Big-name retailers like Lululemon, Abercrombie & Fitch, and American Eagle raised their fourth-quarter guidance on Monday, but shares fell as Wall Street came away unimpressed.
The holiday shopping season may have been better than expected, with some early reads signaling a slight uptick in sales. However, the overall results were far from the blowout numbers seen in previous years.
Lululemon, which raised its sales growth outlook to 11-12%, saw its stock climb nearly 1% on Monday. Abercrombie & Fitch also hiked its guidance, but its stock tumbled 15%. American Eagle raised its fourth-quarter outlook, with shares falling about 4%.
Urban Outfitters reported strong holiday results, with sales growing 10% and comparable retail segment sales rising 6%. However, the company’s namesake banner saw comparable sales fall 4%, while Macy’s reported weaker-than-expected results.
The National Retail Federation had expected sales to grow between 2.5% and 3.5%, but early reads suggest the holiday season may be a bit better than expected. Mastercard SpendingPulse reported that retail sales rose 3.8% year over year, excluding automotive sales.
Despite the mixed results, many retailers are focusing on boosting profits in the long term. Abercrombie & Fitch CEO Fran Horowitz said the company will prioritize driving shareholder value through sustainable growth and margin expansion.
Source: https://www.cnbc.com/2025/01/13/lululemon-releases-holiday-sales-raises-earnings-and-revenue-guidance.html