Some major retailers shared their early holiday results, providing insight into the crucial shopping season. Lululemon, Birkenstock, and Savers Value Village reported solid growth, but results mostly met expectations.
Lululemon is preparing for a new CEO and a proxy battle with its founder, while Birkenstock and Savers Value Village had mixed results.
Lululemon expects its fiscal fourth quarter revenue to be close to $3.60 billion and earnings per share at approximately $4.76. These figures are at the high end of the guidance the company provided earlier.
However, Lululemon made no changes to its guidance for gross margin or other financial metrics. In premarket trading, shares were slightly higher. The company's finance chief, Meghan Frank, emphasized their focus on improving the U.S. business.
Birkenstock, which did not provide specific guidance last year, expects sales for the quarter ending December 31 to grow 11% to €402 million ($470 million).
This announcement disappointed some investors, causing shares to drop about 3% in premarket trading. Meanwhile, Savers Value Village experienced an 8.4% increase in sales during its holiday quarter, with comparable sales up 5.4%. However, the company reaffirmed its adjusted net income and EBITDA outlooks for fiscal 2025, leading to slightly higher shares in premarket trading.
American Eagle reported that its holiday quarter was surprisingly strong, with comparable sales up in the high single digits.
This performance prompted the company to adjust its fourth quarter operating income forecast to a range of $167 million to $170 million, up from $155 million to $160 million. CEO Jay Schottenstein noted strong sales growth across brands and channels.
Five Below also reported impressive results, with quarter-to-date sales as of January 3 rising 23.2%, while comparable sales climbed 14.5%.
The company is now expecting fiscal fourth quarter sales around $1.71 billion, up from a previous range of $1.58 billion to $1.61 billion. Five Below also increased its earnings per share expectations to between $3.93 and $3.98.
The early results from these retailers align with what many analysts expected for the holiday shopping season. While there are standout performers like American Eagle and Five Below, overall, analysts predict solid growth without significant increases in consumer spending.
The National Retail Federation previously forecasted retail sales in November and December to rise between 3.7% and 4.2% compared to 2024. However, when accounting for higher prices due to tariffs, some analysts expect volume growth to be largely flat.
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