Shoppers Want Revenge. Is Kanye the Answer?
Consumers are ready to indulge in fashion again after months spent mostly at home. But are Gap and Macy’s really poised to be the big winners?
Gap may have Kanye West as a partner, but investors may be overly optimistic about the tired retailer’s prospects.
Photographer: Rich Fury/Getty Images for Coachella
With vaccine jabs in their arms and fresh stimulus checks in their bank accounts, consumers are primed to spend big in the next several months — and not as they did during last year’s lockdowns, when home improvements, household items and outdoor gear were among the hot items.
As life starts to return to some form of normal, investors are betting that major clothing chains will be big beneficiaries. The best-performing stock in the S&P 500 Index year to date is L Brands Inc., corporate parent of Victoria’s Secret and Bath & Body Works. Gap Inc. shares have soared 52% this year, an increase that roughly matches the advance in American Airlines Group Inc. shares amid a resurgence in travel. And Macy’s Inc., Dillard’s Inc. and Kohl’s Corp. have each increased more than 40% this year.