Having been scathed by recessionary losses, the bizarre flying habits of CEO Michael Jeffries, and bedbugs, Abercrombie & Fitch is finally turning things around. The company's stock rose 10.8 percent yesterday to its highest level in almost three years at $65.57 a share following the company's announcement that sales are expected to reach $7.5 billion by 2015. For the year 2010, revenues were $3.47 billion with a net income of $150.3 million versus the year before's net income of $300,000 — or close to half of Jeffries's travel budget on the private jet (before the company paid him to travel less).
This year, A&F has its eye on China, where they forecast $1.25 billion in global sales, and plan to open a store this year. The company plans to open 40 Hollister stores overseas, 30 of those in Europe. The company sees blue skies and hundreds of new stores ahead in all four corners of the globe. Nowhere in the report was a plan outlined to investigate the cost-benefit ratio of injecting fragrance into the stores at a suffocating and possibly environmentally unfriendly rate. In all seriousness, it may have hurt the Abercrombie in Japan.