The luxury retail industry's recovery is being fueled by a supercharged economy, a solid vaccination drive, and a rebound in discretionary spending. Given the industry’s attractive growth prospects, we believe luxury retail stocks Burberry (BURBY), Hugo Boss (BOSSY), and Signet Jewelers (NYSE:SIG) are well-positioned to develop strong momentum in the coming months. So, let’s discuss these names.As the major global economies witness a robust recovery following a devastating pandemic-induced recession, luxury retail stores and online platforms are expected to see a substantial growth in sales on the back of a surge in discretionary spending. Consumer spending, which accounts for more than two-thirds of U.S. economic activity, surged at an annual rate of 11.4% in the first three months of 2021.
Because consumers are diving into retail shopping again and physical stores are returning to operational full capacity, luxury retailers are expected to generate solid sales growth. With more luxury brands embracing e-commerce platforms to boost their sales amid shifting consumer tastes and preferences, they are expected to benefit significantly.
Given the spending tsunami as the economy ramps up, we think luxury retailers Burberry Group plc (OTC:BURBY), Hugo Boss AG (BOSSY), and Signet Jewelers Limited (SGI) are well-positioned to benefit. So, these stocks could be solid bets now.