• by Sarah Mahoney , March 6, 2026

Plenty of observers expected soft numbers from apparel retailers this quarter, given how vocal consumers have been about pulling back their discretionary spending. But spending was alive and well at some of the most enduring mall-based chains.  Gap, Abercrombie & Fitch, Victoria's Secret and American Eagle Outfitters posted fourth-quarter results that ranged from solid to record-breaking, proving that the consumer pullback narrative is more complicated than it seems.

The Gap report was especially heartening, with eight consecutive quarters of comparable sales growth offering continued evidence that the retailer's transformation has taken hold. Net sales climbed 2% to $4.2 billion, with Old Navy up 3%, Gap up 7% and Banana Republic up 4%. Athleta remains the company’s unsolved problem, with sales dropping 10%.

"After years of weakness prior to his arrival in 2023, CEO Richard Dickson has made substantial progress controlling costs while improving Gap's omnichannel execution and relevance in the mass apparel space," writes Morningstar's David Swartz. Net income came in at $171 million, down from $206 million a year ago, and the company forecasts a 2%-3% sales gain for the coming year.

Abercrombie & Fitch extended its long-running hot streak with record fourth-quarter sales of $1.7 billion, a 5% gain, marking the company's 13th consecutive quarter of growth. Hollister rose 6% and Abercrombie was up 4%, with profits also coming in above expectations.

The bigger surprise was Victoria's Secret, a brand whose comeback has hit plenty of potholes, including fumbled brand repositioning. But a decision to double down on bra marketing and reinvigorate Pink paid off convincingly. Sales jumped 8% to $2.27 billion for the quarter, with comparable sales also rising 8%. The company is forecasting a sales gain of more than 10% for the coming quarter, and around 5% for the full year.

The most stunning number in the bunch, however, belongs to American Eagle Outfitters — specifically its Aerie division, which posted a dazzling 23% jump in comparable sales. That helped drive overall AEO revenue to $1.8 billion, a 10% gain for the company, with comparable sales at the American Eagle banner rising 2%. Aerie, which has built a loyal following around size-inclusive intimates and activewear, is clearly hitting a nerve with younger shoppers — the same ones supposedly tightening their belts. AEO is forecasting high single-digit sales gains for the coming quarter and mid-single digit increases for the full year.

Taken together, these results suggest that the consumer spending slowdown — real as it may be in other categories — has yet to reach shoppers with a strong affinity for their favorite apparel brands. Whether that holds as tariff pressures and economic uncertainty mount will be the story to watch in the quarters ahead.