12 Best Apparel Stocks to Invest In

6. Abercrombie & Fitch Co. (NYSE:ANF)

Number of Hedge Fund Holders: 51

Abercrombie & Fitch Co. (NYSE:ANF) is a global omnichannel retailer that offers an assortment of apparel, personal care products, and accessories for women, men, and kids. Its brand portfolio includes Abercrombie brands, which includes Abercrombie & Fitch and abercrombie kids, and Hollister brands, including Hollister and Gilly Hicks.

The company delivered net sales growth of 9% in fiscal Q4 2024, with comparable sales growth of 14%. Its full-year net sales reached $4.95 billion, up 16% compared to 2023. This growth was attributed to comparable sales growth of 17%, with double-digit comparable sales growth across regions and brands.

Abercrombie & Fitch Co. (NYSE:ANF) has a strong brand portfolio that is increasingly resonating with consumers. The Abercrombie brands delivered a 16% full-year 2024 net sales growth on comparable sales of 15%, while the Hollister brands grew net sales by 15% on comparable sales of 19%. The company’s full-year 2025 outlook expects a net sales growth of 3% to 5% and an operating margin of 14% to 15%. Abercrombie & Fitch Co. (NYSE:ANF) also announced a new $1.3 billion share repurchase authorization and expects $400 million in share repurchases for 2025.

Carillon Eagle Small Cap Growth Fund stated the following regarding Abercrombie & Fitch Co. (NYSE:ANF) in its Q3 2024 investor letter:

“Abercrombie & Fitch Co. (NYSE:ANF) is a global multi-brand omnichannel specialty retailer of apparel, personal care products, and accessories for men, women, and kids. The stock lagged during the period despite reporting strong quarterly results and lifting forward guidance. We believe the performance is more a result of elevated investor expectations than any weakening of the underlying fundamentals, which we believe continue to remain strong.”