The company will launch the new format, now still called"concept five," with three units in January, growing to sevenstores by March 2008, even as it continues to grow its existingchains. The plans include six new Abercrombie & Fitch stores,67 new Hollister Co. stores, 27 new abercrombie stores, and 10 newRuehl stores in 2007. The children-oriented abercrombie stores willsee a particularly strong growth spurt, including a possibleexpansion into Canada.

"We had not aggressively been expanding [the] kids [stores],"said Michael S. Jeffries, CEO and chairman of Abercrombie &Fitch Co. "But with their success, it clearly has opened up morestore locations. We can take that brand to about 250locations."

International expansion also is a major part of the plan.Abercrombie & Fitch's first European store will open in Londonon March 22nd, and the firm is exploring Tokyo and other "keyEuropean markets" to grow both Abercrombie & Fitch andHollister in 2008.