What didn’t you do during the Covid-19 pandemic lockdowns of 2020? You probably have a long list of answers to this question. But let me wager a guess as to an answer that is on everyone’s list: You didn’t buy new clothes.
I bought a new pair of Crocs (NASDAQ:CROX) in summer 2020, which I’ve since fallen in love with and now wear to the gym, dinners, and the beach (yes, I’m that guy… and proud of it!). But outside of that, I didn’t spend a dime on new clothes during the pandemic. And I’m not alone.
Consumer spending at clothing stores fell off a cliff during the pandemic lockdowns of 2020. In March, clothing spending fell as much as 80% … and clothing spending growth rates remained sharply negative all the way until late summer!
Of course, this lack of new clothes spending has resulted in stale and antiquated wardrobes across America.
I don’t know about you, but my wardrobe is full of shirts, jeans, and shoes I bought several years ago – except for that pair of Crocs, of course.
And now, a lot of us are going back outside again. We are going back to the office. We are going back to dinners. We are going back to the gym. We are going back to bars, cafes, and concerts.
And – here’s the kicker – we are doing all of those things in the same clothes we bought back in 2019.
For some folks, that’s totally fine. Take me, for example. I’m fine wearing the same clothes I bought in 2019 to the office, a restaurant, or the gym in 2021. But I’m also the guy who wears Crocs everywhere, so, admittedly, I am the anomaly here…
As for everyone else, well, they’re buying new clothes.
Best Stocks to Buy for the Return-to-Normal Clothing Boom
Data compiled from Bank of America credit and debit card transactions shows that spending on clothing apparel has surged over the past few months, with this spending boom only picking up momentum in recent weeks.
It’s a return-to-office clothing boom… and a return-to-the-gym clothing boom… and a return-to-nightlife clothing boom.
Folks, this is a return-to-normal clothing boom that encompasses every quasi-social activity we haven’t partaken in over the past 12 months, but which we are increasingly doing with regular frequency as we head into the summer.
So, how should you play this boom?
By buying clothing and retail stocks, of course! But not any, ole’ clothing and retail stock – after all, this is an antiquated industry riddled with companies on the wrong side of the tectonic shift from physical to virtual shopping.
Rather, to play the return-to-normal clothing boom, you have to buy only the best clothing and retail stocks.
And the best of the best in this space is Stitch Fix (NASDAQ:SFIX).
Stitch Fix provides online personalized styling services to customers, and the company represents the cream-of-the-crop in the return-to-normal clothing boom because it finds itself on the right side of two seismic shifts in retail.
The first, of course, is the shift toward buying clothes online. Right now, about 30% of apparel shopping happens online. That number will creep toward 50% and higher over the next decade, as things like augmented reality make it easier for shoppers to virtually “try on” new clothing items from the comfort of their own home.
The second is the shift toward data-driven personalized shopping. The shopping world has no shortage of options. In fact, most would argue it has too many options. Fortunately, we can use data to curate those options for each individual, by matching shopper preference with clothing data to create hyperpersonalized clothing recommendations for everyone. This level of data-driven hyper-personalization represents the future of shopping.
Stitch Fix is the hyperpersonalized virtual shopping assistant of the future – a platform that consumers everywhere will use to making clothes shopping as easy as it’s ever been through finding clothes personally tailored for them online.
This platform really came into its own during the pandemic. And now, it’s ready for the spotlight – as Stitch Fix will, over the next few years, go from a niche platform for fashionistas to a ubiquity in the clothes shopping world.
To be sure, Stitch Fix stock has already been on a big run. Shares are up 175% over the past year. But trust me when I say there is plenty more upside left in this name…
Having said that, wouldn’t it have been nice to buy Stitch Fix stock before its huge Covid-19 rally? And be sitting on triple-digit gains today? Knowing the stock is only going to go higher and you’re going to cash out for potentially 10X gains?
Well, that’s exactly what happened to subscribers of my my ultra-exclusive research advisory service, Innovation Investor.
My track record speaks for itself. For example, in mid-July of 2020, I told subscribers of my Daily 10X service about Stitch Fix stock… and those subscribers have since witnessed peak gains of 330%.
You, too, could be sitting on triple-digit gains in Stitch Fix stock already, had you just subscribed to my premium newsletters.
So… what’re you waiting for?
Click here, sign up now, and get in on the next big stock pick before it surges hundreds of percent.
On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.
By uncovering early investments in hypergrowth industries, Luke Lango puts you on the ground-floor of world-changing megatrends. It’s the theme of his premiere technology-focused service, Innovation Investor. To see Luke’s entire lineup of innovative cutting-edge stocks, become a subscriber of Innovation Investor today.