You knew it, just when you finally got around to gathering all the old clothes you had stowed away for years and took them to Goodwill, it happens. The super-hot fashions this spring are everything you just got rid of. You know, everything from destroyed and flared legged denim jeans, to grunge flannel and high-waisted short-shorts. Well don’t despair, all the cool clothes you wore when you were younger are making a comeback, and the top retailers have them.

A new research report from Jefferies goes through the hot new retro fashions and the stores that have them on sale now. Toss in the fact that while oil has bounced well of the lows, gasoline is still cheap and is expected to stay that way through the summer, giving consumers spending cash. We screened the Jefferies retail research universe for the stores not only with the hot fashions, but also those that have strong product presence and that are also rated Buy.

Abercrombie & Fitch

This top retailer is making the most of the retro fashion rage, and it also was added recently to the Jefferies Franchise Pick Stocks list. Abercrombie & Fitch Co. (NYSE: ANF) is a leading global specialty retailer of high-quality, casual apparel for men, women and kids with an active, youthful lifestyle, under its Abercrombie & Fitch, Abercrombie Kids and Hollister brands. At the end of the fiscal year, the company operated 754 stores in the United States and 178 stores across Canada, Europe, Asia and the Middle East. The company also operates e-commerce websites.

This is one of the top retailers featuring the off-the-shoulder tops that were so big back in the day. According to the analysts, this is one of the biggest trends for spring 2016, and it has been interpreted for nearly every demographic, ranging from teens to young adults. Add in the fact that demand for the retailer’s offerings has improved, with the company’s Hollister brand reporting positive comparable sales, and the overall turnaround potential is huge.

Abercrombie and Fitch has slowly but surely started to rebuild what once was a very dominant brand, and the company has been utilizing its huge user following on Facebook to help drive traffic and product awareness.

Shareholders are paid a 2.54% dividend. The Jefferies price target for the stock is $50. The Thomson/First Call consensus target is $28.68, but the shares closed above that on Thursday at $31.54.

American Eagle Outfitters

This top retail stock had been acting much better since bouncing off lows posted in early February. American Eagle Outfitters Inc. (NYSE: AEO) is a leading global specialty retailer offering high-quality, on-trend clothing, accessories and personal care products at affordable prices under its American Eagle Outfitters and Aerie brands.

The company operates more than 1,000 stores in the United States, Canada, Mexico, China, Hong Kong and the United Kingdom, and it ships to 81 countries worldwide through its websites. American Eagle Outfitters and Aerie merchandise also is available at 119 international stores operated by licensees in 18 countries.

Top Wall Street analysts have highlighted that the company offers among the clothing sector’s best denim execution and on-trend fashion, and those positives could drive traffic upside, as well as be long-term drivers of international, Aerie, digital and omni inventory. Good execution, solid inventory control and the trend for old-school denim fashions are all positives.

American Eagle investors are paid a solid 3% dividend. The Jefferies price target is set at $24. The consensus price objective is at $18.21. Shares closed most recently at $16.67 apiece.
The Gap

This top retailer could be poised to benefit from the extra consumer spending. The Gap Inc. (NYSE: GPS) is a leading global retailer offering clothing, accessories and personal care products for men, women and children under the Gap, Banana Republic, Old Navy, Athleta and Intermix brands. Fiscal year 2015 net sales were $15.8 billion. Gap products are available for purchase in more than 90 countries worldwide through about 3,300 company-operated stores, over 400 franchise stores and e-commerce sites.

The company reported that net sales for the four weeks ended February 27, 2016, were $888 million, compared with net sales of $918 million for the four-week period ended February 28, 2015. On a constant currency basis, February 2016 net sales decreased 2% compared with last year. Company executives are encouraged by the initial customer response to Gap brand’s spring collection, and they remain focused on improving results across the portfolio.

Gap shareholders are paid a solid 3.13% dividend. The $34 Jefferies price target is well above the consensus target of $26.71. But note that the stock closed on Thursday at $29.40.

Urban Outfitters

This is another top company going back to the future, reviving the very hot halter dresses. Urban Outfitters Inc. (NASDAQ: URBN) is an innovative specialty retail company that offers a variety of lifestyle merchandise to highly defined customer niches through 240 Urban Outfitters stores in the United States, Canada and Europe and catalogs and websites; 218 Anthropologie Group stores in the United States, Canada and Europe and catalogs and websites; 114 Free People stores in the United States and Canada and catalogs and websites; and Free People wholesale, which sells its product to approximately 1,800 specialty stores and select department stores worldwide.

The company recently hired Celect to help optimize in-store assortments. Celect is helping retailers worldwide make improved decisions about what to buy and allocate to stores. Leveraging existing customer data, Celect takes the guesswork out of the merchandise planning and allocation process through advanced machine learning and predictive analytics.

The Jefferies price target is posted at $38, above the consensus price objective of $32.62. The stock closed most recently at $33.09 per share.

Just when you think you will never see it show up again, what was old becomes new. The good thing is for younger consumers, it’s all new to them and cool. These top retailers could have some serious upside for growth stock investors.

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