AI or pants 👖
We all have that friend who can’t stop talking about how much they’ve made on their single share of Nvidia.
One stock you probably haven’t heard much about: Abercrombie & Fitch
Formerly, the most hated retailer, which always left you out of breath from choking on their cheap perfume when you exited the store, was one of the best-performing stocks.
In 2023, Abercrombie & Fitch’s stock gained 285%, outpacing Nvidia’s 239% surge, and the momentum has carried into 2024 Abercrombie & Fitch’s stock is up 110%+ year-to-date.
Several changes have led to renewed optimism regarding the brand:
- Shifted its customer demographic away from dressing teens in favor of young graduates and adults entering the workforce
- Ditched the loud music and thick perfume at their retail locations
- Overhauled their inventory to include new sizes and apparel lines with the help of generative AI technology
Who knew Abercrombie & Fitch’s modern chino pants could be as impactful as Nvidia’s futuristic computer chips? At least, that’s how the market is treating it.
