By Kelly Cloonan

With several apparel retailers set to report earnings this week, Wall Street will be watching for further clues into consumers' appetite for spending on discretionary items. The results will include the key holiday shopping period, which often makes up a significant share of retailers' annual sales. Jefferies analysts said a key theme will be whether the companies managed to balance promotions to drive traffic while also increasing some prices to help their top lines.

Abercrombie & Fitch--At the ICR Conference in January, Abercrombie said both its Hollister and namesake brands did well in December, however the company's narrowed fourth-quarter outlook disappointed some investors who had anticipated higher sales given positive credit-card data. Raymond James analysts said they expect Hollister's growth to slow this year, though see the company's results helped by momentum from new customers, continued strong demand for denim and selective price hikes due to tariffs and fewer promotions. The retailer is set to report earnings on Wednesday before the market opens.

American Eagle Outfitters--American Eagle has been getting a boost lately from a number of celebrity partnerships, including a denim campaign with actress Sydney Sweeney over the summer. At ICR, the company said customers have continued to respond to its latest marketing initiatives and forecast comparable sales up 8% to 9% in the fourth quarter, noting particularly strong growth at Aerie and sequential growth at its namesake brand. Investors appear to be overlooking the momentum at Aerie while the American Eagle brand potentially improves with a better spring assortment, Jefferies analysts said. The retailer will report results on Wednesday after market close.

Gap--Gap pushed promotions at some of its brands over the holiday season, but will likely report fourth-quarter earnings above analyst estimates and issue a solid full-year forecast, UBS analysts said. The retailer looks well-positioned to drive growth through its expansion into beauty and handbags, and can likely improve performance at Athleta if it applies the same strategy it used at its other brands, the analysts say. Gap is expected to share its quarterly results on Thursday after market close.

Write to Kelly Cloonan at kelly.cloonan@wsj.com

(END) Dow Jones Newswires

March 03, 2026 14:34 ET (19:34 GMT)

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