The apparel retail
industry comprises companies such as Wal-Mart stock businesses
involved in the sale of women’s, men’s, children’s and infants’ apparel in the
categories of: formal wear, active wear, casual wear, essentials and outer
wear. Apparel retailers typically buy clothing and accessory products from the
manufacturers and wholesalers, and then market the products to general
consumers. However some apparel retailers also manufacture the clothes they
sell. The global retail industry is expected to reach almost $1.3 trillion in
2014. This would represent more than 13% expansion in five years alone. The
market share by gender is dominated by women’s wear at over 51% and the
Americas represent nearly 36% share of the entire apparel retail market.
Despite the recent
economic recession, the apparel retail industry is still growing steadily. The
gross margin for the entire industry back in 2004 was merely 22.99%, however
this increased to 36.57% in 2012. In fact according to some reports, within the
retail sector the retail apparel industry achieved the highest operating
margin. The operating margin total ranking for the apparels retail industry has
improved from a rank of 49 to 42. Additionally, the apparel retail industry’s
net profit grew by 42.74% in 2013’s 4th quarter while revenue increased
by 22.95%. Consequently this improved the retail apparel industry’s net margin
to 8.12%. The influential apparel retail companies include Next, Gap, Zara’s,
American Apparel, Abercrombie & Fitch, Ann Taylor, Victoria’s Secret,
Gymboree, American Eagle, Urban Outfitters and the likes. Gap is one of the
market leaders in the US apparel retail industry, however due to increased
competition in the US market GAP is planning to expand geographically and tap
other viable markets. With a booming middle class and rising disposable income
China has become the second largest apparel market in the world. Hence, to take
advantage of this opportunity GAP is expanding in China. GAP’s share price
today was $41.22. Gap faces the greatest competition in the US market from
American eagle, J. Crew and the TJX companies. Visit Bidnessetc.com to find out about the apparel retailers that hold
substantial market shares of the US industry.
In terms of recent
news, all the major American apparel retailers put up sales with sharply
increased their revenues. Purchases increased by 0.1% to $434 billion. This was
followed by a 1.5% jump in March that marked the biggest gain for the industry
in 4 years. These sales helped the American economy recover and steady the
consumption patterns for the rest of the years, leading somewhat to economic
growth.
Another recent trend is
the sale of retail apparel online, which has led to the rapid growth for retail
apparel than for any other product segment. In 2012 alone, the retail apparel
ecommerce sales grew by 15.4% to $224.2 billion. It is imperative hence for all
investors and shareholders to closely look at the financial and non financial
developments in the apparel retail industry. For further details and
information regarding the changes in stock prices, dividends and market shares
of US apparel retailers please visit Bidnessetc.com.
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