Despite concerns over high inflation, supply chain constraints, and surging COVID-19 cases, the apparel industry is expected to benefit from rising consumer spending and e-commerce sales this holiday season. Consequently, it is wise to bet on these undervalued apparel retailers PVH (PVH), Hugo Boss (BOSSY), G-III Apparel (GIII), and Tilly’s (TLYS) that possess immense growth potential to offset rising input prices and profit well this holiday season.Reduced demand due to pandemic lockdowns and social distancing restrictions caused apparel sales to decline 19% year-over-year last year. However, establishing a robust digital presence, introducing new fashion trends and comfortable apparel in sync with the changing consumer tastes, and expanding market reach have gradually enabled apparel retailers to rebound. The global apparel market is expected to grow at 7.5% CAGR to $797.30 billion by 2025.
Strong vaccination rates, declining jobless claims, and a consistent rise in consumer spending since August made the National Retail Federation (NRF) forecast holiday retail sales to rise between 8.5% -10.5% this holiday season.
Given this backdrop and the ongoing volatility in the market, fundamentally-sound and undervalued apparel stocks PVH Corp. (NYSE:PVH), Hugo Boss AG (BOSSY), G-III Apparel Group, Ltd. (NASDAQ:GIII), and Tilly’s, Inc. (TLYS) are expected to profit substantially this holiday season.