It has over 1000 stores globally - but it just couldn't make Australia work.
Abercrombie & Fitch will exit the market after first opening two Hollister stores in 2013.
Abercrombie executive chairman Arthur Martinez said the Australian market "was even more challenging than expected".
It is expected the stores will close towards the end of the 2015 financial years.
The move comes at a difficult time for Abercrombie, which released its fourth quarter results this week.
Net sales tumbled 14 per cent to US$1.12 billion over the period, while comparative store sales fell 10 per cent.
They were six per cent lower in the US and down 17 per cent in international markets.
Despite the setback, the company plans to open 15 full-price stores in fiscal 2015 in the key growth markets of China, Japan and the Middle East and four full price stores in North America.
It also plans to open 11 new outlet stores in the U.S and close around 60 stores.