Markets
ANF

Venmo Partnership Proves Abercrombie & Fitch's Millennial Focus

It was just 2016 when Abercrombie & Fitch Co. ANF was proclaimed the "most hated retailer in the U.S" and looked to be on the brink of death. At the end of that year, shares of A&F were trading at around $12 per share, a far cry from the $60 to $70 stock price seen in 2011.

Fast forward to present times, and things couldn't look more different.

A&F today announced it is partnering with Paypal's PYPL Venmo to be the first specialty retailer to let customers purchase products directly through their Venmo accounts. Mobile shoppers will now be able to use Venmo in both the Abercrombie & Fitch and Hollister apps to purchase products quicker than ever on their phones.

The stock has surged 2.25% through late-afternoon hours on reports of the news. The day's price jump continues the impressive performance so far this year, as shares have risen by over 50%.

The retailer has been able to achieve this momentum by catering to Millennials and younger customers through expanding its mobile presence, improving its direct-to-consumer (DTC) business, and other youth-focused initiatives.

This is evident from the fact that more than two-thirds of digital traffic in the first quarter came from mobile for Abercrombie & Fitch. Further, the DTC business accounted for nearly 27% of net sales, recording a 14% increase in comparable sales.

The efforts have led A&F Co. to not only remove its "most hated retailer" image, but actually outpace the "Retail - Apparel and Shoes" industry in 2018.

Teaming up with Venmo is a strategic move that will keep A&F heading in the direction of modernization and youth, which has clearly been successful. Joanne Crevoiserat, Chief Operating Officer of A&F, made that mission clear, stating, We are excited about our Venmo integration, as we know Venmo is an increasingly popular payment option among our millennial and Gen Z customer bases."

Ultimately, the partnership with Venmo is another significant step towards A&F proving that it is no longer a store of the past.

The Hottest Tech Mega-Trend of All

Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.

See Zacks' 3 Best Stocks to Play This Trend >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

PayPal Holdings, Inc. (PYPL): Free Stock Analysis Report

Abercrombie & Fitch Company (ANF): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

ANF PYPL

Other Topics

Stocks

Latest Markets Videos

    Zacks

    Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at www.zacks.com.

    Learn More