The apparel market is fast bouncing back from the COVID-era lows as businesses and schools get back to operating at the optimum level. As more people get out of their homes and go back to work and at the same time plan holidays, demand for new clothes is on the rise once again.
This has seen apparel sales skyrocketing lately. This comes as the retail sector continues to grow despite multiple challenges. Also, in-store shopping for apparel is back. This is helping stocks like
Boot Barn Holdings, Inc. ( BOOT Quick Quote BOOT - Free Report) , Tapestry, Inc. ( TPR Quick Quote TPR - Free Report) Nordstrom, Inc. ( JWN Quick Quote JWN - Free Report) and Chico's FAS, Inc. ( CHS Quick Quote CHS - Free Report) . Apparel Sales Soar
According to the latest Mastercard SpendingPulse report, the retail sector is growing at a solid pace, with apparel sales skyrocketing. According to the report, apparel sales grew 16% in March on a year-over-year basis.
The report says that spending on services has once again increased but the apparel market is on solid ground as demand for new clothes continues to soar. In fact, the overall retail sector has been making a fast recovery, with sales jumping 8.4% year over year in March.
People have been aggressively shopping for new clothes despite skyrocketing prices. High prices of commodities have been a cause of concern for lately but that hasn’t stopped shoppers from shelling out more.
Apparel Industry Poised to Grow
One of the main reasons for this jump is that consumers want to give their wardrobes a makeover after cutting back on garment shopping in 2020. People began to step outside their homes as the economy began to open up as restrictions started getting lifted.
Also, traveling has picked up again, sparking a new surge in demand for garments and accessories. This has given sales a much-needed boost.
As the economy continues to reopen, the apparel industry is expected to rise this year. The garment market, according to the NPD Group, is on course to surpass pre-pandemic sales levels this year.
Also, personal income is also on the rise and so is spending. Personal spending in the United States rose 2% in February. Moreover, hiring is increasing and the unemployment level is at a record low. Thus, with more income at hand, spending will only increase further in the coming days, helping the apparel market.
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, Inc. 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 3.7% over the past 60 days. TPR has a Zacks Rank #2.
Nordstrom, Inc. is a leading fashion specialty retailer in the United States. JWN offers an extensive selection of both branded and private-label merchandise, which are positioned in the upscale segment of the industry. Nordstrom offers high-quality apparel, shoes, cosmetics and related accessories for men, women, young adults and children through a variety of channels.
Nordstrom’s expected earnings growth rate for the current year is more than 100%. The Zacks Consensus Estimate for current-year earnings has improved 61.8% over the past 60 days. JWN sports a Zacks Rank #1.
Chico's FAS, Inc. is a cultivator of brands serving the lifestyle needs of fashion-savvy women 30 years and older. CHS’ brand portfolio currently consists of three brands: Chico's, White House Black Market and Soma. Chico's FAS’ brands are all specialty retailers of private label women's apparel, accessories and related products.
Chico's FAS’ expected earnings growth rate for the current year is 15%. The Zacks Consensus Estimate for current-year earnings has improved 9.5% over the past 60 days. CHS has a Zacks Rank #2.
Boot Barn Holdings, Inc. 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 1% over the past 60 days. BOOT carries a Zacks Rank #2.