The strong holiday season prompted retailers Lululemon Athletica and Abercrombie & Fitch to raise their quarterly forecasts for the current quarter, albeit with different responses from investors.
Lululemon previously projected sales between $3.48 billion and $3.51 billion and profit per share between $5.56 and $5.64. Now, the company expects to see growth between 11% and 12%, net revenue between $3.56 billion and $3.58 billion, and profit per share between $5.81 and $5.85.
Lululemon’s chief financial officer (CFO), Meghan Frank, said on Monday that shoppers responded “well” to the company’s holiday product offerings.
“During the holiday season, our guests responded well to our product offering, enabling us to increase our fourth quarter guidance,” Frank shared in a statement.
Abercrombie & Fitch is also more optimistic about its holiday quarter results. The company stated it projects sales growth between 7% and 8% after previously forecasting growth between 5% and 7%.
Investors responded favorably to Lululemon’s adjusted guidance, sending its stock up by 2.40% in premarket trading on Monday. The company’s shares previously closed at $395.47, being 3.25% up since the start of 2025.
Abercrombie & Fitch, on the other hand, didn’t give investors much confidence due to the overwhelming belief that the company has little room for growth. Its stock sank 9.89% in premarket trading compared to Friday’s close of $160.92 per share.