US fashion retailers cautious on 2025 growth amid market uncertainty

New York based retailer Foot Locker is projecting flat to slightly positive sales growth, with comparable sales expected to rise between 1.0 and 2.5 per cent. However, store count and square footage are set to decline. CEO Mary Dillon emphasised a focus on customer-facing investments and controlled inventory to navigate the evolving retail landscape.

However, Wisconsin-based omnichannel retailer Kohl’s expects a notable decline, forecasting a 5 to 7 per cent drop in net sales and a 4 to 6 per cent decrease in comparable sales. The company plans to reposition itself by focusing on key areas of improvement to enhance customer experience and value.

Similarly, Pennsylvania-based clothing retailer American Eagle Outfitters is also facing headwinds, with revenue projected to decline in the low single digits. CEO Jay Schottenstein noted a slow start to the year due to softer demand and weather-related impacts but remains committed to managing inventory and expenses to sustain long-term growth.

Meanwhile, California based Ross Stores is taking a cautious stance, citing external volatility and macroeconomic concerns. While sales could range from a 1 per cent decline to a 2 per cent increase, CEO Michael Conroy highlighted uncertainties in consumer demand, particularly in early 2025.

Among the five retailers, Burlington is the most optimistic, projecting total sales growth of 6 to 8 per cent and plans to open around 100 new stores. Despite acknowledging the unpredictable retail climate, CEO Michael O’Sullivan believes the off-price model is well-positioned to thrive amid uncertainty.

Overall, the outlook for 2025 highlights a cautious industry stance, with most retailers preparing for potential economic pressures and fluctuating consumer spending. While Burlington remains bullish, others are prioritising cost control, inventory management, and strategic investments to weather the uncertain retail environment.

ALCHEMPro News Desk (SG)