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4 Apparel Stocks That Look Well-Poised for Success in 2024
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Investors eyeing opportunities in the Apparel industry's dynamic landscape should consider well-positioned stocks. Companies showcasing a superior product strategy, advanced omnichannel capabilities, prudent capital investments and an extensive customer reach are primed for success in 2024.
Why Apparel Stocks?
The Apparel industry is gearing up for a year of substantial growth, driven by the confluence of factors that are transforming the landscape. The increasing millennial population, coupled with rising disposable income and enhanced internet accessibility, sets the stage for industry expansion, offering diverse fashion choices to consumers.
Affordable fashion lines and effective branding are pivotal drivers of the industry's upward trajectory. This approach caters to evolving consumer tastes, establishing a resilient foundation for sustained growth. Balancing cost-effectiveness and style has broadened the consumer base, positioning the industry for ongoing success.
The interplay between brand awareness, personalized product offerings and the digital landscape is reshaping the industry. Retailers leverage digital platforms to enhance customer engagement, streamline shopping experiences and stay competitive. This strategic approach ensures consumers enjoy unprecedented access to an expanding array of fashion choices.
The industry's performance is closely linked to consumers' purchasing power, which has demonstrated resilience despite economic challenges. According to 2023 holiday sales data from the National Retail Federation, clothing and clothing accessory stores experienced a 3% year-over-year increase in sales.
Anticipating a potential interest rate cut by the Federal Reserve in 2024, especially if inflation trends move downward, expectations rise for a further boost to consumer spending. This optimistic scenario is likely to encourage discretionary purchases, including clothing. With this in mind, we have identified four apparel stocks carrying a Zacks Rank #1 (Strong Buy) or 2 (Buy).
Past 6-Month Price Performance
Image Source: Zacks Investment Research
4 Prominent Picks
Investors can count on Abercrombie & Fitch Co. (ANF - Free Report) . The company's ability to adapt, innovate and connect with customers positions it for a prosperous future. Abercrombie & Fitch’s regional operating model, with a focus on the Americas, the EMEA and the APAC, provides a solid foundation for global expansion. Its strong brand portfolio, operational efficiency and regional strategy make it an attractive investment opportunity as it continues to navigate and thrive in the evolving retail landscape.
This leading, global, omnichannel specialty retailer of apparel and accessories for men, women and kids delivered a trailing four-quarter earnings surprise of 713%, on average. The Zacks Consensus Estimate for Abercrombie & Fitch’s current financial-year sales suggests growth of 15.1% from the year-ago period. The stock sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
American Eagle Outfitters, Inc. (AEO - Free Report) is another potential pick. The company’s efforts to rationalize inventory and contain costs are paying off. The strong performance of key brands like American Eagle and Aerie, coupled with expansions into premium and activewear segments, indicates potential for growth. Its store designs and online enhancements demonstrate a commitment to improving the customer experience.
The Zacks Consensus Estimate for American Eagle Outfitters’ current fiscal sales and EPS suggests growth of 5% and 45.4%, respectively, from the year-ago reported figure. AEO, which sports a Zacks Rank #1, delivered a trailing four-quarter earnings surprise of 23%, on average.
Hibbett, Inc. (HIBB - Free Report) is worth considering. Hibbett boasts distinct competitive advantages, including superior customer service, a best-in-class omnichannel shopping experience, strong vendor relationships, strategic in-store placement and a presence in underserved markets. These advantages contribute to the company's ability to maintain and grow its market share. The company’s focus on improved expense management and disciplined inventory controls demonstrates a commitment to operational efficiency.
The Zacks Consensus Estimate for Hibbett’s current fiscal sales suggests growth of 1.7% from the year-ago reported figure. This Zacks Rank #2 company has a trailing four-quarter earnings surprise of 24.2%, on average.
Deckers Outdoor Corporation (DECK - Free Report) is a promising choice. The company has been targeting profitable and underpenetrated markets, emphasizing product innovations, store expansion and the strengthening of e-commerce capabilities. The company’s focus on expanding brand assortments, bringing more innovative lines of products, targeting consumers digitally and optimizing omnichannel distribution positions it for continued success.
Impressively, the Zacks Consensus Estimate for Deckers’ current-fiscal sales and EPS calls for growth of 12.4% and 23.4%, respectively, from the year-ago reported figure. This Zacks Rank #2 company has a trailing four-quarter earnings surprise of 26.3%, on average.
