Several retailers reported their holiday results, revealing a strong shopping season but not exceeding expectations. Lululemon, facing leadership changes and an upcoming proxy battle, expects fourth-quarter sales of approximately $3.6 billion and earnings per share of around $4.76, aligning with its earlier guidance. Abercrombie & Fitch lowered its sales forecast despite reporting record quarter-to-date sales, projecting a 6% sales increase instead of 6-7%. Meanwhile, American Eagle and Five Below outperformed predictions, with American Eagle expecting strong fourth-quarter operating income and Five Below raising its sales forecast considerably.
Birkenstock’s expected sales rose 11% but disappointed investors, leading to a stock drop. Savers Value Village posted an 8.4% sales increase but maintained its financial outlook. Analysts predict that while standout companies will show strong growth, overall retail results may be strong without significant increases in consumer spending, with the National Retail Federation projecting a retail sales increase of 3.7-4.2%. Concerns persist about the impact of higher prices and tariffs on actual volume growth.
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