ANF's Hollister Momentum Continues: Can It Be Sustained?

Abercrombie & Fitch Co. ANF continues to see standout momentum from its Hollister brand, which has emerged as a key growth engine within the portfolio. The teen-focused label has consistently delivered strong product acceptance and customer engagement, supported by targeted marketing, refreshed assortments and disciplined inventory management. With Hollister gaining traction across genders and categories, investors are closely watching whether the brand’s sustained performance can remain durable amid evolving consumer demand and macro headwinds.

The numbers underline Hollister’s growing strength. In fiscal 2025, Hollister delivered 15% net sales growth, supported by 13% comparable sales growth, marking one of its strongest performances in recent years. The brand also recorded its 11th consecutive quarter of net sales growth, reflecting continued traction with teen customers. Companywide, ANF generated record annual net sales of $5.27 billion, up 6% year over year, with Hollister playing a major role in driving the top-line expansion through increased unit sales, higher average unit retail (AUR) and solid traffic trends.

Operationally, Hollister’s success has been fueled by a disciplined “Read and React” inventory model, allowing the company to chase demand and replenish winning products quickly. Strong performance in key categories such as fleece, graphics and outerwear has helped maintain balanced growth across genders. Additionally, strategic marketing campaigns and collaborations — including seasonal collections and limited-time partnerships — have enhanced brand visibility and engagement with the teen demographic, contributing to improved customer retention and expanding reach.

Looking ahead, sustaining double-digit growth at Hollister may become more challenging as comparisons toughen and the brand scales further. Management expects growth to normalize toward mid-single-digit levels over time, but ongoing investments in stores, digital capabilities and product innovation are expected to support continued momentum. If Hollister maintains strong product relevance and customer connection while navigating tariff pressures and broader retail uncertainties, it could remain a central pillar of ANF’s long-term growth strategy.

ANF’s Zacks Rank & Share Price Performance

Shares of this Zacks Rank #3 (Hold) company have gained 17.4% in the past year compared with the industry and the broader Retail-Wholesale sector, which rose 15.3% and 3.7%, respectively.

ANF Stock's Past Three-Month Performance

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Is ANF a Value Play Stock?

ANF currently trades at a forward 12-month P/E ratio of 8.22X, which is lower than the industry average of 16.10X 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 stock currently carries a Zacks Rank #2 (Buy).

ANF P/E Ratio (Forward 12 Months)

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Other Stocks to Consider

We have highlighted three other top-ranked stocks in the retail space, namely, Deckers Outdoor Corporation DECK, Tapestry, Inc. TPR and FIGS Inc. FIGS.

Deckers is a leading designer, producer and brand manager of innovative, niche footwear and accessories. It flaunts a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Deckers’ current fiscal-year earnings and sales indicates growth of 8.5% and 8.9%, respectively, from the year-ago actuals. DECK delivered a trailing four-quarter average earnings surprise of 36.9%.

Tapestry, which was formerly known as Coach, Inc., is the designer and marketer of fine accessories and gifts for women and men in the United States and internationally. It currently sports a Zacks Rank of 1.

The Zacks Consensus Estimate for Tapestry’s current fiscal-year earnings and sales implies growth of 26.5% and 11.2%, respectively, from the year-ago actuals. TPR delivered a trailing four-quarter average earnings surprise of 12.8%.

FIGS is a direct-to-consumer healthcare apparel and lifestyle brand, and it currently has a Zacks Rank #2.

The Zacks Consensus Estimate for FIGS’ current financial-year sales indicates growth of 11.7% from the year-ago reported number. The company delivered a trailing four-quarter earnings surprise of 187.5%, on average.

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Abercrombie & Fitch Company (ANF): Free Stock Analysis Report

Deckers Outdoor Corporation (DECK): Free Stock Analysis Report

Tapestry, Inc. (TPR): Free Stock Analysis Report

FIGS, Inc. (FIGS): Free Stock Analysis Report

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

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