Retailers Report Mixed Holiday 2024 Results, Wall Street Reacts Cautiously

Strong holiday sales were tempered by investor concerns over slowing growth, rising inventory levels, and competitive pressures in the retail sector.

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.