Abercrombie & Fitch has raised its annual sales forecast, citing strong demand for its Hollister brand of dresses and jeans, as shoppers continue to spend on trend-driven apparel despite price increases.

The U.S. apparel retailer, whose jeans average around $100, has driven growth at both its flagship Abercrombie & Fitch line and Hollister by targeting affluent female shoppers, who comprise the majority of its customer base.

The company now expects net sales for fiscal year 2025 to grow between 5% and 7%, compared with its previous forecast of 3% to 6%.

The outlook factors in approximately $90 million in costs associated with tariffs on goods imported into the United States, based on trade policies as of August 25, the company stated.

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