Abercrombie & Fitch Co. (NYSE: ANF) recently opened Gilly Hicks, a provider of women's undergarments like no other.
"The shop, which contains upper-end lingerie, loungewear and intimate accessories, is modeled after a British manor, with columns at its doorways, dark wood paneling and close to a dozen rooms, such as a `bra library' featuring more than 40 styles," according to the Wall Street Journal (subscription required). The company plans to open as many as 15 other Gilly Hicks outlets this year, the paper said.
Abercrombie & Fitch continues to walk the fine line between sexy and soft core porn with Gilly Hicks. The promotional video for the chain on its Web features half-naked and at times totally naked models of both sexes cavorting on a beach in what appears to be Australia. Gilly Hicks, according to the company's marketing department, emigrated from England to Australia in 1932 and opened an underwear store in her family's British colonial-style manor house in Sydney.
This 40-year-old married guy from New Jersey isn't sure if the message of the commercial is that our underwear is so comfortable that you will run around in it in front of total strangers in the beach. Apparently, the models didn't get the message that prolonged exposure to the sun can damage your skin.
Gilly Hicks, which is the company's fifth chain, seems like a good fit with the rest of the company's businesses which are aimed at young people. Plus, the timing seems right as well. Shares of Limited Brands Inc. (NYSE: LTD), parent of Victoria's Secret, have been clobbered over the past year, tumbling more than 33%. December same store sales fell 8%, twice as much as expected. American Eagle Outfitters Inc. (NYSE: AEO) is counting on its Aerie brand of bras, underwear and robes to keep its sales from eroding further.
Shares of the New Albany, Ohio-based casual retailer have risen about 5% over the past year, a solid performance given the worries among investors about consumer spending. Earlier this month, Abercrombie & Fitch posted a decent 9.4% increase in fourth quarter profit on the performance of its Hollister Co. chain and its children's apparel business. Wall Street investors were disappointed with the company's guidance though one analyst is predicting that the stock could jump nearly $30 to $100. That means they will pay extra attention to the performance of the Gilly Hicks, something which they probably would have done anyway for reasons having nothing to do with finance.











Reader Comments (Page 1 of 3)
2-27-2008 @ 10:00PM
karenl77f said...
If this is advertizing, could someone please explain pornography to me?
2-27-2008 @ 10:05PM
SexyBack said...
Please make sexy underwear that is well made like VS used to.
Used to be when you were a VS girl you were a sexy sophisticated woman that wanted more than what the department stores offered.
Now you are nothing more than a cheap shell of what was once defined as sexy.
Please bring sexy back..and not just for size 2 's ok?
And quality please??
Thank you
2-27-2008 @ 10:19PM
bob said...
Dumb
2-27-2008 @ 10:19PM
Jim Lampley said...
I thought this commercial was for Pepsi? I didn't see any Pepsi in the add?
2-27-2008 @ 10:20PM
Meg said...
How are we advertising undergarments if we're not wearing any? I'm pretty sure I'm not the target audience for that ad.
2-27-2008 @ 10:23PM
josh said...
What the??? that isn't "walk(ing) the fine line between sexy and soft core porn" it IS soft core porn. It must be in aussie, cause it would never survive in the US with that advertising.
2-27-2008 @ 10:39PM
zzwhale said...
Sex sells.......... it is, after all, the world's oldest profession....
2-27-2008 @ 10:46PM
Catherine McGaughey said...
A&F will sell overated undies at a over the edge price, this isn't news worthy, as the majority of the working class cannot afford their clothes anyway
2-27-2008 @ 10:49PM
val said...
I've worn Victoria Secret panties for years. I no longer buy them because the fabric quality has really gone downhill. They start getting little holes after a few washings. 10 years ago they were much better quality!
2-27-2008 @ 10:50PM
zzwhale said...
Sex sells.......... it is, after all, the world's oldest profession....
