Abercrombie & Fitch Co. (NYSE:ANF) Hollister Expands Line of Performance Jeans

Andy Parker
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Abercrombie & Fitch Co. (NYSE:ANF) Hollister Expands Line of Performance Jeans

Hollister, a division of Abercrombie & Fitch Co. (NYSE:ANF), has expanded its line of performance jeans while incorporating a new technology in the products to enhance their functionality. The new jeans, Hollister said in a press release, are aimed at guys and girls and they feature COOLMAX® ALL SEASON technology from INVISTA for lasting fit and comfort.

According to Hollister, the COOLMAX® ALL SEASON technology helps to keep the body cool and dry on hot days by moving moisture away from the body. Additionally, the technology is designed to keep the body warm when it is cold, leading to year-round comfort for the wearer.

The benefits are permanent

Because the cooling and warming effects of COOLMAX® ALL SEASON technology are built into the fiber structure, Hollister said the benefits are permanent because they don’t wash out.

Given that integrating performance fiber to enhance functionality is one of the hot trends in denim category currently, Hollister wants to be the leader in that trend as it hopes to woo more customers to its products and boost sales.

 “Our goal with the innovative COOLMAX® ALL SEASON technology is to provide products that fit the needs of our customer’s on-the-go lifestyle,” Hollister’s brand president Kristin Scott said.

Coping with stiff competition

Abercrombie & Fitch is struggling with stiff competition. Although the Hollister brand reported flat same-store sales growth in 3Q16, the Abercrombie brand posted a 14% drop in same-store sales in that period. As such, same-store sales at Abercrombie & Fitch declined 6%, and overall sales decreased to $821.7 million from $878.6 million a year earlier.

ANF’s weak sales can be linked to tough competition from American Eagle Outfitters (NYSE:AEO) and H&M Hennes & Mauritz. As such, Jefferies analysts recently downgraded the stock to hold from buy.

Stock has dipped 52%

Abercrombie & Fitch stock is down more than 52% over the last 12 months. But the stock rose more than 1.4% to $12.05 in the last session, supported by optimism over Hollister’s expanded line of jeans.