered the company’s financial stamina and fostered transparent governance, but it has also encouraged a mutual emphasis on sustainable growth and digital innovation.

    Focus on Digital Transformation

    In response to evolving market trends, Mcredit has accelerated its comprehensive digital transformation in recent years. By effectively utilizing its strategic ecosystem – which includes partners like MB, MoMo, Viettel, and ZaloPay – Mcredit has been able to broaden its customer reach and diversify its offerings.

    This tactical approach has resulted in robust operational performance and sustained growth. In the first half of 2025, Mcredit reported a 31% year-on-year increase in total operating income. Profit before tax grew 11%, and the cost-to-income ratio (CIR) saw a 5.4 percentage point improvement compared to the previous year.

    Positive Ratings Reaffirm Business Strategy

    The favorable assessments Mcredit received from both Fitch Ratings and the Vietnam Investment Credit Rating Joint Stock Company underscore the company’s strong risk management, sustainable business strategy, and prowess in digital innovation. These ratings have further boosted market confidence for customers, partners, and investors both within Vietnam and internationally.

    Questions & Answers

    What is Mcredit’s Long-Term Issuer Default Rating (IDR) as affirmed by Fitch Ratings?
    Mcredit’s Long-Term Issuer Default Rating (IDR) has been affirmed as B+ with a stable outlook by Fitch Ratings.

    How have Mcredit’s strategic partnerships contributed to its operations?
    Mcredit’s partnerships have contributed to the company’s robust financial status, transparent governance, and focus on sustainable growth and digital transformation. They have also helped the company diversify its offerings and expand its customer base.

    What are some of Mcredit’s recent operational performance metrics?
    In the first half of 2025, Mcredit reported a 31% year-on-year increase in total operating income. Additionally, profit before tax rose 11%, and the cost-to-income ratio (CIR) improved by 5.4 percentage points compared to the previous year.

  • Abercrombie & Fitch Q2 Earnings Soar, But Tariffs Threaten Future Profits

    Abercrombie & Fitch Q2 Earnings Soar, But Tariffs Threaten Future Profits

    Abercrombie & Fitch reported a record-breaking performance for Q2, driven in large part by a 19% sales increase from its subsidiary, Hollister. This performance prompted the company to revise its full-year sales forecast upward. However, not all was rosy, as the Abercrombie brand itself recorded a 5% fall in sales, following a 26% increase in the previous year.

    Detailed Business Performance

    Net sales for the quarter that ended on August 2nd soared by 7% year on year to reach US$1.2 billion, with comparable sales increasing by 3%. Operating income rose to $207 million, a significant jump from the $176 million recorded during the same period the previous year.

    The performance varied by region, with the Americas posting an 8% growth, and the Asia-Pacific region registering a 12% increase. However, the Europe, Middle East, and Africa (EMEA) region saw a slight decrease of 1%.

    During the announcement of the results, CEO Fran Horowitz lauded the resilience demonstrated by the company. She stated that the company outpaced its expectations by achieving a growth of 7% from the previous year and exceeding profitability expectations. The company also returned a considerable portion of its profits, $50 million, to its shareholders.

    Horowitz expressed optimism about the future, stating the company is entering the second half of the year with a proactive approach, backed by an upbeat sales outlook that builds on the previous year’s record results.

    Challenges and Opportunities

    Despite the positive outlook, the company issued a warning about potential challenges. It stated that tariffs on imports from Vietnam, Indonesia, Cambodia, and India are projected to add $90 million in costs this year. This is a significant increase from the company’s May forecast of $50 million in tariff expenses, despite mitigation efforts.

    However, industry experts have recognized Abercrombie & Fitch’s momentum. Neil Saunders, MD at GlobalData, pointed out that the company’s consistent execution has been pivotal to its growth. He praised the company’s strategies, citing the successful store and merchandising efforts, the rate of product refresh, strong seasonal marketing, and responsiveness to trends.

    Saunders also commended Abercrombie Kids’ strategic move into the wholesale market as a smart growth strategy. He highlighted that the US kids’ wear market was valued at $82.1 billion in the previous year, and Abercrombie & Fitch only has a small share of this market. Therefore, expanding through wholesale could provide fast access to new customers and require less capital than opening additional stores.

    Questions & Answers

    What drove Abercrombie & Fitch’s record Q2 performance?
    The main driver was a 19% sales increase from Hollister, a subsidiary of Abercrombie & Fitch.

