Can ANF's Hollister Keep 19% Comp Growth Into the Back Half of 2025?

Abercrombie & Fitch Co. ANF powered through the second quarter of fiscal 2025 with record results, posting $1.21 billion in sales and $2.32 in earnings per share. Marking its 11th consecutive quarter of growth, the company underscored the strength of its brands and the momentum fueling both store and digital traffic worldwide. A major contributor to this performance was Hollister, which posted a standout 19% increase in net sales and comparable sales, outpacing the broader company trend and reinforcing its role as a key growth engine.

Hollister’s momentum has been driven by a sharp focus on staying connected with its teen customer base. The company entered the back-to-school season with strong momentum, particularly at Hollister, which has been described as one of the busiest destinations in malls. The brand has balanced growth across men’s and women’s categories while boosting both units and average unit retail, showing it can expand without resorting to deep discounting. Event-driven activations, including collaborations at Lollapalooza and the launch of the Collegiate collection, have strengthened cultural relevance and driven strong sell-through rates. By aligning product assortments with trends like Y2K nostalgia and student-focused apparel, Hollister has proven its ability to generate excitement and loyalty among younger consumers.

Abercrombie & Fitch plans to capitalize on Hollister’s strength by maintaining clean inventory levels, enhancing brand activations and leaning into seasonal opportunities such as back-to-school and holiday. The ability to quickly chase into trends like Boho and Western styles, combined with an omnichannel strategy that integrates physical retail and digital engagement, provides Hollister with the flexibility to sustain growth. While comparisons will become more challenging in the second half of 2025 due to last year’s strong base, Hollister’s consistent execution and resonance with the teen demographic suggest it is well-positioned to remain a key driver of Abercrombie & Fitch’s global growth.

ANF’s Zacks Rank & Share Price Performance

Shares of this Zacks Rank #3 (Hold) company have gained 9.7% in the past three months compared with the industry and the broader Retail-Wholesale sector, which rose 10.6% and 6.4%, respectively. The stock also outperformed the S&P 500, which gained 11.1% in the same period.

ANF Stock's Past Three-Month Performance

Is ANF a Value Play Stock?

ANF currently trades at a forward 12-month P/E ratio of 8.61X, which is lower than the industry average of 18.84X and notably below the sector average of 24.93X. This valuation positions the stock at a modest discount relative to both its direct peers and the broader consumer staples sector.

ANF P/E Ratio (Forward 12 Months)

Stocks to Consider

Wolverine World Wide, Inc. WWW designs, manufactures, sources, markets, licenses and distributes footwear, apparel and accessories. It currently sports a Zacks Rank of 1 (Strong Buy). WWW delivered a trailing four-quarter average earnings surprise of 39.1%. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Wolverine’s current fiscal-year earnings and sales indicates growth of 46.2% and 6.5%, respectively, from the year-ago actuals.

Sally Beauty Holdings, Inc. SBH operates as a specialty retailer and distributor of professional beauty supplies. It currently flaunts a Zacks Rank of 1. SBH delivered a trailing four-quarter average earnings surprise of 8.3%.

The Zacks Consensus Estimate for Sally Beauty’s current fiscal-year earnings indicates growth of 8.9% from the year-ago actuals.

Build-A-Bear Workshop, Inc. BBW operates as a multi-channel retailer of plush animals and related products. It sports a Zacks Rank of 1 at present. BBW delivered a trailing four-quarter earnings surprise of 21.3%, on average.

The Zacks Consensus Estimate for Build-A-Bear Workshop’s current fiscal-year sales and earnings indicates growth of 7.4% and 6.9%, respectively, from the prior-year levels.

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This article originally published on Zacks Investment Research (zacks.com).

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