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Retailers Post Solid but Unspectacular Holidays as Lululemon Boosts Outlook

Investors will seek clarity on margins at this week’s ICR meetings.

Overview

  • Early updates from multiple chains indicate holiday spending generally met expectations without large upside surprises.
  • Lululemon said fourth-quarter revenue should land near $3.60 billion with EPS near $4.76, both at the high end of prior guidance, and the stock gained in premarket trading.
  • The company left guidance for gross margin, SG&A and tax rate unchanged after a third-quarter gross-margin decline of 2.9 percentage points tied to tariffs and heavier discounting, while a CEO search and activist pressure continue.
  • Birkenstock projected 11% sales growth to €402 million for the quarter ended Dec. 31, while Savers Value Village reported 8.4% holiday-quarter sales growth and 5.4% comparable sales excluding an extra week.
  • Specialty results drew mixed reactions, with Urban Outfitters posting 9% growth for November and December and American Eagle raising its fourth-quarter operating income outlook to $167 million to $170 million alongside stronger comps.