For Immediate Release
Chicago, IL – March 2, 2022 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Boot Barn Holdings, Inc. (
BOOT Quick Quote BOOT - Free Report) , Tapestry, Inc. ( TPR Quick Quote TPR - Free Report) Capri Holdings ( CPRI Quick Quote CPRI - Free Report) and Designer Brands ( DBI Quick Quote DBI - Free Report) . Here are highlights from Tuesday’s Analyst Blog: Apparel Sales Bouncing Back to Pre-Pandemic Levels: 4 Picks
The U.S. apparel market is fast getting back on its feet after suffering for months during the pandemic. While the overall retail sector is making a slow recovery, garment sales have soared back to pre-pandemic levels, indicating that the industry is back on track as the economy further continues to reopen.
Although the holiday season wasn't that impressive for retailers this time around, the year seems to have started well, with apparel sales hitting new record highs. This has been helping stocks like
Boot Barn Holdings, Inc., Tapestry, Inc., Capri Holdings and Designer Brands. Apparel Sales Bounce Back
After months of struggle, apparel sales finally started picking up last year as the economy started reopening. This year seems to have started just like the retailers would have wanted, with apparel sales hitting a new high. According to the Mastercard SpendingPulse report, apparel sales grew 37.6% in January on a year-over-year basis, recording the strongest growth in the SpendingPulse history.
According to the report, apparel sales have now registered growth for 11 consecutive months, indicating that the hit it took during the pandemic is now almost over.
Besides, the National Retail Federation in a separate report said that apparel sales grew 0.7% month over month in January and 19.1% unadjusted on a year-over-year basis. The good news is that not only apparel, retail sales too have been on the rise with sales increasing 4.7% in January. This indicates that the overall sector is on track for recovery.
Apparel Sales Projected to Grow
One of the major reasons behind this jump is that people want to give their wardrobe a makeover after having cut down on shopping for apparels in 2020. As the economy started reopening and restrictions started getting eased, people started stepping outside their homes and are now traveling more frequently and are planning vacations.
This has once again given rise to the demand for apparels and accessories, which gives sales the much-required push.
The apparel is poised to grow this year as the economy further reopens. According to the NPD Group, the apparel market is on track to surpass the pre-pandemic sales level of 2019 this year.
Moreover, despite rising prices, people are willing to spend, which is a good sign for the apparel industry. According to the latest report from the Commerce Department, personal spending rose 2.1% in February despite personal income remaining almost unchanged from January. This means people are willing to shell out more.
Given this scenario, it would be prudent to invest in these four apparel stocks. Each of the stocks carries a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today's
Zacks #1 Rank stocks here. Tapestry is the designer and marketer of fine accessories and gifts for women and men in the United States and internationally. TPR offers lifestyle products, which include handbags, women's and men's accessories, footwear, jewelry, seasonal apparel collections, sunwear, travel bags, fragrance and watches.
Tapestry reported stronger-than-expected first-quarter fiscal 2022 earnings, thanks to robust demand and strong customer engagement. TPR posted first-quarter adjusted earnings of 82 cents a share, beating the Zacks Consensus Estimate of 69 cents.
Tapestry's expected earnings growth rate for the current year is 22.9%. The Zacks Consensus Estimate for current-year earnings has improved 4.3% over the past 60 days. Shares of TPR have gained 1.9% in the past three months. Tapestry carries a Zacks Rank #2.
Boot Barn Holdings operates as a lifestyle retail chain devoted to western and work-related footwear, apparel and accessories. BOOT's products include boots, denim, western shirts, cowboy hats, belts and belt buckles, and western-style jewelry and accessories. Boot Barn sells its products through bootbarn.com, an e-commerce Website.
Boot Barn Holdings' expected earnings growth rate for the current year is more than 100%. The Zacks Consensus Estimate for current-year earnings has improved 11.5% over the past 60 days. Boot Barn Holdings carries a Zacks Rank #1.
Capri Holdings provides women's and men's accessories, footwear and ready-to-wear, as well as wearable technology, watches, jewelry, eyewear and a full line of fragrance products. CPRI operates in the global personal luxury goods industry, which has been severely impacted by the outbreak of the coronavirus. Capri Holdings has been reinforcing its position in the luxury fashion space, and looks to maximize the potential of Versace, Jimmy Choo and Michael Kors brands through expanded products and categories.
Capri Holdings' expected earnings growth rate for the current year is more than 100%. The Zacks Consensus Estimate for current-year earnings has improved 12.4% over the past 60 days. Shares of CPRI have gained 14.4% in the past three months. Capri carries a Zacks Rank #1.
Designer Brands designs, produces and retails footwear and accessories. DBI offers shoes, boots, sandals, sneakers, socks, handbags and accessories. Designer Brands' operating segment consists of the DSW segment, which includes DSW stores and dsw.com and the Affiliated Business Group segment.
Designer Brands' expected earnings growth rate for the current year is more than 100%. The Zacks Consensus Estimate for current-year earnings has improved 0.60% over the past 60 days. DBI carries a Zacks Rank #1.
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