Does A Strong Holiday Shopping Season Mean A Better Year Ahead?

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American shoppers surprised analysts, economists and even retail executives by spending more than expected in November and December. But a closer read shows that not all retailers are benefiting.

Retail sales during the holiday season increased 4 percent from a year earlier, according to data from the Commerce Department. Purchases of cars, clothes and electronics helped bolster sales.

Over the last week or so, some retailers have signaled how business went during the holidays — with more reports to come in February. Target's November and December total sales rose nearly 3 percent from the prior year, pushed higher as people put more clothes and toys in their shopping carts. Abercrombie ⁘ Fitch said sales had exceeded expectations and predicted growth of 7 to 8 percent over the 2023 holiday shopping season.

Lululemon, the maker of $98 leggings and other athletic wear, said it anticipated sales growth of 11 to 12 percent in the fourth quarter. "I still see a consumer that's healthy," Calvin McDonald, chief executive of Lululemon, said in an interview.