As the economic restrictions are relaxed all over the world, retail stocks are poised for a strong comeback by the end of 2021. Retail companies such as Under Armour (NYSE:UA) (UAA) and Ralph Lauren (NYSE:RL) have outperformed the broader indexes year to date and have reported stellar results for the June quarter.The earnings season is in full swing which means the stock market will continue to remain volatile in the near term as quarterly results of companies will impact their stock prices.
Here, we take a look at two retail players, Under Armour (UAA) and Ralph Lauren (RL), that have surprised Wall Street as they reported better than expected earnings in the last quarter. The retail sector has been under the pump in the last 16 months as several countries imposed economic restrictions that severely impacted top-line growth.
However, as the vaccination rollout has gained pace and restrictions are relaxed, stocks part of the retail sector are poised for a comeback. Let’s see if Under Armour and Ralph Lauren can continue to deliver outsized gains and end 2021 on a high.