A substantial uptick in consumer spending on apparel with the reopening of the economy has been driving the recovery of the apparel industry. And because the industry is expected to continue witnessing sales growth in the coming months, Wall Street analysts expect established players in this space, Adidas (OTC:ADDYY), Lands' End (LE), and Citi Trends (CTRN), to rally substantially in price. So, let’s discuss.Although apparel retailers bore the brunt of the pandemic-related store closures last year, the speedy COVID-19 vaccine rollout and substantial increase in consumer spending have helped the industry’s sales rebound strongly this year. According to the chief U.S. economist at PNC, the outlook for consumer spending is expected to remain “positive.” Even though the worries over the COVID-19 Delta variant dampened spending activity slightly in July, clothing and accessories store sales were up 43.4% year-over-year.
The global apparel market is expected to hit $842.7 billion in 2025, registering a 9.8% CAGR. A shift in preference to branded products, aggressive branding by retail apparel operators, and strengthening e-commerce platforms are expected to propel the industry’s growth.
Thus, Wall Street analysts are bullish about the upside potential of several fundamentally sound apparel retailers. For instance, they expect Adidas AG (DE:ADSGN) (ADDYY), Lands' End, Inc. (LE), and Citi Trends, Inc. (CTRN) to rally by more than 75% in price in the near term.