Business
Abercrombie & Fitch store
People walk past an Abercrombie & Fitch store on New York’s Fifth Avenue in 2022. (Photo by Michael M. Santiago/Getty Images)

Abercrombie keeps up the comeback with another billion-dollar quarter

Denim, dresses, and diversifying to wedding wear are driving growth, but investors are still "underwhelmed.”

Nia Warfield, Yiwen Lu

Retail’s biggest comeback story is stitching up even more gains: Abercrombie & Fitch reported record second-quarter revenue that beat Wall Street expectations and raised its sales outlook for the full year, despite an “increasingly uncertain environment.”

Sales for the quarter were $1.1 billion, marking A&F’s second billion-dollar quarter in a row. Operating income was $176 million, almost doubling last year’s $90 million, and net income more than doubled. Both the Abercrombie and Hollister brands saw double-digit sales growth in the second quarter, fueled by strong demand for denim and dresses during the summer and back-to-school season.

Despite all those numbers going up, the stock sank 15% after the retailer warned about increasing freight costs and slowing margin growth. Even with today’s decline, shares of A&F have been on a tear – they’re up 58% so far this year. That’s after soaring 285% in 2023 — more than the stock market’s all-star, Nvidia.

Adam Crisafulli, an analyst at Vital Knowledge, wrote in a note to clients that Abercrombie is held to a higher standard than most retailers because of its growth, and “people will probably be modestly underwhelmed” with the results.

Long known as a teen retailer, Abercrombie in recent years has started to diversify its offerings, sparking growth in both its men’s and women’s divisions. Since launching in March, A&F's wedding shop has exceeded expectations, with the company noting it has benefited as weddings turn into multi-day occasions. Last quarter, it added men's suits to the mix. 

Abercrombie also expanded its partnership with the NFL to cover all 32 teams and is planning to launch a new range of fall essentials like sweaters, hats, and outerwear.

Abercrombie’s results come during a big week for retail earnings, which could offer more clues to consumer confidence. American Eagle, Birkenstock, and Ulta Beauty all report Thursday.

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Starbucks issues apology after viral “Bearista” cup meltdown

Holiday cheer turned into chaos this week for Starbucks after the coffee giant’s new “Bearista” holiday cup sent fans into a frenzy. 

Dropped alongside its 2025 holiday menu, the $30 beanie-wearing glass bear tumbler sparked long lines, sellouts, and even in-store scuffles before Starbucks stepped in with an apology.

“The excitement for our merchandise exceeded even our biggest expectations,” the company said in a statement to People. “Despite shipping more Bearista cups to our coffeehouses than almost any other item this holiday season, the Bearista cup and some other items sold out fast.”

Within hours of launch, frustrated fans flooded Starbucks’ social media pages and even store hotlines. Some customers waited in line before dawn and others said their stores received only a handful of cups. In one Houston location, the craze even turned physical, with police reportedly called to break up a brawl. Meanwhile, the cup is already reselling on sites like eBay, with listings topping $600.

“We understand many customers were excited about the Bearista cup and apologize for the disappointment this may have caused,” Starbucks said. While in-store customers may be upset, investors seem happy about the viral hit, as the stock has risen over 3% on Friday.

If you’re still hoping for a Bearista at market price, that may not be on order: the chain didn’t disclose how many cups were made or whether a restock is planned.

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Target tells workers to smile, wave, and greet shoppers if they come within 10 feet of them

Target just rolled out a new rule for store employees: smile, make eye contact, and greet or wave when a shopper comes within 10 feet — and if they get closer, within four feet, ask whether they need help or how their day is going, according to a new Bloomberg report.

Dubbed the 10-4 program internally, the rule mirrors rival Walmarts own 10-foot policy, formalizing behavior Target had previously only encouraged.

business

Monster surges on energy drink buzz, while Celsius sinks on distribution concerns

Shares of Monster Beverage climbed 5% after the bell on Thursday, and held most of those gains into early trading on Friday, following strong Q3 results.

The energy drink giant topped market expectations, with quarterly sales up 17% year over year to $2.2 billion and adjusted net profits growing 41% to $524.5 million — 11% ahead of Wall Street’s estimates. In the report, Monster highlighted its zero-sugar line and new product launches, with a stack of novel flavors already released this year, as bright spots.

During a call with analysts, Chief Executive Hilton Schlosberg said that the global energy drink category “remains healthy with robust growth,” The Wall Street Journal reported, adding that demand for more affordable caffeinated drinks is rising as coffee has become “really expensive.”

Meanwhile, rival beverage business Celsius saw shares fall as much as 23% on its Q3 results yesterday — despite beating expectations, with revenue jumping 173% — largely due to concerns about a change in the company’s distribution channel, as its newly acquired Alani Nu brand joins the PepsiCo distribution network.

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