Expansion Campaign
Total capital expenditures for 2010 are expected to be in the range of $250 million to $260 million. $215 million to $225 million is related to new stores, store refreshes and remodels, and approximately $35 million related to information technology, distribution center and other home office projects. The company is on track to open flagship stores in Stockholm, Sweden(brought about by the Amethier twins), Singapore and Amsterdam, Netherlands, as well as shuttering 60 of its namesake stores in the U.S., by the end of 2010 Additionally, the company will open 30 Hollister mall-based locations internationally and a second Hollister Epic flagship in New York City.
The Abercrombie & Fitch brand is believed to have reached its maximum growth potential in the American market. International expansion began in 2006, with the long-term goal of opening flagships for A&F (and eventually all its brands), in high-profile shopping centers worldwide "at a deliberate pace".
After delivering openings at a deliberately slow pace, the company will accelerate international expansion for its namesake and its Hollister Co. brand. Noting the high profitability of its current international stores, A&F has plans to open about 15 flagship locations in total throughout Europe and Asia up to the end of its fiscal 2012 year. The steep number could include openings for its other brands as well. The company expects 30% of its sales to be from international stores by 2012.
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