A spectacular success for Generation Z's favorite brand. They've never seen results like this before.

Abercrombie & Fitch boasted record sales in the second quarter, which led to an increase in its annual forecast. Unfortunately, sales at its core brand weren't as strong. This was due to the performance of Hollister, its sister brand, which targets teenagers.

Sometimes, even when things aren't going well, they're still... good. Sales growth at American clothing brand Abercrombie & Fitch slowed in the second fiscal quarter, and it seems that after last year's boom, a period of... drought has come. During this period, Abercrombie's sales fell by 5 percent, despite the brand recording a 26 percent increase during the same period a year ago.

Sales growth at American clothing brand Abercrombie & Fitch slowed in the fiscal second quarter. Photo: Chris Redan / Shutterstock

But the company is boasting… record results. Specifically, the second-best quarter in history . How is that possible? Sister brand Hollister , known for its clothing for teenagers, is saving the day.

Abercrombie & Fitch's sales rose 7 percent overall, driven by a 19 percent increase at Hollister . CEO Fran Horowitz believes this demonstrates the company's true resilience in the face of constant market change.

“We achieved record net sales in the second quarter, exceeding our expectations, with a 7 percent increase compared to last year,” she said.

So what's next? The company has raised its full-year revenue forecast. While it was initially predicted to end 2025 with growth of around 3-6 percent, analysts are now targeting 5-7 percent.

Hollister was founded in 2000. Originally, the brand's clothing design was to be inspired by Southern California , and the products themselves were targeted at young people aged 14–18. In this case, Abercrombie & Fitch also opted for slightly lower-quality materials compared to its main brand, and thus lower prices.

Hollister became an immediate success, as confirmed only by the latest financial results.

In addition to the youth brand, Abercrombie & Fitch is also developing its children's line, Abercrombie Kids , and has entered the wholesale channel with it, which, according to financial analysts, is a very good step.

It's worth noting that the children's clothing market was worth $82.1 billion in the United States last year. It's definitely worth investing in...