By 2004 Abercrombie & Fitch (A&F) faced the classic dilemma of most retailers; it was a maturing growth company. Management needed to find a way to rejuvenate its core concept while developing new growth vehicles so that it could once again deliver attractive sales and earnings growth. The company had become the authority on developing aspirational lifestyle brands that appealed to young apparel customers. It also enjoyed industry-leading profitability as a result of its premium pricing strategy and its operating expertise, especially in sourcing. However, a period of intensified competition and economic weakness teamed with fashion misses led it to rethink some key elements of its strategy. Cost controls had helped maintain margins, but it needed to find ways to reaccelerate sales growth.