5 Apparel Stocks Likely To Remain Fashionable Treats In 2019

The apparel category takes up a large share of the retailing cart. The Zacks Retail – Apparel and Shoes industry mostly includes specialty retailers offering apparel, activewear, footwear, accessories, electronics, fitness and lifestyle products, both in-stores and on websites. The industry’s prospects, which are closely tied to the purchasing power of consumers, have been robust of late owing to strong U.S. economic fundamentals.

The U.S. GDP grew 3.3% on average in the first nine months of 2018, a notch higher than Trump administration’s targeted growth rate of 3%. The increase in GDP, which reflects higher personal income and robust job picture, is resulting in higher consumer spending that has benefited the retail sector. The fourth-quarter is likely to show maintained momentum on a strong labor market and solid consumer and business confidence.

Strongest Holiday Season for Retailers in 6 Years

Clear signs of this optimism on the retail sector were seen as Mastercard SpendingPulse released blockbuster initial numbers of retail holiday sales. The early data reveals that U.S. retailers had the best holiday season in six years as retail sales between Nov 1 and Dec 24 increased 5.1%. It shows that shoppers spent more than $850 million this holiday season.

The success is mostly attributed to robust consumer spending, with e-commerce being a major contributor. Online sales grew 26.4% from a year ago between the Wednesday before Thanksgiving through Black Friday, per Adobe Analytics. Per Mastercard SpendingPulse, U.S. e-commerce sales grew 19.1% from Nov 1 through Dec 24 from 2017 level.

Mastercard’s initial holiday numbers undoubtedly outpaced the National Retail Federation’s (NRF) earlier projections that called for retail sales of about $721 billion during the holiday season. This data was somewhat within Deloitte’s earlier forecast of 5-5.6% retail holiday sales growth, with about 17-22% increase coming from online sales.

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