Lululemon Athletica and Abercrombie & Fitch raised their current-quarter sales targets on Monday, helped by demand for heavily discounted apparel during the holiday season, even as steep promotions took a bite out of some retailers' margins.

Lululemon Athletica Inc. expects fourth quarter sales to surpass the market’s expectations, showing the upscale activewear brand is fending off upstart competitors and slower growth in consumer spending.

Shares of Lululemon Athletica ($LULU) surged nearly 1% on Monday after the company raised guidance on revenues and earnings for the fourth quarter, lifting retail sentiment. The apparel maker now expects net revenue to be between $3.

Lululemon’s stock rallies toward a 10-month high after guidance for profit, revenue and gross margin were raised.

Lululemon Athletica on Monday raised its current-quarter targets, as the sportswear maker benefited from a bump in demand for its apparel during the holiday season and underscored a stronger-than-anticipated shopping period in the United States.