Abercrombie’s 2022 holiday assortment was a “marked improvement on the selection being offered earlier in the year”, said GlobalData Managing Director Neil Saunders, noting that seasonal staples such as flannel shirts, pajamas, and outerwear performed very well.

Ohio-based Abercrombie said it now expects net sales to rise between 1% and 2% in the holiday quarter, compared with its prior forecast for a 2% to 4% fall.

It projected fourth-quarter operating margin between 6% and 8%, up from a range of 5% to 7% estimated previously.

The company said overall sales had improved from the third quarter, but its Hollister brand’s performance was still expected to lag 2021 levels in the holiday quarter.

American Eagle also said its fourth-quarter revenue and profit margins were tracking at the high end of its forecasts, benefiting from its decision to right-size inventory and a better-than-expected performance at its American Eagle label.

Meanwhile, yoga wear maker Lululemon Athletica Inc lowered its expectations for fourth-quarter gross margins, sending its shares down about 8% on Monday. Last week, department store chain Macy’s