    How did Abercrombie & Fitch’s performance vary by region?
    Sales in the Americas and Asia-Pacific regions grew by 8% and 12% respectively, while the Europe, Middle East, and Africa region recorded a 1% decrease.

    What challenges does Abercrombie & Fitch anticipate for the future?
    The company expects tariffs on imports from Vietnam, Indonesia, Cambodia, and India to add $90 million to its costs this year.

  • Abercrombie & Fitch Closing Shops

    Abercrombie & Fitch Closing Shops

    Fashion retailer Abercrombie & Fitch is continuing to shutter Hollister and A&F flagship stores across the globe, with its Fukuoka store in Japan one of the next three on the list.

    Starting with the high-profile Pedder Street store in Hong Kong’s Central in the first quarter of the 2017 financial year, Abercrombie & Fitch embarked on what it describes as a “global store network optimization” program.

    Overnight, the company said it will close its SoHo Hollister flagship store in New York City and has exercised kick-out clauses for its A&F flagship locations in Fukuoka and Milan, Italy.  “Today’s announcements build on the closures of the Hong Kong and Copenhagen, Denmark A&F flagship locations. These actions represent important ongoing steps in the company’s global store network optimization efforts as it continues to pivot away from large format stores to smaller, omnichannel-focused brand experiences,” the company said in an earnings statement.

    While the Pedder Street store was vacated two years ago – and remains empty to this day – it took until this year for the company to close its second, in Copenhagen, Denmark. Now the flagship-closure program is gaining pace.

    The Hollister store will close in the second quarter of the current fiscal year and the Milan store by year’s end. The Japanese store will close in the second half of next year.

    “In aggregate, the Copenhagen, SoHo, Milan and Fukuoka locations represented less than 1 percent of total net sales in fiscal 2018. The SoHo and Fukuoka closures are expected to result in pre-tax lease-related net charges in the second quarter of fiscal 2019 of approximately US$45 million. The charges related to the Copenhagen and Milan closures are not expected to be significant in fiscal 2019,” the company said.

    But Abercrombie & Fitch stressed it was not reducing its store network.

    “The company remains on track to deliver approximately 85 new experiences through new stores, remodels and right-sizes this year.”

    First-quarter loss reduced

    Meanwhile, the company reported worldwide net sales rose by 2 percent to $734 million in the first quarter to May 4. Comp sales rose by 1 percent following a 5 percent increase in the same period last year and the company posted an operating loss of $27.3 million, less than half that of last year’s first quarter.

    “We achieved our seventh consecutive quarter of positive comparable sales fuelled by ongoing strength at Hollister and a return to positive comps at Abercrombie,” said CEO Fran Horowitz.

    “This contributed to top-line growth, operating margin improvement and a net loss reduction compared to last year.”

    Horowitz said the company remains focused on its transformation initiatives, with global store network optimization a key priority.

    “We continue to believe in stores and are committed to delivering intimate, omnichannel brand experiences that closely align with our customers’ needs.”

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  • Abercrombie & Fitch sales continue to climb

    Abercrombie & Fitch sales continue to climb

    Abercrombie & Fitch sales rose for the second consecutive year as its restructure and new store format begins to pay off. Comparable sales rose by 3 per cent in the year to February 2, to US$3.6 billion and operating income, after excluding extraordinary items, was $138.6 million compared to $100.8 million last year. However fourth-quarter sales fell by 3 per cent.

    CEO Fran Horowitz said the fashion retailer achieved an improvement in gross profit and reduced operating expenses, resulting in a 77-per-cent improvement in net income.

    “We continue to keep the customer at the centre of everything we do and are excited about the future of our brands. Our transformation initiatives are gaining traction and keeping us on track to deliver our previously disclosed fiscal 2020 targets.”

    Neil Saunders, MD of GlobalData Retail, said while the sales decline during the fourth quarter looks poor on the surface, the dip is a function of a calendar shift and a shorter trading period compared to last year.

    “The comparable Abercrombie & Fitch sales figure, which strips out these negative influences, provides a more balanced assessment of performance and here we believe A&F continues to deliver good growth. The comparable growth rate of 3 per cent is particularly impressive when set against last year’s stellar 9 per cent uplift.”

    He said there was now a clearly evident divergence between the performance of the Abercrombie and Hollister brands. The former posted a 2 per cent decline in comparables with the latter recording an impressive 6 per cent uplift.

