In This Article:
Key Takeaways
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Retail sales hit $729.2 billion, with sporting goods, hobby and furniture stores driving holiday sales.
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Furniture & home furnishing stores saw a 2.3% rise, while miscellaneous stores registered growth of 4.3%.
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ANG, AMZN, COST and WNT stocks reaped benefits from the strong US holiday shopping season.
The retail sector concluded 2024 on a remarkable note, signaling robust consumer spending and economic resilience. According to the Commerce Department, December retail sales rose 0.4%, building on November's upwardly revised reading of 0.8% gain. Total retail sales reached $729.2 billion, with standout performance in categories such as miscellaneous stores, sporting goods and hobby stores, and furniture and home furnishings outlets.
Consumers defied challenges spurred by a resilient labor market and steady wage growth. Retailers capitalized on the season with compelling promotional strategies, enticing shoppers to spend on big-ticket items and essentials alike. The Federal Reserve's strategic approach to rate cuts and easing inflation allowed consumers to manage their budgets better.
As Americans stepped up spending, retailers such as Abercrombie & Fitch Co. ANF, Amazon.com, Inc. (AMZN, Costco Wholesale Corporation COST and Walmart Inc. WMT reaped benefits.
Breaking Down Retail Sales Numbers
Sales at motor vehicle & parts dealers saw a month-on-month increase of 0.7%. Furniture & home furnishing stores and electronics & appliance outlets experienced a 2.3% and 0.4% rise, respectively. Sales at food & beverage stores and clothing & clothing accessories stores witnessed 0.8% and 1.5% increases, respectively.
Sales at sporting goods, hobbies, musical instruments & bookstores rose 2.6%, while receipts at gasoline stations increased 1.5%. Non-store retailers, primarily online, reported a 0.2% jump. General merchandise stores experienced a 0.3% increase in sales, while miscellaneous stores registered growth of 4.3%.
On the contrary, building material, garden equipment & supplies dealers saw a 2% decline. Sales at health & personal care stores fell 0.2%. Food services & drinking places saw a 0.3% decrease.
Past-Year Stock Price Performance of ANF, AMZN, COST & WMT
Image Source: Zacks Investment Research
4 Prominent Retail Stocks
Abercrombie & Fitch: Brand Visibility & Global Expansion
Abercrombie & Fitch stands out as a strong investment choice. The company excels in integrating digital and physical retail channels, offering a seamless shopping experience and driving higher customer satisfaction and loyalty. Strategic marketing initiatives, particularly targeted campaigns in key markets, have been effective in boosting brand visibility and customer acquisition. The introduction of innovative product lines meets specific customer needs and broadens the brand's appeal. ANF announced an upward revision in its net sales outlook for the fourth quarter, attributing to a successful holiday sales season. The company now expects fourth-quarter net sales growth to range between 7% and 8%, up from the prior forecast of 5% to 7%.
This leading, global, omnichannel specialty retailer of apparel and accessories for men, women and kids has a trailing four-quarter earnings surprise of 14.8%, on average. The Zacks Consensus Estimate for Abercrombie & Fitch’s current financial-year sales and EPS suggests growth of 15.1% and 69.3% from the year-ago period. The company sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.