Overview

• Abercrombie & Fitch raised its fourth-quarter sales growth forecast to 7-8%, but its stock fell 18.6% as investors remained wary of future growth comparisons and market conditions.
• Lululemon exceeded its holiday revenue expectations, projecting $3.56-$3.58 billion for Q4, yet analysts highlighted slower underlying growth rates and rising competition from brands like Alo Yoga and Vuori.
• American Eagle, Urban Outfitters, and Five Below also posted revised holiday updates, with varying results; American Eagle saw modest comparable sales growth, while Five Below reported a 3.2% decline in comparable sales.
• Macy's projected Q4 sales to fall below its prior guidance, reflecting challenges in the department store sector despite efforts to implement a new strategic direction.
• Investors are closely monitoring broader retail trends, including heightened discounting, rising inventories, and potential tariff impacts under the incoming U.S. administration.