Apparel and footwear retailers from Abercrombie & Fitch (ANF-N) to Birkenstock (BIRK-N) forecast subdued holiday-quarter sales on Monday, signaling cautious discretionary spending during the critical shopping period.
Abercrombie slumped 17 per cent in early trading, putting the stock on track for its worst day since May 2022, after the company lowered its annual sales outlook.
American Eagle maintained its fourth-quarter sales forecast and Urban Outfitters reported a slower holiday sales growth compared to a year earlier. American Eagle (AEO-N) shares slid about 8 per cent and Urban Outfitters (URBN-Q) tumbled 11 per cent.
“The theme of value-seeking behavior was on full display in this morning’s slew of retail pre-announcements,” Consumer Edge analyst Michael Gunther said, noting a continued shift toward affordable options, among even high-income consumers, as economic uncertainty persists.
Lingering economic effects of President Donald Trump’s trade policies have led shoppers to tighten spending, while apparel and footwear makers have struggled to keep costs in check amid supply-chain disruptions caused by U.S. tariff uncertainty.
The raft of updates ahead of the ICR industry conference this week also weighed on other apparel retailers including Gap, Under Armour and VF Corp, all down about 2 per cent. Department-store chains Macy’s and Kohl’s were also down in morning trading.
Abercrombie now expects annual sales growth of at least 6 per cent, down from its prior outlook of 6-per-cent to 7-per-cent growth. It estimated net sales for the quarter ending in February to increase about 5 per cent, compared with Wall Street estimates of a 5.8-per-cent rise, according to data compiled by LSEG.
Birkenstock forecast revenue of 402 million euros (US$470.06-million), short of expectations of 403.3 million euros for the quarter ended December 31. Shares reversed course to rise 1 per cent.
Lululemon (LULU-Q), however, said it expects holiday-quarter sales and profit at the top end of its prior outlook, signaling a rebound for the Canadian athleisure apparel maker. Its shares were up about 1.6 per cent.