Hot Retailers Selling Retro Spring/Summer Fashions: 4 to Buy Now

Retail

Published: April 1, 2016 10:35 am

Last Updated: January 13, 2020 11:16 am

You knew it, just when you finally got around to gathering all the old clothes you had stowed away for years and took them to Goodwill, it happens. The super-hot fashions this spring are everything you just got rid of. You know, everything from destroyed and flared legged denim jeans, to grunge flannel and high-waisted short-shorts. Well don’t despair, all the cool clothes you wore when you were younger are making a comeback, and the top retailers have them.

A new research report from Jefferies goes through the hot new retro fashions and the stores that have them on sale now. Toss in the fact that while oil has bounced well of the lows, gasoline is still cheap and is expected to stay that way through the summer, giving consumers spending cash. We screened the Jefferies retail research universe for the stores not only with the hot fashions, but also those that have strong product presence and that are also rated Buy.

Abercrombie & Fitch

This top retailer is making the most of the retro fashion rage, and it also was added recently to the Jefferies Franchise Pick Stocks list. Abercrombie & Fitch Co. (NYSE: ANF) is a leading global specialty retailer of high-quality, casual apparel for men, women and kids with an active, youthful lifestyle, under its Abercrombie & Fitch, Abercrombie Kids and Hollister brands. At the end of the fiscal year, the company operated 754 stores in the United States and 178 stores across Canada, Europe, Asia and the Middle East. The company also operates e-commerce websites.

This is one of the top retailers featuring the off-the-shoulder tops that were so big back in the day. According to the analysts, this is one of the biggest trends for spring 2016, and it has been interpreted for nearly every demographic, ranging from teens to young adults. Add in the fact that demand for the retailer’s offerings has improved, with the company’s Hollister brand reporting positive comparable sales, and the overall turnaround potential is huge.

Abercrombie and Fitch has slowly but surely started to rebuild what once was a very dominant brand, and the company has been utilizing its huge user following on Facebook to help drive traffic and product awareness.

Shareholders are paid a 2.54% dividend. The Jefferies price target for the stock is $50. The Thomson/First Call consensus target is $28.68, but the shares closed above that on Thursday at $31.54.