Abercrombie Posts Six Straight Quarters of Winning --- Someone Give Fran Horowitz a Friggin Trophy!

Well, I sure as hell didn’t have this on my 2024 bingo card… 

It turns out, Abercrombie & Fitch isn’t just surviving the retail apocalypse—it’s dodging through it with overpriced perfume and a pair of perfectly distressed jeans. The mall rat turned comeback king has pulled off what seemed impossible: six straight quarters of double-digit sales growth. That’s right, your favorite punchline from the 2000s just flipped the script, and not even the swirling scandal around its former CEO, Mike “I’ll Pay You to Take Your Shirt Off” Jeffries, could derail this resurgence. The receipts? Oh, they’re juicy.

(Source: Giphy) 

For starters, Q3’s net income came in hot at $131.98 million, or $2.50 per share—blowing past last year’s $96.2 million ($1.83 per share). Sales? Up 14% to a slick $1.21 billion, compared to last year’s $1.06 billion. CEO Fran Horowitz is clearly celebrating as she stated a  “broad-based growth across regions and brands.” 

Oh, and in case that wasn’t enough, Abercrombie decided to moon even harder by boosting its holiday season sales guidance to 5%-7% growth, leaving analysts’ tepid 4.8% predictions eating dust. For the full year, they’re now forecasting 14%-15% sales growth, climbing past their original 12%-13% guidance. Analysts, meanwhile, are picking their jaws off the floor with their 12.1% estimates. Bless their hearts.  

(Source: Simply Wall Street) 

But, but, but…  why the hell did Abercrombie’s stock drop 4% after this mic-drop of a quarter? Well, because Wall Street is a perpetually unsatisfied toddler. Despite the glowing numbers, Abercrombie’s holiday outlook—while solid—represents a slowdown from last year’s 21% middle finger growth. Apparently, anything less than an encore of that blowout performance makes investors clutch their pearls and hit the sell button. (Think: Nvidia) 

But let’s talk about the real tea here: Abercrombie’s absolute transformation under Fran Horowitz. Again, this isn’t just a comeback—it’s a full-blown rebrand that has millennials and Gen Z alike lining up for overpriced basics. Regionally, the growth is across the board. For instance, sales in the Americas were up 14%. EMEA (Europe, Middle East, and Africa)? Also up 15%. APAC (Asia-Pacific)? A mindf**king 32% increase. It seems like everyone, everywhere, has decided that Abercrombie is cool again—and honestly, who saw that coming?

(Source: Giphy) 

What’s more is that it’s not just the Abercrombie brand pulling its weight either. Hollister—yes, the one that once reeked of cologne and bad decisions—is crushing it too. Abercrombie’s comparable sales grew 11%, while Hollister clocked in at a ridiculous 21%. For context, Abercrombie posted a 26% gain last year, so even lapping that is impressive. Meanwhile, Hollister is somehow managing to charm Gen Z, a demographic that generally hates everything. The clear differentiation between the two brands is working: Hollister now accounts for nearly half of Abercrombie & Fitch’s revenue, and nobody’s mad about it.

(Source: Retail Wire) 

Oh, and let’s not forget about the thicc and girthy margins, baby. Despite throwing money at pricey air freight to dodge ocean shipping delays (and that East Coast port strike that had everyone sweating), Abercrombie’s gross margins still ticked up to 65.1%—a 20-basis-point improvement year-over-year. Operating income also surged 30% to $179 million. Translation? They’re printing money hand over fist. 

Especially since Abercrombie doesn’t seem to be “just satisfied” in its own lane. For example, the brand is  branching out into new categories, like its wedding collection and partnerships with the NFL. International growth is also high on the agenda, with APAC and EMEA leading the charge. Meanwhile, Hollister is carving out its niche as a Gen Z magnet, while Abercrombie courts millennials with “elevated basics” that scream, “I wanna be forever young”.

(Source: Giphy) 

Of course though, there are a few burnt pies in the oven here. Operating margins dipped slightly from 15.5% in Q2 to 14.8% in Q3, thanks to sky-high freight costs. And while the holiday guidance is all kinds of strong, the slowing growth compared to earlier quarters has some investors side-eyeing the stock like I do when my wife says she just wants to “look around” at Target. Plus, there’s also the broader retail boogeyman: macroeconomic uncertainty. Sure, Abercrombie’s wealthier customer base is less likely to flinch at rising prices, but tariffs, geopolitical drama, and volatile shipping costs still loom large.

In the end, the bizarre part is that Abercrombie is absolutely thriving in a retail landscape littered with corpses. With sharp execution and an “apparent” killer brand strategy the company is absolutely body-bagging its competition. And while Wall Street might be less than impressed over a slight deceleration, here’s the deal: Abercrombie getting that money. And in the world of business—that’s all the matters. 

(Source: Giphy) 

So, the next time a Gen Z kid buys a Hollister hoodie or a millennial drops cash on an Abercrombie wedding dress, just remember: this brand is living proof that comebacks aren’t just for washed-up boy bands. Fran Horowitz isn’t running a company—she’s orchestrating a retail revolution. And honestly? I can’t help but love to see it.

In the meantime, keep an eye on this company that was the epitome of my horrific middle school years and as always stay safe and stay frosty, friends! Until next time…

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Stocks.News does not hold positions in companies mentioned in the article.