A number of retail stocks provided business updates early Monday ahead of the ICR Conference later in the day. Abercrombie & Fitch increased its fiscal 2023 sales and operating margin outlook. Lululemon predicted a better-than-expected Q4.
Retail stocks were mixed Monday during premarket action. LULU stock fell 1.6% while ANF shares advanced 0.5%. Crocs stock surged more than 8% after it announced Monday morning it predicts $3.95 billion in revenue for 2023 on sales growth of 3%-5% in 2024.
Meanwhile, Genesco stock sank nearly 12% on its decision to revise lower its fiscal 2024 EPS estimates. Genesco expect fiscal 2024 earnings of 65 cents-85 cents per share, down from its prior view of $1.50-$2.00 per share.
Abercrombie & Fitch announced Monday it expects full-year sales to grow 14%-15%, up from its previous prediction of 12%-14% growth. ANF also currently expects "high teens" sales growth in Q4, a change from the company's prior "low double digits" increase forecast.
The slew of business updates — from LULU, CROX and other retailers — comes ahead of the beginning of this week's ICR Conference, held in Florida. ICR is a leading strategic communications and advisory firm for retailers.
Retail Stocks: LULU Stock, ANF And Others
Abercrombie & Fitch stock is ramping toward its ninth consecutive monthly advance. During this run, dating back to the end of April 2023, ANF stock has surged 284%. The run has left shares more than 80% above the stock's 200-day moving average, suggesting it may be due for some price consolidation.
Meanwhile American Eagle Outfitters advanced more than 8% early Monday after also raising its fourth-quarter revenue outlook.
LULU stock has declined around 4% in January after surging about 60% in 2023. On Monday, Lululemon announced it expects Q4 revenue to be in the range of $3.170 billion-$3.190 billion, up from the previous guidance range of $3.135 billion-$3.170 billion. LULU also forecasts diluted earnings per share to be $4.96-$5.00 per share in Q4. The company's prior expectation was EPS of $4.85-$4.93.
Lululemon stock has a perfect 99 Composite Rating. LULU also has a 93 Relative Strength Rating and a 98 EPS Rating.
Wedbush analyst Tom Nikic wrote Monday that the firm remains "bullish" on LULU stock following the guidance update.
"We believe brand momentum remains very high, and LULU is one of the highest-quality names in our coverage," Nikic wrote.
The analyst added that investors have to pay a healthy premium for LULU stock but that the firm believes "it is worth it given the company's high-visibility growth and exceptionally strong execution."
Ahead of Monday trade, CROX stock had angled more than 7% lower in January. Crocs shares have come down 43% since hitting highs of 151.32 on April 24, 2023.
Please follow Kit Norton on X, formerly known as Twitter, @KitNorton for more coverage.
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