Fashion statement
In these lean times, being different can make a difference for apparel makers and retailers. The shopper today is “clearly holding back on the amount she spends on clothing. If it is not really interesting, or if she already has it, why is she going to spend money?” says RBC Capital Markets analyst Howard Tubin.
Lululemon Athletica Inc., known for yoga-inspired athletic wear, saw samestore sales, or sales in stores open at least a year, a key retail metric, grow 28 percent in the First quarter. “There’s not a whole lot of other apparel or athletic apparel as differentiated as what you can find in a Lululemon store,” says Tubin.
For Urban Outfitters Inc. and its Anthropologie and Free People stores, samestore sales rose 10 percent in May. “All three concepts continue to showcase some of the most fashion-forward product in the mall,” writes Friedman, Billings, Ramsey analyst Adrienne Tennant, who rates its shares “outperform.”
Another standout is Deckers Outdoor Corp., which makes UGGs sheepskin boots. “It’s not only the boot anymore, it’s a full collection of warm weather and cold weather footwear,” Tubin says.