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4 Apparel Stocks That Look Well-Poised for Success in 2024
Investors eyeing opportunities in the Apparel industry's dynamic landscape should consider well-positioned stocks. Companies showcasing a superior product strategy, advanced omnichannel capabilities, prudent capital investments and an extensive customer reach are primed for success in 2024.
Why Apparel Stocks?
The Apparel industry is gearing up for a year of substantial growth, driven by the confluence of factors that are transforming the landscape. The increasing millennial population, coupled with rising disposable income and enhanced internet accessibility, sets the stage for industry expansion, offering diverse fashion choices to consumers.
Affordable fashion lines and effective branding are pivotal drivers of the industry's upward trajectory. This approach caters to evolving consumer tastes, establishing a resilient foundation for sustained growth. Balancing cost-effectiveness and style has broadened the consumer base, positioning the industry for ongoing success.
The interplay between brand awareness, personalized product offerings and the digital landscape is reshaping the industry. Retailers leverage digital platforms to enhance customer engagement, streamline shopping experiences and stay competitive. This strategic approach ensures consumers enjoy unprecedented access to an expanding array of fashion choices.
The industry's performance is closely linked to consumers' purchasing power, which has demonstrated resilience despite economic challenges. According to 2023 holiday sales data from the National Retail Federation, clothing and clothing accessory stores experienced a 3% year-over-year increase in sales.
Anticipating a potential interest rate cut by the Federal Reserve in 2024, especially if inflation trends move downward, expectations rise for a further boost to consumer spending. This optimistic scenario is likely to encourage discretionary purchases, including clothing. With this in mind, we have identified four apparel stocks carrying a Zacks Rank #1 (Strong Buy) or 2 (Buy).
Past 6-Month Price Performance
Image Source: Zacks Investment Research
4 Prominent Picks
Investors can count on Abercrombie & Fitch Co. (ANF - Free Report) . The company's ability to adapt, innovate and connect with customers positions it for a prosperous future. Abercrombie & Fitch’s regional operating model, with a focus on the Americas, the EMEA and the APAC, provides a solid foundation for global expansion. Its strong brand portfolio, operational efficiency and regional strategy make it an attractive investment opportunity as it continues to navigate and thrive in the evolving retail landscape.
This leading, global, omnichannel specialty retailer of apparel and accessories for men, women and kids delivered a trailing four-quarter earnings surprise of 713%, on average. The Zacks Consensus Estimate for Abercrombie & Fitch’s current financial-year sales suggests growth of 15.1% from the year-ago period. The stock sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
American Eagle Outfitters, Inc. (AEO - Free Report) is another potential pick. The company’s efforts to rationalize inventory and contain costs are paying off. The strong performance of key brands like American Eagle and Aerie, coupled with expansions into premium and activewear segments, indicates potential for growth. Its store designs and online enhancements demonstrate a commitment to improving the customer experience.
The Zacks Consensus Estimate for American Eagle Outfitters’ current fiscal sales and EPS suggests growth of 5% and 45.4%, respectively, from the year-ago reported figure. AEO, which sports a Zacks Rank #1, delivered a trailing four-quarter earnings surprise of 23%, on average.
Hibbett, Inc. (HIBB - Free Report) is worth considering. Hibbett boasts distinct competitive advantages, including superior customer service, a best-in-class omnichannel shopping experience, strong vendor relationships, strategic in-store placement and a presence in underserved markets. These advantages contribute to the company's ability to maintain and grow its market share. The company’s focus on improved expense management and disciplined inventory controls demonstrates a commitment to operational efficiency.
The Zacks Consensus Estimate for Hibbett’s current fiscal sales suggests growth of 1.7% from the year-ago reported figure. This Zacks Rank #2 company has a trailing four-quarter earnings surprise of 24.2%, on average.
Deckers Outdoor Corporation (DECK - Free Report) is a promising choice. The company has been targeting profitable and underpenetrated markets, emphasizing product innovations, store expansion and the strengthening of e-commerce capabilities. The company’s focus on expanding brand assortments, bringing more innovative lines of products, targeting consumers digitally and optimizing omnichannel distribution positions it for continued success.
Impressively, the Zacks Consensus Estimate for Deckers’ current-fiscal sales and EPS calls for growth of 12.4% and 23.4%, respectively, from the year-ago reported figure. This Zacks Rank #2 company has a trailing four-quarter earnings surprise of 26.3%, on average.