Abercrombie & Fitch Rides High on Back-to-School Boom and Pricey Jeans

Abercrombie & FitchANF

is back in style, both on Wall Street and Main Street. After its stock halved earlier this year, the preppy retailer just beat expectations and raised its outlook for the second consecutive quarter. Now up ~45% since April lows,ANF

’s glow-up story is turning heads.

• Abercrombie now sees full-year sales growing by a midpoint of 6% instead of 4.5% — fueled by sub-brand Hollister’s standout 19% surge, as back-to-school teens loaded up.
• Tariff costs almost doubled expectations to $90M, but affluent buyers barely blinked at subsequent price hikes — shoppers kept swiping for $100 jeans and fresh dresses.

Better jeans: As CEO Fran Horowitz said, “We entered the second half … on offense,” setting itself apart from rival American Eagle’sAEO

sliding numbers and PR nightmare. Still, investors should watchANF

’s margins closely, as it signaled profitability may land below analyst hopes. While Abercrombie seems to have its groove back, with costs up and margins down, its toughest test is walking the earnings runway.