Yes, you read that title right. While the overarching narrative surrounding the retail industry may be to “get out now because retail is dying,” there are still some companies out there that are worth taking a long, hard look at.
One of the biggest factors impacting retailers, of course, is e-commerce giant Amazon.com (AMZN – Free Report) . Having become much more than just an online bookseller, Amazon has grown to be a digital one-stop shop for almost everything these days. But there are certain markets that Amazon hasn’t completely dominated, and retailers operating in these particular corners of the industry are thriving.
Ulta Beauty (ULTA – Free Report), for instance, is one of the hottest retailers, if not stocks, out there right now. Its in-store and online sales continually grow quarter after quarter, and the company has built a loyal customer base through its rewards program.
The retail industry may be struggling, but it’s not dead yet. Let’s take a look at 3 retail stocks investors should consider for their portfolio.
1. Lululemon (LULU – Free Report)
Lululemon is a yoga-inspired athletic apparel company that has become a leader in the fitness world since its founding in 1998. The company makes a number of different types of athletic wear for women, men, and kids, and while it operates in the ultra-competitive “athleisure” market, Lulu has been able to stay on top because of its luxe status and loyal customer base.
In its most recent quarter, Lulu surprised investors with an all-around impressive report. Both the top and bottom line beat analyst estimates and improved year-over-year, and these positive results were driven by the company’s continued product innovation. For instance, customers have been flocking to Lulu’s $98 Enlite Bra, and the brand’s increasing appeal to men are both benefits that help set the company apart from competitors Nike (NKE – Free Report) and Gap’s (GPS – Free Report) Athleta.
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