With Abercrombie & Fitch Sitting Pretty, Its Sister Brands Get a Makeover

While flagship banner Abercrombie & Fitch garnered most of the attention—going from one of the most disliked brands in America to a successful turnaround—its parent company has been hard at work reviving the rest of its portfolio. Much of that progress came to fruition this past year, namely in the form of a relaunch of athleisure and intimates brand Gilly Hicks that, along with recently launched apparel label Social Tourist, is part of the brand's Hollister business. Sales at Gilly Hicks, which is squarely aimed at Gen Z consumers, rose 30% year-over-year in the second quarter, with growth across both digital and stores, according to the company. In fact, the increase marked the fifth consecutive quarter of double-digit sales gains for the label. That performance coupled with revenue from Social Tourist, which was created with social media mavens Charli and Dixie D'Amelio, in turn boosted Hollister’s sales by 20% year-over-year in the second quarter as well. As those numbers indicate, the strategy appears to be working. And so far investors agree, with the apparel group's shares currently trading near their 52-week high of $47.29. Meet the new Gilly Hicks Some of the most profound changes taking place in recent months have been at Gilly Hicks, given the brand's product line is the biggest opportunity for its parent company. "There is immense opportunity for Gilly Hicks within the Abercrombie & Fitch Co. portfolio. It's one of our key growth strategies as a company. It's our smallest brand currently, and we have very big plans for it," Kim Dolder, group vp and general manager of Gilly Hicks, told Adweek. Those moves include expanding its assortment to offer new fabrics and a wider range of sizes, as well as introducing a revamped digital experience and a new store prototype, which will roll out globally beginning in 2022. The latter is described as a cozy lounge merchandised according to aesthetic and proportion rather than gender. Indeed, the thinking is Gilly Hicks could grow over time to be equivalent in size to Abercrombie & Fitch or Hollister, she said. "Gilly is really our underwear, loungewear and activewear brand. These are categories that are not focal in the other brands," Dolder said. "And then the brand positioning for Gilly is all around bringing a daily dose of happy to Gen Z. So it's all about creating a happy place." Gilly Hicks wants to help you "find your happy place," the tagline of the brand's latest marketing. Dolder, in fact, returned to Abercrombie & Fitch to play an instrumental role in the brand's relaunch after being part of the group that created Gilly Hicks back in 2008. "I have been many places since then, but came full circle for the opportunity to sort of reinvent the brand," she said. One of the more noticeable shifts for Gilly Hicks is it's now gender inclusive, whereas it once was a brand for women. In another switch, the athleisure and intimates brand is also size inclusive, with products for curvy consumers and a technology called Future Stretch, which can flex far beyond its size. "We wanted to make sure that we're positioning ourselves in a way that really mattered for Gen Z. And we started talking to Gen Z, and we realized that the brand had some evolving to do to be more inclusive," Dolder elaborated. Social Tourist is banking on digital media Then there is Social Tourist, an apparel brand created in partnership with the D'Amelio sisters, which was introduced in late May and is now sold in Hollister stores and online. The label sells T-shirts, hoodies, joggers and fleece. Between Charli and Dixie D'Amelio, the sisters have more than 250 million followers across their social media accounts, according to Abercrombie & Fitch Co. (Charli was the first TikTok user to surpass 100 million followers.) That's a powerful marketing tool for the burgeoning fashion line. To take advantage, the brand debuted one of its product drops via a shoppable fashion show on TikTok, attracting 1.3 million unique visitors. From that, the company is gaining intel on Gen Z fashion trends, social commerce and the growth of TikTok, which provides a halo effect for Hollister, according to a spokesperson. What's more, the brand's wares are inspired by the pair's social media experiences. "Charli and Dixie are the quintessential example of what it’s like to grow up in the digital world, and we've always believed they authentically represent our teen customers’ mindset both online and in real life," said Kristin Scott, president of global brands at Abercrombie, in a statement. The D'Amelio sisters previously served as consultants on the brand's denim line and launched the #MoreHappyDenimDance TikTok challenge, which accrued over 5.4 billion views worldwide. Social Tourist and Gilly Hicks are two moving pieces in an effort to differentiate Hollister, which itself is being aimed at a younger Gen Z audience, from Abercrombie & Fitch, which now appeals to millennials. Gap Skips Models, Putting Fall Styles on Change-Makers