Holiday Shopping: Mixed Results for Retailers
Lululemon: Strong Sales, But Discounts Hurt Profits
Lululemon, a popular clothing brand, reported sales close to the top of their predictions. They expect to make about $3.60 billion and earn around $4.76 per share. However, they didn't change their plans for profits or expenses.
Their stock went up slightly before the market opened.
Lululemon's outgoing CEO mentioned that holiday sales were good, but they had to offer big discounts to attract buyers, which hurt their profits. Other high-end brands also had to do this to sell old stock.
Abercrombie & Fitch: Record Sales, But Lowered Predictions
Abercrombie & Fitch, another clothing store, had record sales but lowered their predictions for the year. Their stock dropped significantly before trading started.
Birkenstock: Sales Up, But Investors Unhappy
Birkenstock, the shoe maker, reported an 11% increase in sales, but investors weren't happy, and their stock fell.
Savers Value Village: Modest Growth
Savers Value Village, a thrift store, saw sales grow by 8.4%, but they didn't change their predictions for the year. Their stock went up a little.
American Eagle and Five Below: Standout Performers
On the bright side, American Eagle and Five Below did exceptionally well.
- American Eagle's sales went up significantly, especially for their Aerie brand.
- Five Below had a great holiday season, with sales up by 23.2%. They raised their predictions for the year. Their CEO said they focused on giving customers great products at good prices.
Overall: Solid, But Not Amazing
Overall, the holiday shopping season was solid, but not amazing. Some stores did well, while others struggled.
Analysts expected this, and the National Retail Federation predicted sales would go up by 3.7% to 4.2%. However, considering higher prices from tariffs, the actual growth might not be that much.
