The demand for clothing is expected to rise during the holiday season, with an increasing focus on sustainable or recycled clothing. Hence, we think it could be wise to bet on quality low-priced clothing retail stocks H & M (HNNMY), Chico’s FAS (NYSE:CHS), and Vera Bradley (NASDAQ:VRA). Let’s discuss.The prices of several goods, including clothing and apparel, are set to increase this holiday season, due primarily to the COVID-19 omicron variant-driven logistical disruptions in industry. However, consumer demand for clothing is not expected to decline soon.
Indeed, according to a Forbes report, the demand for second-hand clothing is growing, and recycled clothes are expected to become mainstream in 2022. In addition, the e-commerce fashion industry is skyrocketing. According to a Statista report, the global fashion e-commerce industry is expected to grow at a 9.1% CAGR between 2021 – 2025.
Given this backdrop, we think it could be wise to bet on fundamentally sound clothing retail stocks H & M Hennes & Mauritz AB (HNNMY), Chico’s FAS, Inc. (CHS), and Vera Bradley, Inc. (VRA), which are each trading at less than $10 per share.