The retail landscape of 2025 to early 2026 has been defined by dramatic shifts in consumer loyalty and the aggressive restructuring of legacy brands. While many names faced the brink of collapse or bankruptcy in 2024/2025, a select few have successfully pivoted, leveraging new leadership, digital first strategies, and leaner operational models. This report ranks the top 10 turnaround stories based on their Revenue Growth (2025/26) and Operational Recovery Metrics (such as store re openings or subscription stability).
Executive Summary: The 2026 Turnaround Index
The following table ranks brands that have moved from “distress” to “momentum” through early 2026.
| Rank | Brand | Status in 2024/2025 | Turnaround Strategy | Recovery Metric (2025/26) |
| 1 | Abercrombie & Fitch | Brand Fatigue / Declining Sales | “Millennial Pivot” & Lifestyle Expansion | +14% Sales Growth (Record High) |
| 2 | Adidas | Yeezy Fallout / Inventory Glut | “Bjørn Gulden Effect” & Terrace Trend | +11% Q4 Revenue (Record €30B Year) |
| 3 | Gap Inc. | Leadership Void / Stale Brand | Richard Dickson’s “Playbook” & Viral Marketing | +6% Revenue Growth (Old Navy Lead) |
| 4 | Victoria’s Secret | Cultural Irrelevance / Sales Slump | Brand Re-imagining & Product Innovation | +9% Sales Jump (Q3 2025) |
| 5 | Peloton | Post-Pandemic Crash / Heavy Debt | Subscription-First & Cost-Cutting | Positive Net Income ($14M Q1 ’26) |
| 6 | J.Crew | Post-Bankruptcy Restructuring | E-commerce Expansion & Scarcity Model | +9% Projected Sales Growth |
| 7 | Farfetch | Near-Collapse / Acquired by Coupang | Coupang Integration & Full-Price Focus | 41% Loss Reduction (UK) / Q4 Profit |
| 8 | The Body Shop | UK Administration / Market Exit | E-commerce Relaunch & Purpose-Led Pivot | US E-commerce Relaunch (Oct ’25) |
| 9 | Beyond Inc. (BB&B) | Bankruptcy / Asset Sale | Digital Resurrection (Overstock Merger) | Q1 2026 Revenue Target: $1.04B |
| 10 | Under Armour | Leadership Turmoil / Sales Slump | Kevin Plank’s Return & Premium Pivot | Forecasted 4-5% Margin Recovery |
Brief Brand Analysis
1. Abercrombie & Fitch
Abercrombie & Fitch has gone from being the poster child for being “stuck in the 2000s” to completing one of the most impressive turnarounds in modern retail. By shifting away from teen centric logo mania and repositioning itself as a millennial focused lifestyle brand with concepts like The A&F Wedding Shop and Best Dressed Guest, it has tapped into a new, higher spending audience that sees the brand as relevant again. In 2026, the company reported record net sales of $4.95 billion for FY2025, with growth continuing at roughly 5% to 6% into the year, making it the industry benchmark for brand resurrection.
2. Adidas
Adidas was coming off a low point after facing a €1.2 billion inventory crisis following the end of its Yeezy partnership in 2023. Under CEO Bjørn Gulden, the company refocused on core sport and “Terrace” trends, reviving icons like the Samba, Gazelle, and Spezial, while clearing remaining Yeezy inventory in a controlled way and doubling down on franchise footwear. By 2026, Adidas reported record revenues for 2025, including an 11% jump in Q4 2025, and launched a €1 billion share buyback in January 2026, signaling that its recovery is now in full swing.
3. Gap Inc.
Gap Inc., including Gap, Old Navy, and Banana Republic, had suffered from leadership churn and chronic discounting that pushed the portfolio toward terminal decline. With former Mattel COO Richard Dickson at the helm, the group implemented a new playbook centered on cultural relevance, highlighted by viral moments like the “Milkshake” campaign and refreshed creative leadership at Old Navy. On the back of a strong 2025, Gap Inc. raised its 2026 guidance, with revenue growth around 6% in key quarters and Old Navy reclaiming its role as a value fashion powerhouse.