    “In our view, Hollister is a brand that is strongly connected to its core customer base, both through impressive marketing and an assortment that is attuned to their needs and tastes. Our own tracking shows that the brand has strong traction and is attracting and converting a core group of shoppers on a regular basis at the same time as adding some new shoppers into the mix. Provided Hollister remains on trend with its range – and we see no reason why this should not be the case – we believe it should continue to perform well as the company moves into its new fiscal year.”

    Saunders said that while Abercrombie’s performance was a little soft this time around, the brand was up against tougher prior year figures.

    “Nevertheless there has clearly been a loss of momentum. Our data show that affinity to the brand, although much improved, is a more tenuous than Hollister. This means that Abercrombie was more exposed to the loss of consumer momentum in the general economy after Thanksgiving and Black Friday.”

    But he said the brand continues to show good potential and there were a number of fashion wins over the period, including good traction in outerwear.

    “Despite the slowdown we remain confident that Abercrombie is on the right track and can improve its numbers as it fine-tunes both marketing and merchandising.”

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  • Fitch takes on new executives in APAC

    Fitch takes on new executives in APAC

    Retail and brand consultancy Fitch has changed its leadership structure in the Asia Pacific region with two appointments and a promotion.

    Based in Shanghai, Nikki Lin has been promoted to managing director of Fitch China. She joined Fitch as GM from Interbrand early last year.

    Returning to the company, Simon Bell has been appointed MD for Fitch Singapore. He has more than 20 years’ experience working in Singapore, India and Australia in strategy, management and regional roles. He was previously Fitch India strategy director from 2009 to 2011.

    Fitch Hong Kong has appointed Janice Siu as business director. More recently an independent consultant, she was previously MD at brand and communications agency Brash. She will report to Hong Kong MD Cally Williams.

    Fitch global CEO David Blair says the company has had a strong presence in Asia for a long time.

    “With the acquisition of the Hong Kong studio last year, we are now one of the biggest brand and design consultancies in Asia.”

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  • Retail decline in China, says Fitch report

    China’s traditional retail industry is continuing to decline with demand likely to “remain muted” into next year, according to a new Fitch report.

    The credit rating agency’s report covers shops and and department stores.

    “Not only are shopping preferences changing, but declining consumer sentiment affected retail sales in several categories this year,” analysts Yee Man Chin and Cathy Chao say in the report. “We think the rapid change in shopping formats will increase competition, and therefore expect persistent weak sales for traditional retailers as consumer preferences evolve.”

    In the first nine months of this year, the top 50 domestic retailers saw sales fall 1.9 per cent, representing a slowdown in growth of 2.6 per cent compared to the same period last year, according to the China National Business Information Centre.

    Despite the country’s middle class expanding, sentiment has been dampened by a devalued renminbi and the economic slowdown, says Chin and Chao. Shoppers are now increasingly favouring eCommerce, which makes up 20 per cent of the country’s retail sector, and shopping malls over traditional channels such as department stores and street-level stores.

    This is reducing profitability for retailers who run their own stores with a fixed cost base for rent and staff, the analysts say.

    While the retail sector expanded 10.4 per cent in the first-three quarters of the year, the growth was largely from online sales, which surged 26.1 per cent year-on-year to 3.5 trillion yuan (US$513.8 billion), according to data from the National Bureau of Statistics (NBS).

    Same-store sales for Parkson Retail Group fell 9.7 per cent in the first half, while for the Golden Eagle Retail Group the drop was 8.7 per cent. Chinese shopping centre group Intime Retail, which is backed by Alibaba, had a 3.7 per cent fall in sales in the first nine months of the year.

    More competitive

    Weakness in the industry is making the retail environment increasingly competitive, say Chin and Chao. “Retailers can gain an edge by improving their product mixes, because certain industry segments such as sporting goods are continuing to grow.”

    Sports companies went through consolidation in 2012, and with consumers becoming more health-conscious, suppliers like 361 Degrees International “should benefit accordingly from sales growth,” says the Fitch report. A Chinese athletics brand, 361 Degrees has seen same-store sales growth rebound by more than 5 per cent since 2013.

    Traditional retailers are also resorting to new tactics to attract customers. These include “experimental shopping” whereby outlets increase their F&B, lifestyle and entertainment options, as well as linking online-to-offline shopping capabilities, the analysts say.

