Abercrombie & Fitch Buying Plan:
Case Study
Develop a six-month merchandise financial plan. The plan must project and justify the following key metrics based on current market research: net sales, monthly sales distribution, stock-to-sales ratios, planned markdowns, inventory purchases, inventory turnover rate, and gross margin.
The six-month financial model for is justified by a comprehensive research strategy. We initiated the process by analyzing macroeconomic and external factors influencing market volatility, which provided the foundational rationale for the monthly planning and allocation of sales targets. From this baseline, we modeled the projected monthly sales increases and the proportionate contribution of each month to the total net sales.
To ensure operational efficiency, the stock-to-sales ratio was set based on industry-leading competitive analysis, drawing specifically from Abercrombie & Fitch’s current success metrics and future revenue guidance. Inventory planning (BOM stock) adhered to standard retail principles, using prior period data to determine current needs. The markdown strategy was not historical but forward-looking, designed to optimize revenue while avoiding repetition of last year's pattern. Consequently, the purchases at retail were calculated as the final balancing figure, ensuring the entire plan’s internal consistency.
My teammate and I developed a six-month financial plan specifically tailored for Abercrombie & Fitch, incorporating a comprehensive analysis of current market trends and strategic research. Our methodology integrated several key sectors to ensure robustness, including the assessment of internal and external economic factors, consumer focus on sustainability and ethical awareness, seasonal influences (weather and color trends), omni-channel marketing strategies, adherence to the 4-5-4 retail calendar, and a detailed year-over-year performance comparison.
Core Analytical & Financial Modeling
Technical & Microsoft Suite
Market Research & Strategic Analysis
Collaboration & Communication
This project was done alongside my teammate at Virginia Commonwealth University:

