Retailers Rejoice: Lululemon and Abercrombie Raise Q4 Outlooks
The holiday season has brought cheer to retailers Lululemon and Abercrombie & Fitch, as they raise their fourth-quarter outlooks following strong sales performances.
Lululemon Sees Sales Surge
Lululemon’s new outlook expects sales to grow between 11% and 12%, reaching $3.56 billion to $3.58 billion. Excluding an additional fiscal week in 2024, sales growth is expected to be between 6% and 7%. The company also hiked its profit outlook, forecasting earnings per share to be between $5.81 and $5.85.
Abercrombie’s Growth Slows
Abercrombie, on the other hand, expects its holiday quarter to be slightly better than anticipated, with net sales growth of between 7% and 8%. The company now expects full-year sales to grow 15%, a slight increase from previous guidance. While Abercrombie’s growth may be slowing, CEO Fran Horowitz remains confident in the company’s ability to drive long-term shareholder value.
Retailers Gather at ICR Conference
The retailers released their guidance ahead of the annual ICR conference in Orlando, where prominent U.S. retailers will announce early holiday results and meet with investors and analysts. The conference sets the tone for consumer deal-making and retailer performance at the start of the year.
Macy’s and Urban Outfitters Release Early Results
Macy’s, however, didn’t have good news to share, expecting sales to be at or slightly below its previously issued range. Urban Outfitters, on the other hand, saw net sales grow 10% compared to the year-ago period, driven by strong online sales.
Holiday Shopping Season Beats Expectations
Despite initial expectations of a lackluster holiday season, early reads suggest that sales may be better than expected. Retail sales for the holiday season in the U.S. rose 3.8% year over year between Nov. 1 through Dec. 24, according to Mastercard SpendingPulse.
A Promising Start to the Year
As retailers look to the new year, they’re focused on driving sustainable, profitable growth. With a strong holiday season under their belts, Lululemon and Abercrombie are poised for a promising start to 2025.
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