    Through “gimmicks” and technology adoption, retailers can draw millennial and middle-class shoppers by offering digital and personalised shopping, says Colliers International (Hong Kong) associate director of research Joanne Lee.

    “We believe technology will come into the market, and artificial intelligence or virtual reality will enhance the shopping experience,” she says.
    Her colleague director Daniel Shih says social media will be a focal point for the future, for both retailers and shopping centres.

    These strategies have been evident in the roll-out of the annual Singles Day shopping event hosted by Alibaba, reports the South China Morning Post.

    While retailers can take steps to reduce costs, such as reducing inventory or closing stores, Fitch says the structural challenges facing the retail sector are likely to persist.

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  • Fitch Asia appointed new chief

    Fitch Asia appointed new chief

    Fitch Asia, the retail and brand consultancy, has appointed a new regional CEO to cover north and southeast Asia.

    UK-born and Australian-raised Andrew Crombie will lead the company’s growth across the region from its Singapore hub, reporting to worldwide CEO Simon Bolton. Crombie will work closely with China GM Nikki Lin to expand opportunities in that market. He takes over from Ian Bellhouse, who is moving on to a new venture.

    Crombie has spent 25 years working in Singapore, Taiwan, Hong Kong and Malaysia in regional and global roles for agencies including Batey Ads, FCB, Havas and Ogilvy. He began his career in Australia working for such brands as American Express, Banyan Tree Resorts, BMW, Carlsberg, Dell, Dunhill, Guinness, Hennessy, IBM, Mercedes Benz, Porsche, Qantas, TagHeuer and Visa Gold.

    Most recently, he has been MD and partner at healthcare agency H&T Asia.

    “Andrew’s brief is to make Fitch famous in this region, and he’s the person to do that,” says Bolton. “No-one thinks about the customer journey more, and he will bring this expertise to Fitch along with his extensive understanding of the diversity and rich potential for retail and experience design within the region.”

    “It’s great to be joining Fitch at this time of profound change in how consumers are engaging with brands,” says Crombie, who takes up his new position on May 3.

    “Asia is poised to be at the forefront of innovation in retail and brand experience.”

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  • The Macallan pop up tours Asian cities

    The Macallan pop up tours Asian cities

    A 465 sqm pop up store promoting Macallan single malt whisky is touring major Asian cities.

    Designed by agency Fitch, the unique pop up is by day a shopping and exhibition area, open to any walk-in customers. In the evening, the space is transformed into a bar offering reserved tasting sessions. Guests have the opportunity to enjoy The Macallan, talk with whisky experts, and connect with like-minded connoisseurs.

    After a month inside Shanghai’s Jing An Kerry Centre, the pop up moves to Taipei’s Dunhua South Rd on October 21 for a month, and then on to Seoul and Singapore.

    Fitch says the pop up is designed to take guests “on a journey of discovery with The Macallan, through a highly interactive and sensorial experience”.

    Macallan’s regional brand director, Coral Gill, says the Toast The Macallan pop up is a regional consumer engagement program that serves as a distinctive platform for The Macallan to reach and connect with more consumers.

    “Toast the Macallan is into its second year in the region and this event in Shanghai was the first time this exclusive event was run for 30 days, allowing even more consumers to engage and share the experience with the brand.”

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  • Fitch boosts Asian team

    Fitch boosts Asian team

    Retail and brand consultancy Fitch has named two senior executive appointments in Asia.

    Ian Bellhouse has been appointed regional CEO for Asia Pacific and Greater China, reporting into Worldwide CEO Simon Bolton. With more than 20 years at Fitch, Bellhouse moved from London to establish the Singapore business in 1999 and has played a key role in the consultancy’s growth in the region. He also set up operations in China in 2012.

    Bellhouse will switch from his current role as global strategy director.

    Darren Watson, previously creative director for the Singapore studio, has been promoted executive creative director, overseeing creative output across all client work in the region.

    Watson has spent 10 years at Fitch, leading creative strategy for multiple-award winning projects such as Asian Paints in India and Vivid Homes in China, a subsidiary of B&Q.

    Watson will continue to report into Fitch’s chairman and chief creative officer Tim Greenhalgh.

    Bolton said both executives have developed a special partnership, which has led to great work on behalf of clients over the years and in turn to a very successful business.

    “Operating from the Singapore hub, I’m confident that they will emulate these achievements in other parts of the region including South East Asia, North Asia and China as they continue to expand Fitch’s horizons.”

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