This Throwback Clothing Brand Is Cool Again, And The Stock Is Up More Than 100% This Year

If you were a teenager in the mid-2000s, there were few cooler places to be than an Abercrombie or Hollister store at your local mall. You’d get hit with the almost overwhelming smell of cologne as soon as you walked in and if that wasn’t enough stimulation, then the pictures of nearly-naked models plastered throughout the store were surely enough to make a teenager want to come back.

But, like most things teenagers find "cool," the fad fizzled out. By 2015, Abercrombie & Fitch Co ANF was so 2000 late. Its stock drew down more than 85% from 2011 to 2017. Keep in mind, that while Abercrombie’s stock was hitting its lows in 2017, the S&P 500 was making new all-time highs. 

But, Abecrombie’s leaders decided to rebrand the company. The company’s past is marred with accusations of discrimination and marketing exclusively to skinny customers. But, the company is now under the leadership of Fran Horowitz, and has worked to make the company more inclusive and to market to a wider audience. 

The clothes themselves look remarkably different from clothes you’d find in an Abercrombie store in the mid-2000s. Gone are the big, obnoxious logos spread across the company’s t-shirts. Instead, the company is making more stylish, sleek-looking clothes that are casual, but still great for going out. The women’s clothes look similar to what you would find at an Aritizia Inc ATZAF boutique. 

Now, the stock is making new 52-week highs after a strong earnings report released on Wednesday. The company beat EPS expectations as well as raising guidance, based on strong growth and demand, according to Benzinga Pro. 

“We continue to see strong customer receptivity of our brands and product, led by 26% net sales growth in Abercrombie brands,” Horowitz said. “These strong results showcase the power of our playbook and our team’s ability to align product, voice, and experience to meet our customers’ needs.” 

Other companies looking to rebrand should study Abercrombie’s playbook. It’s hard enough to get teenagers to think your brand is cool. It’s even harder to do it twice, which Abercrombie has proved able to do.
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