2-27-2008 @ 11:07PM
MS said...
Abercrombie should have no problem. Victoria's Secret has become such cheap junk -- I cannot find anything to buy there that I want...
2-27-2008 @ 11:07PM
Vive and Lake, NYC said...
Victoria's Secret is NOTHING without the stunning gorgeous Supermodel Gisele Bundchen !
Your Heidi Klum is old looking like 55, low-class, and is so fixed up we'd hate to see her aged wrinkled mug in the morning.
Gisele Bundchen is the last supermodel and she makes the rest look like low-class streetwalkers.
VS is now sub-par.
2-27-2008 @ 11:11PM
PETER said...
AGREE !
HEIDI KLUM LOOKS LIKE SHE IS 50 YEARS OLD AND ACTS LIKE SHE'S 20, WHAT A SAD OLD BAG.
2-27-2008 @ 11:28PM
rose said...
These Victoria Secret garments are made in different parts of the world mostly are made in Singapore and also Sri Lanka. None are made in the USA That's the big secret.
2-27-2008 @ 11:29PM
claudetteh124 said...
Silly cotton panties from Victoria Secret -coffee, tea, or me- and they get softer after every wash !!!!! Who needs porno ads................ LOOOL
2-28-2008 @ 1:06AM
deb said...
Why don't they feed these poor children? They are obviously about fourteen, and have never had children, or eaten.... Real people don't look like that, or dance around naked on the beach with more that one significant other. Not a selling point for me.
2-28-2008 @ 1:59AM
SAAB said...
I do agree with rose ,since I am from SRI LANKA myself most of the panties and bras and undergarments are made in SRILANKA because of cheap labour .The quality has dropped too that sucks
2-28-2008 @ 2:03AM
SAAB said...
Its true thats most victoria sectet bras and panties and lingerie are made in SRI LANKA because I am from there and my uncle owns 3 factories that supply them too .but the quality has droped as well i fully agree with rose
2-28-2008 @ 3:11AM
cemc005 said...
I find all of your comments ammusing...I work at Victorias Secret and have for over a year now. For one...Victorias Secrets merchandise quality has not declined....as a company we like to try new and different things such as new fabrics or new designs....if you would listen to us associates when we tell you to hand wash all of our merchandise perhaps your panties and bras would not have holes in them or have the under wire pop out...no one seems to understand that hand wash does not mean delicate cycle in your laundry machine in a lingerie bag....it means hand wash...my entire under garment wardrobe is consistent of Victorias Secret and i don't seem to experience any of the problems that any one else has. Why? Because i am an associate, i know very well how to take proper care of the merchandise just as we tell you when you purchase it. Perhaps therien lies the problem...not that our quality of merchandise has declined but the consumers quality of care for the merchandise has declined...and as for us going out of business or being beat out by another lingerie company, i laugh at the very thought. Agreed our stock has declined...but my store alone on one of the biggest shopping days of the year pulled in over $86,000 dollars...and that was on the low side of our district...and there are over 300 stores company wide...Victorias Secret is growing not only storewide but catalog and internet as well...and as for the "pink is a gimmick comment" that is funny to me because Pink is one of the fastest growing teenage aimed brands out there....as a matter of fact it tends to be about 30% of our business everyday...yes we sell sweatpants for about $35 but the fact of the matter is people are buying them and have been buying them and im sure will continue to buy them...We sold express a long time ago...and our heads are still afloat....We are the only retail store that is given tv air time for a fashion show that pulls in millions of viewers. We are a company that states any woman can be sexy regardless of size or bust measurment...we are a company that empowers woman. By looking at our numbers I believe Victorias Secret is gaining power in the retail industry...I believe we are on top and I believe we are going to stay there.
2-28-2008 @ 3:30AM
bobunis said...
im 26 years old and i shop at this store ... its great i love it. people need to get up to date on things. i bet some of you people cant even use all the features on your cell phone(if you even have one).