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Retail sales have been slowing lately as higher prices are compelling people to spend cautiously. However, the apparel and accessories market seems to be swimming against the tide. According to the latest data released by the Commerce Department, apparel sales grew in September although overall retail sales remained flat.
The apparel industry is also facing multiple challenges but higher demand for clothing and accessories during the back-to-school season and ahead of the holiday season is driving sales. This has been helping stocks like Chico's FAS, Inc. , The Buckle, Inc. (BKE - Free Report) , Designer Brands Inc. (DBI - Free Report) and Hibbett, Inc. (HIBB - Free Report) .
Apparel Sales Continue to Grow
The Commerce Department said on Oct 14 that sales at clothing stores in the United States grew 0.5% in September. This comes as retail sales remained unchanged for the month as higher prices of commodities continued to make people spend cautiously.
However, the jump in clothing sales in September comes despite a steep rise in prices, as the consumer price index (CPI) increased 0.4% in September on a month-over-month basis and 8.2% year over year.
September jump also indicated a solid back-to-school season as parents and students spent aggressively on new clothes.
The clothing market has already been doing good for some time. The peak of the pandemic saw people almost giving up on buying new clothes and accessories as they mostly stayed indoors. However, sales started picking up once the economy started reopening and COVID-induced restrictions were lifted.
People who waited long are finally going on vacations. Also, offices and schools have reopened. This has resulted in people once again spending on apparel, accessories and footwear.
Also, after two long years, people are giving their wardrobes a makeover. This trend has been continuing for the past several months.
In fact, the apparel and accessories industry had also played a major role in driving retail sales in 2021. According to a recent report by the American Apparel and Footwear Association, the U.S. apparel and footwear industry had generated $470 billion in retail sales in 2021.
Last year, apparel production had accounted for 2.8% of the overall retail market, while footwear accounted for 1.9%. On average, an American had spent a record $1,101.52 for 69.1 pieces of clothing.
Also, clothing sales seem to be picking up ahead of the holiday season. Retailers are banking heavily on this shopping window like they do every year.
Our Choices
Given this scenario, it would be wise to invest in these four apparel stocks with a strong online and offline presence. 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.
Chico's FAS, Inc. is a cultivator of brands serving the lifestyle needs of fashion-savvy women 30 years and older. CHS’ portfolio currently consists of three brands: Chico's, White House Black Market and Soma.
Chico's FAS’ expected earnings growth rate for the current year is more than 100%. The Zacks Consensus Estimate for current-year earnings has improved 18.1% over the past 60 days. CHS presently has a Zacks Rank #2.
The Buckle, Inc. is a leading retailer of medium to better-priced casual apparel, footwear and accessories for fashion-conscious young men and women. BKE markets a wide selection of brand names and private-label casual apparel, including denims, other casual bottoms, tops, sportswear, outerwear, accessories and footwear.
The Buckle’sexpected earnings growth rate for the current year is 4.5%. The Zacks Consensus Estimate for current-year earnings has improved 2.3% over the past 60 days. BKE, at present, carries a Zacks Rank #2.
Designer Brands Inc. 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, as well as the Affiliated Business Group segment.
Designer Brands’ expected earnings growth rate for the current year is 23.5%. The Zacks Consensus Estimate for current-year earnings has improved 6.1% over the past 60 days. DBI currently sports a Zacks Rank #1.
Hibbett, Inc. has evolved its offerings from sports goods to an athletic-inspired fashion-focused assortment. HIBB provides products for individuals as well as team sports across stores and online. Hibbet emphasizes providing a compelling collection of athletic-inspired fashion footwear, apparel and accessories.
Hibbet’s expected earnings growth rate for next year is 7.8%. The Zacks Consensus Estimate for current-year earnings has improved 1.5% over the past 60 days. HIBB currently carries a Zacks Rank #2.
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4 Solid Apparel Stocks to Buy on Jump in Sales
Retail sales have been slowing lately as higher prices are compelling people to spend cautiously. However, the apparel and accessories market seems to be swimming against the tide. According to the latest data released by the Commerce Department, apparel sales grew in September although overall retail sales remained flat.
The apparel industry is also facing multiple challenges but higher demand for clothing and accessories during the back-to-school season and ahead of the holiday season is driving sales. This has been helping stocks like Chico's FAS, Inc. , The Buckle, Inc. (BKE - Free Report) , Designer Brands Inc. (DBI - Free Report) and Hibbett, Inc. (HIBB - Free Report) .
Apparel Sales Continue to Grow
The Commerce Department said on Oct 14 that sales at clothing stores in the United States grew 0.5% in September. This comes as retail sales remained unchanged for the month as higher prices of commodities continued to make people spend cautiously.
However, the jump in clothing sales in September comes despite a steep rise in prices, as the consumer price index (CPI) increased 0.4% in September on a month-over-month basis and 8.2% year over year.
September jump also indicated a solid back-to-school season as parents and students spent aggressively on new clothes.
The clothing market has already been doing good for some time. The peak of the pandemic saw people almost giving up on buying new clothes and accessories as they mostly stayed indoors. However, sales started picking up once the economy started reopening and COVID-induced restrictions were lifted.
People who waited long are finally going on vacations. Also, offices and schools have reopened. This has resulted in people once again spending on apparel, accessories and footwear.
Also, after two long years, people are giving their wardrobes a makeover. This trend has been continuing for the past several months.
In fact, the apparel and accessories industry had also played a major role in driving retail sales in 2021. According to a recent report by the American Apparel and Footwear Association, the U.S. apparel and footwear industry had generated $470 billion in retail sales in 2021.
Last year, apparel production had accounted for 2.8% of the overall retail market, while footwear accounted for 1.9%. On average, an American had spent a record $1,101.52 for 69.1 pieces of clothing.
Also, clothing sales seem to be picking up ahead of the holiday season. Retailers are banking heavily on this shopping window like they do every year.
Our Choices
Given this scenario, it would be wise to invest in these four apparel stocks with a strong online and offline presence. 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.
Chico's FAS, Inc. is a cultivator of brands serving the lifestyle needs of fashion-savvy women 30 years and older. CHS’ portfolio currently consists of three brands: Chico's, White House Black Market and Soma.
Chico's FAS’ expected earnings growth rate for the current year is more than 100%. The Zacks Consensus Estimate for current-year earnings has improved 18.1% over the past 60 days. CHS presently has a Zacks Rank #2.
The Buckle, Inc. is a leading retailer of medium to better-priced casual apparel, footwear and accessories for fashion-conscious young men and women. BKE markets a wide selection of brand names and private-label casual apparel, including denims, other casual bottoms, tops, sportswear, outerwear, accessories and footwear.
The Buckle’sexpected earnings growth rate for the current year is 4.5%. The Zacks Consensus Estimate for current-year earnings has improved 2.3% over the past 60 days. BKE, at present, carries a Zacks Rank #2.
Designer Brands Inc. 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, as well as the Affiliated Business Group segment.
Designer Brands’ expected earnings growth rate for the current year is 23.5%. The Zacks Consensus Estimate for current-year earnings has improved 6.1% over the past 60 days. DBI currently sports a Zacks Rank #1.
Hibbett, Inc. has evolved its offerings from sports goods to an athletic-inspired fashion-focused assortment. HIBB provides products for individuals as well as team sports across stores and online. Hibbet emphasizes providing a compelling collection of athletic-inspired fashion footwear, apparel and accessories.
Hibbet’s expected earnings growth rate for next year is 7.8%. The Zacks Consensus Estimate for current-year earnings has improved 1.5% over the past 60 days. HIBB currently carries a Zacks Rank #2.