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Apparel and footwear retailers from Abercrombie & Fitch to Birkenstock signalled a softer holiday quarter on Monday as budget-conscious shoppers pulled back on discretionary spending, pressuring sales.
Shares of Abercrombie fell 15 percent in premarket trading after the company lowered its annual sales outlook. American Eagle and Urban Outfitters slid about 8 percent.
Inflation and lingering economic effects of president Trump’s trade policies have kept shoppers cautious, limiting holiday sales growth.
Adobe Analytics data last week showed US online holiday spending slowed during the 2025 season.
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Abercrombie now expects annual sales growth of at least 6 percent, down from its prior outlook of growth in the range of 6 percent to 7 percent.
Birkenstock shares fell about 3 percent after the company forecast first-quarter revenue of €402 million ($470.06 million) for the quarter ended December 31, 2025. That fell short of expectations of €403.3 million, according to data compiled by LSEG.
The company’s business operations have been hampered by US tariffs on the EU, which are hurting shoppers who are facing higher prices on imported goods.
Lululemon, however, said it expects holiday-quarter sales and profit at the top end of its prior outlook, signalling a rebound for the Canadian athleisure apparel maker.
By Neil J Kanatt
Learn more:
Birkenstock Sales Climb as Shoppers Snap Up Its Sandals, Clogs
The company reported higher sales and profit on strong demand for its pricey sandals and clogs, while predicting a slower pace of growth for the year ahead.