Editor’s Note
This article examines a critical but often overlooked period in retail strategy. By analyzing Free People’s targeted promotional waves between December 26th and January 10th, it reveals how to capture distinct consumer mindsets—from post-holiday sales to seasonal transitions—to drive sustained engagement and sales.
Free People deployed three promotional waves between December 26th and January 10th. Each one targeted a different consumer mindset:
December 26th: After-Holiday Sale at 50% off the entire sale section — This captured immediate post-gift shopping momentum.
January 1st: New arrivals and winter-to-spring transition jackets — This addressed the seasonal shift when consumers start planning for warmer weather.
January 4th: Swim collection launch with up to 75% off select items — This capitalized on vacation planning and New Year fitness goals.
The timing mirrors broader retail patterns. According to Adobe Analytics, shoppers spent a record $257.8 billion online during the 2025 holiday season, a 6.8% year-over-year jump. That momentum didn’t stop on December 26th.
U.S. retail sales rose 0.6% month-over-month in November 2025, reaching $735.9 billion according to the Commerce Department. The sporting goods category jumped 1.9%, while clothing and accessories rose 0.9%.
Free People captured this consumer resilience during the exact window when many retailers pull back.
The top-performing categories remained consistent: tops, bottoms, and outerwear. But the standout performer reveals something more interesting.
The “Hit The Slopes Fleece Jacket” generated over $923,000 in the peak week of January 11th. This aligns with Free People’s broader activewear expansion through FP Movement.
FP Movement retail segment comps increased 19% in Q4, while wholesale sales jumped 91% year-over-year according to Shop-Eat-Surf. The sub-brand now operates 63 stores with plans to expand to 300 locations in North America.
An unexpected product also broke through: the “42 Birds ‘The Extra Long Robin’ Cork Yoga Mat” became the top seller in the week of January 4th. This wasn’t a markdown play. It was a new arrival that captured the New Year wellness surge.
We observed a 52% price drop for the “Sirciam Cosmic Garland Ring” that coincided with a 48% decrease in sales revenue. This challenges the assumption that deeper discounts always drive volume.
For high-value items like jewelry, aggressive markdowns can signal distress rather than opportunity. Customers questioned the original value proposition.
Meanwhile, the swim collection launch with 75% off select items drove significant traffic without damaging brand perception. The difference: seasonal clearance feels strategic, while mid-season jewelry markdowns feel reactive.
Customer sentiment data supports this:
High NPS scores: “Birkenstock Boston Soft Footbed Clogs” and “We The Free Emerson Tote Bag” maintained strong scores despite promotional pricing.
Lower NPS scores: “Hit The Slopes Fleece Jacket” and “We The Free Moxie Pull-On Barrel Jeans” showed concerns due to sizing and quality issues.
Free People’s parent company Urban Outfitters reported record Q4 sales of $1.6 billion in fiscal 2025, marking a 9% year-over-year increase. Free People achieved comparable retail segment net sales growth of 8.0%.
But the wholesale channel tells a bigger story. Free People wholesale segment net sales increased 15.5%, driven by a 17.9% increase due to specialty customers and department stores according to Globe Newswire.
The January retail surge wasn’t isolated. It reflected broader brand strength across multiple channels.
Free People now generates $1.46 billion in annual sales, making it the second-largest brand in the Urban Outfitters portfolio. The wholesale expansion supported aggressive retail promotions without compromising overall profitability.
Free People’s January performance demonstrates three principles:
1. Post-holiday recovery requires multiple promotional waves, not a single clearance event.
2. Each wave should target a different consumer mindset: immediate gratification, seasonal transition, and forward planning.
3. Category expansion into activewear and wellness creates new demand during traditional slow periods.
