Abercrombie & Fitch raised its annual sales forecast on Wednesday, driven by robust demand for Hollister dresses and denim jeans as shoppers prioritize spending on trendy apparel undeterred by price hikes.

The apparel retailer, whose denim jeans are priced at an average of $100, has driven growth at its eponymous and Hollister brands by targeting affluent female shoppers.

Well-heeled shoppers in the U.S. have so far shown little resistance to price hikes, as indicated by resilient spending on aspirational goods such as Birkenstock sandals and Bugaboo strollers.

"Abercrombie's results show that consumers remain willing to invest in premium apparel, especially when it reflects strong brand equity and trend relevance," Jefferies analyst Corey Tarlowe said.

However, higher tariffs on co

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