Can ANF's Hollister Keep 19% Comp Growth Into the Back Half of 2025?

Core Insights - Abercrombie & Fitch Co. (ANF) achieved record results in Q2 of fiscal 2025, with sales of $1.21 billion and earnings per share of $2.32, marking its 11th consecutive quarter of growth [1][8] - Hollister was a significant contributor, posting a 19% increase in net sales and comparable sales, highlighting its role as a key growth engine for the company [1][8] Group 1: Performance Highlights - The company reported $1.21 billion in sales and $2.32 EPS in Q2, continuing its growth streak for 11 quarters [1][8] - Hollister's performance was particularly strong, with a 19% increase in net sales and comparable sales, driven by a focus on teen customers and cultural relevance [2][8] Group 2: Strategic Initiatives - Abercrombie & Fitch plans to leverage Hollister's strength by maintaining clean inventory levels and enhancing brand activations, particularly during seasonal opportunities like back-to-school and holiday [3] - The brand's ability to quickly adapt to trends and its omnichannel strategy integrating physical and digital retail positions it well for sustained growth [3] Group 3: Market Position and Valuation - ANF's stock has gained 9.7% over the past three months, slightly underperforming the industry and broader Retail-Wholesale sector [4] - The company trades at a forward P/E ratio of 8.61X, which is lower than the industry average of 18.84X and the sector average of 24.93X, indicating a modest discount relative to peers [9]