According to UBS, American Eagle Outfitters (NYSE:AEO), Abercrombie & Fitch (NYSE:ANF), Lululemon (NASDAQ:LULU) and Urban Outfitters (NASDAQ:URBN) will see at least 20 percent of their total holiday sales originate from e-commerce.
American Eagle is expected to make 24 percent of its fourth-quarter sales via e-commerce, reported 24/7WallSt. In spring, the company announced it would close 150 stores in North America during the next three years, including nearly 100 AE stores. However, the retailer is attracting online attention and recently made a list of most engaged retail brands on Pinterest, according to data collection on Curalate.
Abercrombie & Fitch has made a conscious effort this year to rebuild the brand, which has lost a lot of its teen followers. To accomplish this, the company has been targeting its 19 million followers on Facebook, continuing share repurchases, leaner inventory and improving fashion offerings. According to UBS, about 29 percent of total holiday sales will originate on the internet.
After a difficult year that includes setbacks in management—founder Chip Wilson recently agreed to sell half his remaining shares, 27.7 percent, to Advent International, ending a one-year battle with the board—and last year's yoga pants recall, Lululemon is poised to make 22 percent of its holiday sales via e-commerce.
And finally, Urban Outfitters, another trend setter that has battled consumer perception, has recently been using social media such as Pinterest and Instagram to help lift its sales. The company has also spent time revamping physical stores to be bigger and to create an experience. For example, in April the company unveiled its new concept store, Space Ninety 8 in Brooklyn, New York. The store is five levels with several new features including an event space for a marketplace of local designers and a restaurant and bar with outdoor dining. The big winner for e-commerce, UBS predicts the company will gain 38 percent of all sales online this holiday season.
E-commerce has already proved to be a strong player in this year's holiday sales season. U.S. shoppers spent more than $2 billion dollars on e-commerce this Cyber Monday, up 17 percent from last year. The occasion marked the heaviest online spending day in U.S. history and the first time ever to surpass $2 billion in sales.
-See this 24/7WallSt article
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