Although the pandemic is not yet over, the situation around the world appears to be improving, thanks to the fast vaccination drive. With more people getting inoculated, the economies are opening up and consumers’ confidence is slowly bouncing back. Consumers are now returning to stores, bringing a recovery in brick-and-mortar traffic.
Even as stores reopen, companies continue to witness strong digital trends, which demonstrate that the shift to online shopping is here to stay. Another pandemic-led trend, which is likely to persist, is the demand for comfort wear. During the pandemic, the desire to live an active and healthy lifestyle has gained prominence. In addition to strong demand for casual wear, lifestyle clothing companies have started witnessing renewed demand for attires, for outings, parties, celebrations and weddings, which is likely to boost sales trends. Crocs, Inc. ( CROX Quick Quote CROX - Free Report) is one such stock, which has been a beneficiary of the strong demand for activewear and increased footfall at stores. This was reflected in its strong first-quarter 2021 results. Both top and bottom lines not only surpassed estimates but also increased year over year. This marked earnings and sales beat for the third consecutive quarter. (Read More: Crocs Surpasses Q1 Earnings and Revenue Estimates) Solid demand for its products along with growth across all regions and channels contributed to quarterly growth. Notably, products like Clogs, Sandals and Jibbitz acted as growth drivers. Further, the company has been witnessing a solid online show on the back of expanded digital and omnichannel capabilities. Its e-commerce business marked the 16th successive quarter of double-digit growth during the first quarter. The footwear brand, which was already widely popular before the pandemic, became a household name during the crisis, thanks to the new wave of comfort dressing. Part of this can also be attributed to its robust social media strategy and partnership with several celebrities, including Post Malone, Bad Bunny, Justin Bieber, Priyanka Chopra and recently, Questlove, sporting golden Crocs shoes at the Oscars. In fact, the company’s Crocs X Justin Bieber collection has been selling like hot cakes. His second collaboration with Crocs, launched in March this year, comes in summer-friendly pastel shades and oversized Jibbitz, featuring characters from his fashion label — Drew House. Also, the brand joined hands with Grammy-winning DJ and producer, Diplo, for a limited-edition collection, Diplo X Crocs, which was launched on Jun 8. Its bestseller classic clog shoes, the new two-strap sandals, are also doing well. With the frenzy around these plastic clogs not likely to fade anytime soon, management lifted its 2021 view and provided an encouraging outlook for the second quarter. It now expects revenues to increase 40-50% for 2021, up from the earlier guided view of 20-25% growth. Notably, this Zacks Rank #1 (Strong Buy) stock has surged 79.7% year to date, outperforming the industry’s growth of 10.8%. Further, the company’s long-term earnings growth rate of 15% indicates that the company has more room to run in the bourses. You can see . the complete list of today’s Zacks #1 Rank stocks here 4 More Lifestyle Stocks Displaying Earnings Momentum
Apart from Crocs, we have identified four more apparel stocks that have reported splendid earnings in the last reported quarter. These stocks are fundamentally strong and have displayed momentous growth, of late. Notably, each of these stocks has outperformed the industry on a year-to-date basis.
Image Source: Zacks Investment Research Under Armour ( UAA Quick Quote UAA - Free Report) is a leading designer, marketer and distributor of authentic athletic footwear, apparel and accessories. The company has displayed a robust surprise trend, with earnings and sales topping estimates for four straight quarters in first-quarter 2021. This is mainly backed by strength in North America and international regions as well as robust e-commerce sales. Also, sales gained from the reopening of economies in the United States and Asia, which boosted demand for sports shoes and apparel. Alongside these factors, management foresees improved consumer discretionary spending, stemming from the vaccine rollout program. As a result, the company raised its view for 2021. The company’s long-term expected earnings growth rate of 32.2% shows potential. It has a trailing four-quarter earnings surprise of 286%, on average. Moreover, the Zacks Rank #2 (Buy) stock has rallied 20.9% year to date. New-York based, G-III Apparel Group ( GIII Quick Quote GIII - Free Report) is a manufacturer, designer and distributor of apparel and accessories for men and women. It recorded top and bottom-line beats in fourth-quarter fiscal 2021, marking the third straight earnings beat. A solid online show along with strength in DKNY and Karl Lagerfeld Paris acted as upsides. Management issued upbeat sales and gross margin guidance for fiscal 2022. The Zacks Rank #1 stock has grown 39.3% year to date. Moreover, it has a long-term expected earnings growth rate of 11.6%. It has a trailing four-quarter earnings surprise of 122.8%, on average. Kontoor Brands ( KTB Quick Quote KTB - Free Report) is a designer, manufacturer and distributor of apparel for both men and women. In first-quarter 2021, the company reported the eighth consecutive positive earnings surprise and fourth straight sales beat. Results gained from strength in the digital channel, along with a solid performance in the U.S. wholesale business and improved trends in the international unit. Management raised its 2021 guidance. The company currently has a long-term expected earnings growth rate of 8% and a Zacks Rank #2. It has a trailing four-quarter earnings surprise of 55.9%, on average. The stock has gained 55.4% year to date. PVH Corp. ( PVH Quick Quote PVH - Free Report) specializes in designing and marketing branded dress shirts, neckwear, sportswear, jeanswear, intimate apparel, swim products, footwear, handbags and other related products. The company posted top and bottom-line beats in first-quarter fiscal 2021, driven by brand strength, particularly for Calvin Klein and Tommy Hilfiger. Additionally, management raised the fiscal 2021 guidance. The stock has advanced 16.1% year to date. It has a trailing four-quarter earnings surprise of 171.7%, on average. Moreover, the company has a long-term expected earnings growth rate of 18% and a Zacks Rank #1. Zacks Names “Single Best Pick to Double”
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