Abercrombie may be back. Will its shoppers stay?

Abercrombie & Fitch Co. (ANF) has experienced a resurgence in recent quarters, with its comparable sales rising 4% in the latest quarter, marking its first growth in over a year. This positive trend was reflected in the company's earnings release, which showed brand sales climbing 8% to $596.8 million. The improvements in customer demand were evident, as evidenced by the stock's 36% jump on August 26, 2026, following the company's strong second-quarter results.

The turnaround for Abercrombie has been attributed to a multi-faceted reinvention strategy, including the introduction of newer product categories, broader marketing efforts, and partnerships such as the brand's collaboration with the NFL. Additionally, the company has expanded its distribution channels, providing customers with more ways to access and purchase the brand.

However, the story of Abercrombie's comeback is not solely about the stock price. While the sales growth and margin improvements are encouraging, the question remains whether these positive trends will continue and translate into sustained customer loyalty. The company's Hollister brand, aimed at younger teen shoppers, showed a more modest 2% increase in comparable sales, but still grew overall.

Morgan Stanley analysts noted that the easing of year-over-year comparisons and rising margins were positive indicators for the reborn Abercrombie.

Chief Executive Fran Horowitz expressed optimism, stating that the customer is "really voting for us" and that the company's momentum has carried into the current quarter. The bank's investment arm also raised its price target on Abercrombie to $134, from $87, indicating a 54% increase, though they maintain an "Equal-weight" rating, suggesting that while the stock may not outperform its retail peers, the near-term outlook remains positive.

The bigger picture for Abercrombie is the potential for a sustained comeback, rather than just a temporary bump in the road. The success of this comeback will depend on whether the company can maintain these gains and continue to attract and retain customers beyond the favorable conditions that have led to the current positive outlook.