A decade ago, Alibaba Group Holding Limited’s (BABA - Free Report) CEO Daniel Zhang rebranded Singles Day as the 11/11 Global Shopping Festival by slashing prices of clothes, jewelry, appliances and electronics for just 24 hours. The event turned out to be a smashing hit. Following the phenomenal success, dozens of retailers across the globe followed suit.
Not so surprisingly, this year’s Singles’ Day also saw bumper sales at a time when the global economy is reeling under the US-China trade tiff. This has infused optimism among U.S. retailers regarding the upcoming holiday season.
It is also to be noted that consumer spending in the United States has been strong so far this year. Given the circumstances, let’s take a look at the factors that may shape up this holiday season for U.S. retailers.
Here’s How U.S. Retailers Are Gearing Up
Alibaba made $38.4 billion in gross merchandise volume (GMV) on Nov 11, 2019. Coming to the U.S. online retail sales for the day, the figure reached $2.7 billion. Given that the U.S. holiday season is just around the corner, the extra promotions on Singles’ Day should have boosted sales for the quarter ending December 2019.
In fact, the early November event helped retailers chalk out plans to drive sales. This also allowed stores to manage inventories ahead of time. Such initiatives helped retailers like Urban Outfitters, Inc. (URBN - Free Report) , which offered 30% off on selected apparel, lifestyle and beauty products, rake in massive Singles’ Day sales.
Apart from these strategies, retailers may also make use of sales data from Singles’ Day promos and positive Veteran’s Day results, ask shoppers to live stream their shopping expeditions (which actually helps promote brands), and offer free takeaways. What’s more, Adobe Analytics predicts that the five-day Thanksgiving weekend this year will contribute about $29 billion to retail sales.
5 Retail Stocks to Watch Now
The holiday season benefits the retail space, be it brick and mortar or online, and also boosts the economy. Given the positives and a superb preview of the holiday season sale from Alibaba’s Singles’ Day, we have shortlisted five retail stocks that flaunt a Zacks Rank #1 (Strong Buy) or 2 (Buy).
The Buckle, Inc. (BKE - Free Report) is a publicly-traded company that operates as a retailer of casual apparel, footwear, and accessories for young men and women in the United States. Shares of The Buckle have gained 10.9% in the past year against the Zacks Retail - Apparel and Shoes industry’s decline of 37.3%. The Zacks Consensus Estimate for its current-year earnings has moved up 6.6% over the past 60 days.
The Buckle has a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Boot Barn Holdings, Inc. (BOOT - Free Report) is a publicly-traded lifestyle retail chain company that offers western and work-related footwear, apparel, and accessories for men, women, and kids. Shares of Boot Barn Holdings have gained 100.2% in the past year against the Zacks Retail - Apparel and Shoes industry’s decline of 35.6%. The Zacks Consensus Estimate for its current-year earnings has risen 6.7% over the past 60 days. The Buckle has a Zacks Rank #1.
Pinduoduo Inc. (PDD - Free Report) is a publicly traded e-commerce platform company that operates a mobile platform that offers a range of products, including apparel, shoes, bags, mother and childcare products, food and beverage, fresh produce, electronic appliances, furniture and household goods, cosmetics and other personal care items, sports and fitness items, and auto accessories.
Shares of Pinduoduo have gained 102.7% in the past year compared to the Zacks Internet - Commerce industry’s rise of 13.3%. The Zacks Consensus Estimate for its current-year earnings has climbed 1.5% over the past 60 days. Pinduoduo has a Zacks Rank #1.
Qurate Retail, Inc. (QRTEA - Free Report) is a publicly-traded company that engages in the video and online commerce industries in North America, Europe, and Asia. Shares of Qurate Retail have gained 5.4% so far this month than the Zacks Internet - Commerce industry’s rise of 4.4%. The Zacks Consensus Estimate for its current-year earnings has risen 1.6% over the past 60 days. Qurate Retail has a Zacks Rank #2.
Tempur Sealy International, Inc. (TPX - Free Report) is a publicly-traded company that develops, manufactures, markets and distributes bedding products. Shares of Tempur Sealy have gained 74.7% in the past year compared to the Zacks Retail - Home Furnishings industry’s rise of 16.9%. The Zacks Consensus Estimate for its current-year earnings has moved 8.6% north over the past 60 days. Tempur Sealy has a Zacks Rank #2.
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