4. Victoria’s Secret
Victoria’s Secret had become a cautionary tale of outdated marketing, with years of declining same store sales and widespread store closures. Under CEO Hillary Super, the brand returned to its fashion show roots but reframed them through a modern, inclusive lens, while also doubling down on beauty and the Pink line to drive more frequent customer visits. In 2026, the business is finally regaining momentum, posting a standout 9% sales increase in Q3 2025 with same store sales up 8%, and positioning itself once again as a serious player in the U.S. intimate apparel and beauty market.
5. Peloton
Peloton, once a pandemic darling, saw its stock drop by about 90% and faced existential questions about its viability as a standalone company in 2024. The brand responded by transforming itself from a hardware first business into a subscription led wellness platform, cutting costs aggressively and prioritizing high margin digital memberships. In Q1 2026, Peloton reported a positive net income of $14 million, its first profitable quarter in years, with subscriptions stabilizing around 2.8 million members, marking a historic pivot in its business model.
6. J.Crew
J.Crew emerged from its 2020 bankruptcy mired in an identity crisis and struggling to compete with the rise of quiet luxury and Scandinavian minimalism. The company has since leaned back into its heritage aesthetic, polished Americana, while embracing a digital first, e commerce heavy distribution model that relies on scarcity drops and elevated basics to re energize its core customer. For 2025/26, J.Crew is projecting about 9% sales growth and is on track to reach roughly $3 billion in annual sales, signaling a full recovery from its lowest point.
7. Farfetch
Farfetch was on the brink of collapse in late 2023 before being “rescued” through a controversial acquisition by Coupang in South Korea. The new owner stripped away non core assets and refocused the business on its core marketplace technology, shifting away from heavy discounting and integrating operations into Coupang’s powerful logistics network. By 2025, Farfetch UK had narrowed its losses by 41% and delivered a profitable fourth quarter, with Coupang leadership signaling that the turnaround is firmly taking hold.
8. The Body Shop
The Body Shop, a British beauty icon, entered administration in early 2024, shutting hundreds of UK stores and fully exiting the U.S. market. Under a new investment group, the brand has pursued a lean relaunch strategy centered on its ethical, purpose driven heritage while pivoting to an e commerce first approach in major markets. In October 2025, it relaunched its U.S. e‑commerce platform and has begun selectively reopening experience led stores in the UK through early 2026, signaling a carefully measured return.
9. Beyond Inc. (Bed Bath & Beyond)
Beyond Inc., the company formerly known as Overstock.com, stepped in after Bed Bath & Beyond declared bankruptcy and liquidated all physical locations in 2023. By acquiring the intellectual property and rebranding as Beyond Inc., it effectively resurrected the Bed Bath & Beyond name as a digital only home goods player, leveraging the legacy brand’s recognition online. For Q1 2026, Beyond Inc. is targeting approximately $1.04 billion in revenue, indicating early success in migrating the former in store customer base to its new e‑commerce platform.
10. Under Armour
Under Armour spent years battling stagnant growth and leadership instability, including the exit and subsequent return of founder Kevin Plank, which left it far behind Nike and Adidas. With Plank back in a focused leadership role, the brand is prioritizing premium performance products and genuine innovation, while deliberately cutting low margin wholesale accounts to shore up brand equity in what it calls a “reconstruction year.” Revenue is expected to decline 4% to 5% in 2026 as part of this cleanup, but margins are expanding, and many analysts see this as the groundwork for a meaningful breakout in 2027.
The “Turnaround Playbook” of 2026
The successful resurrections of 2026 share three common traits:
1. Leadership Stability: Brands like Gap and Adidas succeeded because they brought in “proven” turnaround CEOs (Dickson and Gulden).
2. Community over Mass: A&F and Victoria’s Secret stopped trying to please everyone and focused on a specific, loyal community.
3. The “Lean” Model: Whether it’s Farfetch’s Coupang integration or Peloton’s subscription shift, the survivors are those that cut the “fat” of physical retail and doubled down on high margin digital revenue.
