Several major U.S. retailers released early indicators of their holiday shopping performance on Monday, offering a first look at how consumers behaved during the most important retail season of the year. The results suggest that spending remained resilient and generally healthy, though it fell short of delivering any major upside surprises. For investors and analysts, the takeaway was clear: the holiday season was steady, not spectacular.

Among the companies reporting early results was Lululemon, which is currently navigating a period of leadership transition while also facing a proxy challenge initiated by its founder. The athletic apparel company stated that it now expects its holiday-quarter performance to land near the upper end of the financial guidance it previously provided. Other retailers, including footwear brand Birkenstock and thrift retailer Savers Value Village, also released preliminary holiday figures that came in broadly in line with expectations but lacked strong momentum. Meanwhile, Abercrombie & Fitch adjusted its outlook downward, while American Eagle and Five Below stood out by raising their forecasts after delivering stronger-than-anticipated holiday sales.

Lululemon said it expects revenue for its fiscal fourth quarter to reach approximately $3.6 billion, with earnings close to $4.76 per share. Both figures sit at the high end of the guidance range the company issued in December when it reported its third-quarter results. Importantly, Lululemon did not revise any of its other key financial assumptions, including expectations for gross margin, effective tax rate, or selling, general, and administrative expenses.

Following the announcement, Lululemon shares rose about 1 percent in morning trading, reflecting cautious optimism among investors.

Meghan Frank, the company’s chief financial officer, emphasized management’s focus on execution, particularly in the U.S. market. She noted that the company remains committed to its action plan aimed at driving operational improvements and sees meaningful opportunities ahead despite the current challenges.

Back in December, when Lululemon reported its previous quarter’s earnings, outgoing CEO Calvin McDonald described early holiday demand as encouraging. However, he also acknowledged that aggressive discounting during the Thanksgiving shopping period played a significant role in driving sales. Once that promotional window closed, consumer momentum slowed, a trend that appears consistent across much of the retail sector.

Historically, Lululemon has positioned itself as a premium brand that limits the use of discounts in order to protect margins and brand perception. In recent quarters, however, the company has adopted a more flexible pricing strategy to clear excess inventory and move styles that failed to resonate with customers. That shift has come at a cost. During the third quarter, Lululemon reported a 2.9 percentage point decline in margins, primarily due to higher tariffs and increased markdown activity.

Abercrombie & Fitch experienced a far more negative market reaction. Despite reporting what it described as record sales so far in the quarter, the retailer reduced the high end of its full-year guidance. As a result, its stock fell more than 18 percent in early trading, signaling investor disappointment.

The company now expects full-year sales growth of at least 6 percent, down slightly from its previous forecast range of 6 to 7 percent. It also revised its operating margin outlook to approximately 13 percent, compared with an earlier expectation of up to 13.5 percent. Earnings per share are now projected to fall between $10.30 and $10.40, a narrower range than before.

CEO Fran Horowitz sought to strike a confident tone, highlighting strong execution across product development, brand messaging, and customer experience. She emphasized that growth remained balanced across geographic regions, brands, and sales channels, suggesting that the company’s fundamentals remain intact despite the guidance adjustment.

Birkenstock, which did not issue specific holiday-quarter guidance last year, reported that sales for the quarter ending December 31 are expected to rise 11 percent to approximately €402 million, or about $470 million. Investors responded positively, sending the stock up roughly 2 percent in early trading. While the growth rate was not dramatic, it reinforced the brand’s steady global demand and consistent performance in a competitive footwear market.

Savers Value Village reported an 8.4 percent increase in sales during its holiday quarter. Comparable sales rose 5.4 percent when excluding the impact of an extra calendar week. Even with these relatively solid results, the company chose not to revise its outlook for fiscal 2025 adjusted net income and EBITDA, opting instead to reaffirm its prior expectations. Shares edged slightly higher in premarket trading, reflecting a neutral market response.

On the more optimistic end of the spectrum, American Eagle delivered one of the strongest holiday updates among major apparel retailers. The company said comparable sales for the quarter-to-date period through January 3 rose in the high single digits, exceeding internal expectations. Performance was strong across both brands and sales channels.

Comparable sales at the American Eagle brand increased by a low single-digit percentage, while its intimates brand, Aerie, posted growth in the low twenties. This divergence highlights Aerie’s continued strength and its importance as a key growth driver within the company’s portfolio.

Buoyed by what it described as a record holiday season, American Eagle raised its fourth-quarter operating income forecast to between $167 million and $170 million, up from its previous range of $155 million to $160 million.

CEO Jay Schottenstein attributed the strong results to brand momentum, successful new product launches, and effective marketing initiatives. He noted that consumer engagement remained strong even after the holidays, suggesting sustained demand entering the new year.

Despite the positive operational update, American Eagle’s stock declined 9 percent on Monday, underscoring the disconnect that can sometimes emerge between company performance and market expectations.

Five Below also delivered a standout holiday performance. The discount retailer reported that quarter-to-date sales through January 3 surged 23.2 percent, while comparable sales climbed 14.5 percent. Management credited the results to strong execution, compelling merchandise assortments, and a renewed focus on customer experience.

CEO Winnie Park said the company’s strategy of targeting both children and adults seeking affordable, trend-driven products resonated strongly during the holiday season. She emphasized that cross-functional collaboration and alignment across the organization helped deliver broad-based growth.

As a result, Five Below raised its fiscal fourth-quarter sales outlook to approximately $1.71 billion, well above its prior forecast range. The company also significantly increased its comparable sales outlook to 14 percent, nearly double its previous expectation.

Earnings guidance was raised as well. Five Below now expects earnings per share between $3.93 and $3.98, with adjusted earnings projected slightly higher. Despite the upbeat outlook, the company’s shares dipped about 1 percent in morning trading, reflecting profit-taking and broader market caution.

Taken together, these early holiday updates, released ahead of the annual ICR retail conference in Orlando, paint a picture largely consistent with analyst expectations. While certain retailers delivered impressive growth and exceeded forecasts, the broader retail landscape appears stable rather than explosive.

Consumer spending remained resilient, but higher prices driven by tariffs and inflation continue to weigh on purchasing behavior. The National Retail Federation previously projected that retail sales in November and December would increase between 3.7 percent and 4.2 percent compared with the prior year. While that represents healthy growth on the surface, some analysts believe that once price increases are accounted for, actual volume growth may be relatively flat.

For Wall Street, the message is clear: the holiday season provided reassurance, not euphoria. Strong performers will continue to stand out, but widespread, dramatic acceleration in consumer spending remains unlikely in the current economic environment.