Mall Brands Take the Stage as Abercrombie and Gap Report Earnings

Abercrombie & Fitch and Gap will report earnings next week, throwing the spotlight on how mid-market American apparel brands are faring.

Gen Z is rediscovering brands that had lost their edge a decade ago, bringing some much-needed oxygen to labels like Abercrombie and Gap. Their earnings reports will offer a read on the potential staying power of the mall brands category, as well as how much the fresh attention is translating into sustained sales growth.

Abercrombie, which reports on Wednesday, has booked 14 straight quarters of revenue growth and is expected to extend the run. Analysts are forecasting a 2.8 percent sales increase over the quarter. For the full year, Abercrombie is targeting sales growth of between 3 percent and 5 percent.

Investors have begun to bet that the company’s turnaround is solidifying, with shares up more than a third in the past three months. They are still down about 15 percent this year.

Gap, which releases earnings on Thursday, is forecast to report quarterly revenue of about $3.7 billion, broadly in line with the same quarter last year.

Abercrombie: What to Look Out For

A tale of two brands. Abercrombie’s performance has been mixed in recent quarters, with its Hollister brand outperforming the group’s namesake label. Traffic at Abercrombie stores fell 4 percent in the second quarter and rose 13 percent at Hollister, according to Jefferies. Foot traffic is not always a proxy for sales, however, and Abercrombie’s prices are higher than those of its stablemate. Spending at Abercrombie stores and online rose 6 percent in the second quarter and fell 2 percent at Hollister, according to Advan Research, which tracks spending from 120 million credit cards in the US.

The NFL. Abercrombie became the NFL’s “official fashion partner” in 2025 and sells products for all 32 NFL teams. The brand and the football league hosted a fashion show during Super Bowl weekend in February. Six months on, investors will be eager for an update on how well the products are selling and if there is scope to take the partnership further.

China and a potential sale. Abercrombie is conducting a review of its assets in China that could lead to the sale of a stake in the business, Bloomberg reported earlier this month. Even if the company does not address the potential sale in the earnings release, executives will likely face questions from analysts about the health of its business in China. In March, Abercrombie said it was reviewing its business across Asia.

Gap: What to Look Out For

Old Navy dependence. The pace of growth at Old Navy, which accounts for 57 percent of Gap’s revenue, will be a key focus. The Gap brand, 23 percent of total revenue, has been growing faster than Old Navy — a divergence that increased considerably last quarter, with Gap advancing 10 percent and Old Navy up 1 percent.

The Hailey Bieber collaboration. While the Gap brand’s tie-up with beauty entrepreneur Hailey Bieber for a jeans line may be limited, the high profile campaign could help build momentum. Investors will be watching for any signs that the partnership is driving traffic and sales, as well as an update on any other celebrity collaborations in the pipeline.