Abercrombie & Fitch Co. shares rallied after revenue topped estimates and the retailer raised its annual earnings guidance, suggesting the preppy apparel company is regaining momentum.
Shares rose as much as 42%, the most intraday since 2025, in New York trading on Wednesday. The stock had declined 13% this year through Tuesday’s close. Short interest is about 9% of the company’s float, according to data from S3 Partners, potentially exacerbating the stock’s volatility.
The New Albany, Ohio-based company now expects adjusted earnings per share for fiscal 2027 as high as $13.60, up from previous guidance with a high end of $11. The retailer also said it expects net sales will grow 5%, the top end of its previous view, encouraged by sales in its namesake brand.
In the company’s second quarter, net sales were $1.27 billion and marked the fifteenth straight quarter of sales growth. Despite overall same-store sales for the quarter falling flat, the company’s performance was well received.
The business is driving up numbers off the back of “very stiff” prior year comparatives, GlobalData analyst Neil Saunders wrote in a note Wednesday. “Looking ahead, we are pleased by the brand heat that both main brands continue to maintain,” he added.
Abercrombie, known for its polo shirts and logo sweatshirts, has been one of the apparel industry’s success stories in recent years. Chief executive officer Fran Horowitz’s focus on becoming a more premium lifestyle brand has resonated — especially among millennials who grew up with the brand.
The company’s namesake brand saw net sales rise 8% year-over-year in the second quarter, while same-store sales rose 4%, partly due to more full-price selling and an expanded range of products. Horowitz said on a call with analysts that consumers were particularly drawn to Abercrombie’s knitted and woven offerings during the second quarter.
At the Hollister brand, consumers were also drawn to knits, as well as its bottoms offerings, Horowitz said. The brand saw same-store sales fall more than expected, though as a result of demand outstripping inventory at many points in the quarter, she said. The business is seeing a good “balance,” in terms of what resonates with customers, Horowitz added. Revenue rose 2% for Hollister.
“We’ve been on quite a journey here and really have rebuilt this entire company from bottom to top and top to bottom,” Horowitz said on the call. “We’re winning across genders and brands and regions,” she added.
The brand, which has gained traction with younger generations, remains on track for its best-ever year, bolstered by back-to-school spending and brand buzz from its Lollapalooza festival launch and partnership with Target, Horowitz added.
–With assistance from Lindsay Blakely.
(Updates headlines and commentary from call.)
More stories like this are available on bloomberg.com
©2026 Bloomberg L.P.
