Despite suffering several business constraints related to the COVID-19 pandemic, the fashion industry has now reclaimed its pre-pandemic levels, thanks in many respects to its efforts in strengthening digital platforms. Furthermore, rising consumer spending and pent-up demand are fueling the fashion industry’s growth. We think these factors should help fundamentally sound fashion stocks Signet Jewelers (NYSE:SIG), Oxford Industries (NYSE:OXM), Caleres (NYSE:CAL), and Movado (MOV) deliver solid returns in the coming months. Let’s discuss these names.While the fashion industry experienced diminished sales and profits last year due to the COVID-19 pandemic, the industry is forging ahead with new trends and ideas this year. Its efforts to strengthen digital platforms have contributed mightily to the industry’s revival this year. Also, rising consumer spending with the improving job market and pent-up demand are key driving forces behind the fashion market’s growth. According to a Statista report, the fashion segment’s revenue is projected to reach $898.67 billion in 2021.
Fashion companies’ reshaped business models, streamlined operations, and sharpened customer propositions are powering the industry’s growth. Furthermore, with the steady rise in vaccination rates and the upcoming holiday season, the sector is projected to witness a significant boost in brick-and-mortar store sales.
Given this backdrop, if one has $4,000 in disposable cash, we think betting it on Signet Jewelers Limited (SIG), Oxford Industries, Inc. (OXM), Caleres, Inc. (CAL), and Movado Group, Inc. (NYSE:MOV) could be rewarding. These fashion stocks are expected to deliver significant returns in the near term based on their strong positions in the market and diverse portfolios.