Activewear & School Goers To Boost Apparel Spending: 4 Picks

Americans spent generously on apparel, bought new cars and went to fancy restaurants in June, as per reports from the U.S. Commerce Department. Per the latest data on Jun 16, U.S. retail sales increased by 0.4% in the last month, surpassing the consensus estimate of an increase of 0.2%. Economists have stated that an increase in consumer spending would help offset the impact of weak business investment and a protracted trade war with China.

Meanwhile, consumers have developed a special liking for comfortable and fashionable brand of clothes termed as activewear. Experts believe that such clothing is the future of this space. Furthermore, back-to-school spending this season was also boosted by increased spending on clothing and accessories. Under such circumstances, investing in apparel stocks seems prudent.

Fashionable Consumers Prefer Comfort & Convenience

Per a report by the NPD Group released earlier this month, apparels such as sweats, swimwear, sleepwear and dresses will drive growth for the apparel industry over the next couple of years. While consumers have become fashion-conscious now more than ever, they somehow refuse to give up on the comfort and convenience that activewears offer.

Moreover, NPD Group’s chief industry advisor Marshal Cohen believes that the apparel industry will ride on the success of such clothes, which “act active but look fashion.” He also stated that fashion today is all about easy style and major players in the space should look to capitalize on that.

To back such tall claims, there are numbers. Shoppers’ preference for comfort wear is evident in excellent sales figures for activewears. One of the primary reasons why this category stands out is its ability to combine comfort and style. According to the report, sales for sweats and active bottoms surged 8% to $23.6 billion in the 12 months through May 2019. Over the same period, sales for sleepwear increased about 2% to $7.8 billion.

Clothing to Contribute to a Major Chunk of Back-to-School Spending

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