Feedback Here

fbook  tweeter  linkin YouTube
Global contents also translated in Chinese

US Apparel sales sees highest growth since 2011, inventory issues plague retailers

"The apparel industry seems to be bouncing back with shoppers flocking reputed stores such as Lululemon, Abercrombie & Fitch, Old Navy and Urban Outfitters this holiday season. As Abercrombie & Fitch CEO Fran Horowitz reveals, outerwear sales are trending higher during the fourth quarter, thanks to cooler temperatures finally hitting much of the country, in addition to soft and cozy items like sherpa hoodies and pajama sets flying off shelves."

 

US Apparel sales sees highest growth since 2011 inventory issues plague retailers 002The apparel industry seems to be bouncing back with shoppers flocking reputed stores such as Lululemon, Abercrombie & Fitch, Old Navy and Urban Outfitters this holiday season. As Abercrombie & Fitch CEO Fran Horowitz reveals, outerwear sales are trending higher during the fourth quarter, thanks to cooler temperatures finally hitting much of the country, in addition to soft and cozy items like sherpa hoodies and pajama sets flying off shelves.

Apparel sales to witness exponential growth

As per consulting firm Customer Growth Partners, spending on apparel registered the highest growth since 2011, increasing 5.4 per cent over Black Friday weekend. The category, as Craig Jonhson, President of CGP reveals, normally registers a growth of only 1 to 2 per cent only. The National Retail Federation predicts overall holiday sales will grow between 4.3 and 4.8 percent this year, with apparel retailers making nearly a quarter of their annual sales during the holidays.

Leading brands fuelling growth

Some retailers are known to continuously outperform, with the biggest outperformers being off-pricers. TJ Maxx owner TJX,US Apparel sales sees highest growth since 2011 inventory issues plague retailers 001 for example, reported a 7 per cent increase in its sales in the latest quarter, with net sales increasing by 12 percent from a year ago to reach $9.8 billion. Brands such as Nike, Adidas and Under Armour are fuelling gains in apparel sales. Targeting women customers, these brands are rivaling Lululemon and Gap's Athleta brand, which are now trying to appeal to more men. Nike, for example, will open up studios to sell yoga pants in some of its stores.

Active wear gaining traction

Johnson points out, performance wear is currently the fastest-growing category with women being more comfortable in wearing leggings, graphic tees and jogger pants outside the house more often. Brands like Bandier, Outdoor Voices and Fila are taking over Instagram feeds, and their puffer jackets and sports bras are on many women's holiday wish list.

Amazon too is expanding its activewear range. Coresight Research reveals that the e-commerce company recently listed over 1 million women's and men's clothing products on its site, registering a 25 per cent increase from February 2018. Basics brands like Gildan and Calvin Klein, along with Under Armour and Adidas, are gaining popularity on Amazon.

Inventory issues plague retailers

However, retailers such as Gap and J Crew are struggling to balance supply and demand, so they don't end up with too much inventory on the shelves or in stock rooms. Nomura Instinet analyst Simeon Siegel noticed during the third quarters that department stores, as a group, reported their first quarter of inventory growth after 10 quarters of declines. These stores have managed to pass on excess apparel inventory to off-price chains such as TJ Maxx and Ross Stores more easily in the past, However, it's becoming increasingly difficult for them to do so now.

There are fears apparel companies might get more promotional in 2019 increasing the pressure on retailer’s margins. However, US President, Donald Trump and Chinese President Xi Jinping have decided to delay increasing tariffs in early 2019 on many consumer goods, including clothing. As Wells Fargo analyst Ike Boruchow says, this truce will benefit a number of retailers, including Fossil, Stitch Fix, Skechers and Steve Madden.

 

 
LATEST TOP NEWS
 


 
MOST POPULAR NEWS
VF Logo