Lululemon, Victoria’s Secret among ‘biggest winners’ on Black Friday - Morgan Stanley
Octavio Jones

Lululemong Athletica (NASDAQ:LULU), American Eagle Outfitters (AEO), and Victoriaâs Secret (NYSE:VSCO) were named the âbiggest winners this Black Friday,â according to Morgan Stanley.
Per the bankâs channel checks, Lululemonâs (LULU) traffic was âa clear standout across the mallâ with long lines apparent at locations visited despite fewer discounts available. Additionally, strong sales at the core Victoriaâs Secret (VSCO) was credited for offsetting significant deceleration evident for the retailerâs PINK brand. Finally, American Eagle Outfitters (AEO) and Abercrombie & Fitchâs (ANF) core brand were called out for strong foot traffic and online sales for the Black Friday holiday.
âIn our view, this means these retailersâ assortments likely resonated with consumers & allowed these banners to drive relatively more profitable Black Friday revenue,â the team commented.
By contrast, Abercrombie & Fitchâs (ANF) Hollister brand as well as The Gapâs (GPS) flagship and Banana Republic brands were cited as ârelative losersâ for the retail sales day. The weak traffic for the brands came despite deep discounting, arousing caution on both Q4 sales and margins for each of the retailers. 
âLooking ahead post-Black Friday, we worry consumers may hold-out on further holiday spending/shopping until retailers once again offer deeper discounts. Historically, when we have seen consumers hesitate to spend while retailers are overstocked with inventory, retailers have often reacted first, slashing prices on goods to clear out excess stocks,â the team concluded. âIn our view, this means discounting activity could worsen over the next 5 weeks. This would yield outsized margin pressure, & keeps us cautious on the outlook for retailersâ profits this holiday season.â
Elsewhere, Walmart (WMT) and Five Below (FIVE) were cited as retailers seeing higher than usual traffic levels, while Ulta Beauty (ULTA) saw slower traffic. Target (TGT) was "most surprising" for the team as traffic remained muted despite the discounts offered. The earlier start for holiday sales was cited as a possible factor in lower consumer interest in Black Friday deals specifically.
Read more on discounting concerns across softlines retail.