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Retail can be a brutal field. The competition is cutthroat, consumers are capricious spenders, and the industry’s fate dances with the economy’s tune. In recent years, retail experienced one of its darkest chapters, laden with hurdles that dragged retail stocks into the abyss.
The pandemic forced retail to its knees, compelling closures and expensive online transitions. Exiting the crisis, companies grappled with bloated inventories as inflation soared. Consequently, the S&P Retail Select Industry Index slurped a bitter pill, down by 7% compared to three years ago.
Yet, a glimmer of hope now shines upon retail. While some stumble, the recent financial disclosures from the last quarter of the previous year flicker optimism, propelling stock values upward. Here are three remarkable retail stocks scripting unlikely triumphs in 2024.
Dick’s Sporting Goods (DKS)
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Dick’s Sporting Goods (NYSE:DKS) soared 15% in a single day post-announcing a 10% dividend hike and its largest quarterly sales in 76 years. Going forward, DKS stock shoulders a quarterly dividend of $1.10 per share, up from $1. News of the dividend uptick arrived hand in hand with earnings of $3.85 a share, crushing the $3.35 projection on Wall Street.
Q4 of 2023 witnessed a historic high of $3.88 billion in revenue, outstripping the $3.8 billion analyst consensus. Sales surged by 8% year-over-year, with same-store sales climbing 2.8%, crushing the 0.8% analyst forecast. With an outlook surpassing analyst predictions, DKS stock was catapulted upwards, boasting a 45% year-to-date surge in share price.
These figures radiate optimism toward sporting goods retail stocks. For investors eyeing victory, DKS could be the golden goose.
Ralph Lauren (RL)
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Like their peers in fashion, Ralph Lauren’s (NYSE:RL) fortunes ebb and flow with retail stock tides, mirroring broader consumer inclinations and market currents. Yet, the brand rides the crest once more among teens and young adults.
The revival of Ralph Lauren’s polo shirts with the youthful cohort has turbocharged the company’s earnings and stock. Year-to-date in 2024, RL stock gallops with a 24% gain, summing up a staggering 62% surge in share price over the past 12 months. Quite the revival for a stock that had idled for a decade.
Nonetheless, RL stock merely retraces its steps to December 2014 trading levels. Thankfully, analysts project more upswing ahead. With a current median target price of $192.33, the stock eyes over 5% growth from its current stance. Further, robust foreign sales have given Ralph Lauren’s share price wings – Q4 2023 witnessed a 30%+ jump in mainland China sales from the previous year.
Abercrombie & Fitch (ANF)
The Astounding Rise of Abercrombie & Fitch in 2024
The Retail Phenomenon: Abercrombie & Fitch Defies Expectations
Abercrombie & Fitch (NYSE:ANF) emerges as a standout in the turbulent retail sector of 2024. The company’s stock has soared by an impressive 373% over the past year, with a remarkable 38% surge in the current year. This incredible surge in the stock price, outpacing its retail counterparts, is a testament to the company’s accelerating earnings performance, consistently outperforming Wall Street predictions.
Earnings Triumph: Beating Expectations Across the Board
In a recent announcement, Abercrombie & Fitch revealed its Q4 2023 earnings per share (EPS) of $2.97, surpassing the consensus estimate of $2.83 among analysts. The company also reported revenue of $1.45 billion, exceeding the projected $1.43 billion. Notably, holiday sales for the brand surged by 21% compared to the previous year, indicating a robust consumer demand. Despite its already impressive trajectory, Abercrombie & Fitch anticipates sustained growth, forecasting a low double-digit percentage increase in sales for 2024.
Author’s Insight: A Veteran Business Journalist’s Perspective
Joel Baglole, a seasoned business journalist with two decades of experience, shares his expert analysis on the soaring success of Abercrombie & Fitch in 2024. With a remarkable track record that includes roles at prominent publications like The Wall Street Journal and contributions to financial websites such as The Motley Fool and Investopedia, Baglole provides valuable insights into the extraordinary ascent of this iconic retail brand.
