BUZZ-Abercrombie & Fitch rallies among US apparel; cosmetics retailers face heat in 2024

Reuters2024-12-31

** Apparel retailers Abercrombie & Fitch , Gap

and VF Corp outpaced rivals in a year marked by frugal and picky consumers motivated by trendy and discounted products

** Popularity of Hollister and namesake Abercrombie brand boosted ANF stock by 75% this year, after a nearly three-fold rise last year

** In contrast, Aerie parent American Eagle Outfitters

and high-end retailer Lululemon Athletica reversed gains made in 2023 to fall more than 20% each this year

** Sportswear giant Nike , with new CEO Elliott Hill at helm and turnaround efforts underway, continued to slump for a third straight year

** On Holding and Hoka parent Deckers Outdoor

gained market share at Nike's expense, with ONON shares up more than two-fold

** Uncertain China recovery and soft sales of beauty and cosmetics products in U.S. hit luxury retailers Estee Lauder

and CoverGirl parent Coty

** Demand for pricey cashmere sweaters benefitted Ralph Lauren shares for a second year in row, up 61%, while Coach parent Tapestry gained ~79% as it terminated a merger deal with Capri

** Department store operators Macy's and Kohl's

struggled as middle-income shoppers pivoted to cheaper options; M slumps for third year in row, while KSS fell 51%

** Nordstrom , which agreed to a $4 bln take-private deal from its founding family, was up 30%

** Broader S&P Composite 1500 Apparel Retail Index

up ~25% YTD, while S&P Composite 1500 Apparel, Accessories & Luxury Goods down 6%, up to last close

Apparel, footwear companies

Company RIC 2024 2023 2022

YTD

Abercrombie & ANF.N 75.30 285% -34.2

Fitch Co % 0%

Gap Inc GAP.N 12.60 85.40 -36.0

% % 9%

Levi Strauss & LEVI. 4.84% 6.60% -38%

Co N

VF Corp VFC.N 13.88 -31.9 -62.3

% 0% 0%

Lululemon LULU. -24.9 59.60 -18.2

Athletica Inc O 0% % 0%

American Eagle AEO.N -22.5 51.60 -44.8

Outfitters 0% % 7%

Guess Inc GES.N -34.5 11.45 -12.6

5% % 0%

Under Armour UAA.N -6.60 -13.5 -52.0

% 0% 5%

G-III Apparel GIII. -4.40 147.8 -50.4

Group Ltd O % 5% 0%

Nike Inc NKE.N -31.2 -7.20 -29.8

0% % 0%

On Holding ONON. 104.6 57.20 -54.6

N 0% % 0%

Deckers DECK. 84.70 67.50 8.97%

Outdoor O % %

Macy's M.N -15.8 -2.57 -21.1

% % 2%

Kohl's KSS.N -51.2 13.58 -48.8

% % 8%

Nordstrom JWN.N 31.1% 14.3% -28.6

5%

Luxury and beauty companies

Company RIC 2024 YTD 2023 2022

Tapestry TPR.N 79.30% -3.34% -6.21%

Ralph Lauren RL.N 63.30% 36.46% -11.10%

Coty Inc COTY.N -43.96% 45.09% -18.48%

Estee Lauder EL.N -49.12% -41.05% -32.98%

Ulta Beauty ULTA.O -10.40% 4.46% 13.76%

Canada Goose GOOS.TO -9.72% -34.63% -48.60%

Capri CPRI.N -58.90% -12.35% -11.69%

(Reporting by Savyata Mishra in Bengaluru)

((Savyata.Mishra@thomsonreuters.com))

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