Abercrombie & Fitch’s inventories were up 50%

It is a general proverb, retailing retailer can make other retailers pricing for a limited time of time. But in the end, a significant ARO investment higher returns can also easily consumers provide better value orientation, but in the long run. More than 44 percent on average ARO in the past five years, but said the averaged less than 23%. In fact, the ARO the worst year, while 29% said the best 34 percent.

Abercrombie & Fitch’s inventories were up 50% from a year ago, and while management maintains that this was planned as a result of their judgment that inventories were inadequate, their judgment will certainly be open to questioning. Meanwhile, Aeropostale’s inventories dropped 5% in aggregate, and 11% on a per retail square foot basis. The merchandise is not comparable, but Aeropostale’s inventory turnover rate is 5x that of Abercrombie’s, giving ARO a tremendous advantage in responding to change in both fashion trends and the pricing environment.