Retail sales increased for the third straight month in October, and demand in the apparel retail industry is expected to remain high amid the holiday season. Consequently, Wall Street analysts expect quality apparel retail stocks Abercrombie & Fitch (ANF) and Tilly's (NYSE:TLYS) to rally more than 35% in price in the coming months. Read on.Investors grew concerned when the consumer price index rose 6.2% year-over-year in October 2021, its biggest climb since December 1990. Furthermore, current supply chain constraints continue to perplex retailers. However, according to Statista, apparel sales in the United States grew by 47.5% year-over-year in October 2021. And retail sales increased by 1.7% in October 2021, its third straight monthly advance.
The holiday season sales started earlier this year, benefiting retailers. And the apparel retail industry is expected to grow further with an increased focus on e-commerce. According to a Technavio report, the online apparel retailing market is expected to grow at a 10.6% CAGR through 2025.
Hence, Wall Street analysts expect quality apparel retail stocks Abercrombie & Fitch Co. (ANF) and Tilly's, Inc. (TLYS) to rally by 35% or more in price in the near term. So, we think these stocks could be good additions to one's portfolio.