Clothing sales return to their pre-pandemic high: 5 winners – July 14, 2021
Clothing sales are on the rise again as restrictions are relaxed and more people go out and plan their vacations. Clothing sales had taken a hard hit last year as people mostly stayed indoors and spent less on shopping.
However, things are changing with more and more people being vaccinated. Americans are now spending aggressively on clothing and accessories, which is boosting overall retail sales.
Clothing sales on the rise
With more and more people traveling and many more planning their vacations, sales of clothing and clothing accessories are on the rise again. According to the latest report from Mastercard SpendingPulse, clothing sales were up 62.9% year-over-year in June.
The segment had been hit hard last year, with store closings and sales almost at a standstill. Even when the economy reopened, sales remained weak as restrictions on travel and public places continued.
However, things started to change from the start of this year as more and more people started to get vaccinated. The direct impact was felt on clothing sales, which finally recovered. June’s growth is 12.7% higher than the same period in 2019, proving that sales are now higher than in the pre-pandemic era.
The clothing market is about to grow
E-commerce has played a major role in saving not only the apparel industry, but the entire retail industry during the pandemic. The majority of clothing sales last year took place online.
According to Statista, the US clothing market was valued at $ 368 billion in 2019. In that year, global clothing and footwear sales reached $ 1.9 trillion and are now expected to cross the $ 3 trillion mark. dollars to the United States by 2030.
This increase is expected to be driven by electronic commerce. According to a report by Retail Dive, the trend of online clothing shopping increased by 30% in 2020, the fastest since 2002. This was obviously due to the pandemic. In fact, clothing, footwear, and accessories accounted for 19% of overall e-commerce sales in the United States in 2020, despite the category’s overall sales declining due to the pandemic.
According to the report, online clothing sales are now expected to reach 47.5% by 2024.
Moreover, despite the pandemic disrupting sales, the market is expected to grow at a rapid rate. Back-to-school clothing sales are expected to increase 78.2% year-over-year, according to another report from Mastercard SpendingPulse. The start of the school year is generally considered to be the period between July 15 and September 6.
Given this scenario, it would be prudent to invest in these five clothing stocks. Each of the actions has a Zacks Rank # 1 (Strong Buy) or 2 (Buy). You can see the full list of today’s Zacks # 1 Rank stocks here.
Abercrombie & Fitch Company (ANF – Free Report) operates as a specialty retailer of premium casual clothing for men, women and children through a network of approximately 850 stores in North America, Europe, Asia and the Middle East.
The company’s expected profit growth rate for the current year is over 100%. Zacks’ consensus estimate for current year earnings has improved 88.1% in the past 30 days. The company sports a Zacks Rank # 1.
Loop, Inc. The (BKE – Free Report) markets a wide selection of private label brands and casual wear, including denim, other casual bottoms, tops, sportswear, outerwear, accessories and footwear.
The company’s expected profit growth rate for the current year is 41%. Zacks’ consensus estimate for current year earnings has improved 25% over the past 30 days. The company sports a Zacks Rank # 1.
L Brands, Inc. (KG – Free Report) has grown from a specialty apparel retailer to a segment leader focused on women’s intimate and other clothing, personal care, beauty and home fragrances.
The company’s expected profit growth rate for the current year is 67.3%. Zacks’ consensus estimate for current year earnings has improved 8.2% in the past 60 days. L Brands has a Zacks Rank # 2.
Urban Outfitters, Inc. (URBN – Free Report) is a lifestyle retailer specializing in fashion clothing and accessories, footwear, home decor and giftware.
The company’s expected profit growth rate for the current year is over 100%. Zacks’ consensus estimate for current year earnings has improved 83.6% in the past 60 days. Urban Outfitters wears Zacks Rank # 1
Levi Strauss & Co. (LEVI – Free Report) designs and markets jeans, casual wear and related accessories for men, women and children under the Levi’s, Dockers, Signature by Levi Strauss & Co. and Denizen brands.
The company’s expected profit growth rate for the current year is over 100%. Zacks’ consensus estimate for current year earnings has improved 14.4% in the past 60 days. Levi Strauss sports a No.1 Zacks rank.