Retail sales declined slightly last December, owing to historically high inflation rates and declining consumer confidence. However, despite supply chain disruptions, improving consumer demand and declining COVID-19 cases suggest the retail industry will…
witness solid growth going forward.
Fundamentally sound retail stocks with impressive financials are gaining traction. Investors’ interest in this space is evidenced by the VanEck Vectors Retail ETF (RTH) 4.3% returns over the past six months.
Given this backdrop, Wall Street analysts expect strong retail stocks Bath & Body Works, Inc. (BBWI – Get Rating), Academy Sports and Outdoors, Inc. (ASO – Get Rating), and Stitch Fix, Inc. (SFIX – Get Rating) to gain 44% – 54% in price in the coming months. These stocks could thus be solid additions to one’s watchlist.
BBWI in Columbus, Ohio, retails body care, home fragrance products, soaps, and sanitizers. It operates approximately 1,750 company-operated Bath & Body Works locations and 300 international franchised locations, along with its website.
BBWI’s international sales increased 36.7% year-over-year to $73.7 million for the third quarter, ended Oct.30, 2021. Its U.S and Canada stores sales came in at $1.24 billion, up 3% year-over-year. Also, its adjusted net income from continuing operations was $244.78 million, up 3.6% year-over-year.
Analysts expect BBWI’s revenue to grow 5.5% to $7.25 billion for fiscal 2023. Its EPS is estimated to grow 51.7% to $3.93 in 2022. Over the past year, the stock has gained 54.1% in price to close yesterday’s trading session at $61.00. Wall Street analysts expect the stock to hit $88.07 in the near term, which indicates a potential 44.4% upside.
ASO, through its subsidiaries, operates as a sporting goods and outdoor recreational products retailer in the United States. The Katy, Tex.-based concern operates some 259 Academy Sports + Outdoors retail locations in 16 states.
On Dec. 10, 2021, Ken Hicks, Chairman, President, and CEO, said, “We are confident that our strong assortment and value offering, coupled with our great store service, enhanced omnichannel capabilities, and resilient supply chain will enable Academy to continue to achieve excellent results through this holiday season and beyond.”
For the third quarter, ended Oct. 30, 2021, ASO’s net sales were $1.59 billion, up 18.1% year-over-year. Its adjusted net income was $164.13 million, up 66% year-over-year. And its adjusted EPS came in at $1.75, up 92.3% year-over-year.
ASO’s revenue is expected to be $6.74 billion in fiscal 2022, representing an 18.5% year-over-year rise. The company’s EPS is expected to increase 89% to $7.24 in 2022. Over the past year, the stock has gained 65.2% in price to close yesterday’s trading session at $39.01. Wall Street analysts expect the stock to hit $58.80 in the near term, which indicates a potential 50.7% upside.
SFIX sells a range of apparel, shoes, and accessories through its website and mobile application in the United States. The San Francisco company offers…
Continue reading at STOCKNEWS.com