Abercrombie & Fitch Co. is entering India through a new multiyear, franchise partnership with Myntra Jabong India Private Ltd., the New Albany, Ohio-based youth retailer revealed Wednesday afternoon.
A&F indicated that Myntra’s business-to-business wholesale entity will develop the Abercrombie and Hollister brands’ presence in India, including brick-and-mortar retail stores, regional e-commerce sites and branded digital storefronts operated by a network of licensed and independent third parties.
Myntra Jabong is considered one of India’s leading players in the fashion and lifestyle space.
“With the strength of A&F Co.’s brands today, we are thrilled to partner with Myntra Jabong to more deeply engage with new and existing customers in India,” Fran Horowitz, chief executive officer of Abercrombie & Fitch Co., said in a statement. “It’s an incredibly dynamic and diverse market, and one where we see tremendous long-term potential as we continue to pursue global brand growth.
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“Staying close to our customers and putting them at the center of everything we do has been the foundation of our transformation and the key to our success in recent years,” Horowitz added. “In Myntra Jabong, we have found a like-minded partner whose expertise and capabilities will allow us to go to market with these same strategies in India.”
Talking about the partnership, Nandita Sinha, CEO of Myntra, said, “We are delighted to bring the much-sought-after and iconic brands, Abercrombie & Fitch and Hollister, renowned for their commitment to enduring quality and exceptional comfort, to India, for our fashion-forward customers. We will apply Myntra’s fashion and tech expertise to connect Abercrombie & Fitch and Hollister with the country’s thriving fashion audience and help them scale as we have done with numerous other global brands. The Indian lifestyle market offers potential to global brands, and we are pleased to be their preferred partner in crafting their India growth journey.”
Abercrombie & Fitch Co. operates 750-plus stores across North America, Europe, Asia and the Middle East, as well as the e-commerce sites abercrombie.com and HollisterCo.com. Of A&F’s three global regions, the Americas is the company’s largest, followed by EMEA (Europe, the Middle East and Africa) with Asia-Pacific the smallest, with plenty of opportunity for growth.
A&F Co. has logged seven straight quarters of gains and is eyeing net sales growth in the range of 12 to 13 percent for 2024. That would bring its annual volume to $4.82 billion, from $4.3 billion in 2023, and near the not-too-distant goal of surpassing $5 billion in annual sales. In 2023, A&F Co. achieved its best operating margin in 15 years and increased sales year-over-year. The pact with Myntra Jabong reflects efforts to sustain the momentum.
Neil Saunders, managing director of retail at GlobalData, recently told WWD, “The result is a modern company that resonates with consumers and has performed spectacularly well. Abercrombie will remain on a trajectory of growth in the near-term. The brand has momentum and continues to win new customers. It also has new growth opportunities in its international business. Growth levels may moderate as it laps tougher comparatives but the key measure is whether it can continue to add market share. The answer here is a clear ‘yes’ for the foreseeable future.”
A&F did not disclose its timetable for entering India, either through stores or e-commerce, nor were any store locations specified.
