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No rough ride for this IPO
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September 26, 1996: 9:03 p.m. ET
Roosevelt outfitter Abercrombie & Fitch looks good to Wall Street
From Correspondent Katharine Barrett
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NEW YORK (CNNfn) - Apparel retailer Abercrombie & Fitch went public with a fashionable splash Thursday.
The stock, priced originally at $16 a share, shot straight up to close at $23.12. It was a successful initial public offering for its parent company, The Limited, which is maintaining 95 percent voting control of the chain.
Abercrombie & Fitch outfitted the safaris of Teddy Roosevelt, Ernest Hemingway, and the expeditions of Admiral Byrd to the North and South Poles.
Now, one of America's oldest names is taking aim at a younger crowd. New management joined Abercrombie & Fitch in 1992 and dressed up sales with dressed-down, casual clothing.
On college campuses from coast to coast, Generation X spells success for the rejuvenated retailer. With 16 straight quarters of earnings growth, sales increased five percent in 1995 and are projected to gain 13 percent this year.
Company president Michael Jeffries said the company will take a cautious growth strategy. (178K WAV) or (178K AIFF)
In selling Abercrombie & Fitch stock to the public, parent company The Limited hopes to wring more value out of its own sluggish shares.
For similar reasons The Limited took public its Victoria's Secret subsidiary almost a year ago.
The Reynoldsville, Ohio-based company reported 1995 sales of $235.7 million, up 42 percent from 1994 sales of $165.5 million.
The Limited bought Abercrombie & Fitch from Oshman's Sporting Goods Inc. in 1988. In recent years, Abercrombie & Fitch has outperformed most of the Limited's other units, including Limited Express and Limited Too.
Even after the IPO, a few skeptics wonder how long Abercrombie & Fitch will be in fashion with notoriously fickle young buyers. What's more, the IPO premium makes the stock look a little pricey to others.
However, nobody is sneering at the company's recent success and most think the chain has a very promising future. 
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