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Investor sentiment among the apparel, footwear and fitness industry has improved after inventory is now much better positioned, and there are some quality growth stories within, according to a Baird Morning Note.
Analysts are incrementally positive on Boot Barn Holdings Inc. (NYSE:BOOT) — new price target raised to $132 — and remain bullish on Crocs Inc. (CROX).
These are some positive factors in the industry:
- Consumer spending indicators have stabilized. Companies are now more “cautiously optimistic” as they await higher-volume seasons, such as Father’s Day.
- The industry is now past its peak inventory, and spending conditions have mostly normalized, Analyst Jonathan R. Komp wrote.
- Also, “consumers have turned more intentional, concentrating purchases behind key brands and items…[suggesting] a likely continued wide performance gap favoring recent winners,” such as Crocs (CROX), “and categories with tailwinds.”
Baird analysts also rate as “outperform” the following stocks: On Holding AG (ONON), Planet Fitness Inc. (PLNT), NIKE Inc. (NKE), Deckers Outdoors Corp. (DECK), and Amer Sports Inc. (AS).
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