Lululemon and Abercrombie Adjust Q4 Outlooks

Lululemon has increased its fourth-quarter earnings and revenue guidance following a stronger-than-expected holiday shopping season, with anticipated sales growth of 11% to 12% and a revenue range of $3.56 billion to $3.58 billion. The company's profit forecast has been adjusted upward, with earnings per share expected to be between $5.81 and $5.85, reflecting strong consumer demand and outperforming analysts' expectations. Shares in Lululemon rose nearly 4% in premarket trading following the announcement. Additionally, Abercrombie & Fitch Co. reported record fourth-quarter net sales and increased its sales outlook for fiscal 2024, but its stock fell by about 19% due to investor expectations for a more substantial surprise. Lululemon's optimistic outlook ahead of the ICR conference indicates positive momentum as the company adapts to consumer spending trends.