2 Retail Stocks to Buy Before Black Friday Boosts

These two retail stocks are solid options to consider based on already stellar earnings growth, and even more expected in for Black Friday!

| More on:
Beautiful holiday decorated background with christmas gift boxes ,fir. christmas holiday concept

Image source: Getty Images

Retail stocks are some of the best investments right now. And it’s not just because of the pandemic. Sure, the easing of restrictions and increased vaccination rates mean more people can get out shopping. In fact, Canada now has 75% of Canadians fully vaccinated. That’s 75% of the country able to get out and start shopping this holiday season.

And that’s the next key. We’re still on the verge of a holiday rush. Canadians last year were forced indoors to do their shopping online over the weekend. Now, they have access to both in-store and online shopping. And after about a year and a half of being online, it’s highly likely we’ll see a massive boost in retail stocks post-Black Friday.

With that in mind, here are two of the top retail stocks I would consider for a Black Friday boost.

Canada Goose

Canada Goose Holdings (TSX:GOOS)(NYSE:GOOS) continues to climb higher and higher, especially post-earnings. Canada Goose stock announced that sales continue to climb, especially in China where the company opened stores pre-pandemic.

Total revenue for the last quarter jumped 20% year over year, and despite net income dropping by 13%, its management remains confident it will achieve a strong fiscal 2022 among retail stocks — so confident it increased its annual guidance. Management now believes Canada Goose stock could reach a total revenue of $1.125 billion or higher, instead of the $1 billion predicted before.

This comes from improved economic conditions for retail stocks, and the continued lessening of COVID-19 restrictions. Even still, e-commerce was up 33.8% year over year, demonstrating consumers are comfortable with buying online.

Finally, Canada Goose stock will be able to take advantage of new sales from its brand-new shoe line. Leading manufacturers at big-box chains will carry its luxury footwear just in time for the holidays. Shares of Canada Goose stock are up 71% year to date and 30% post-earnings.

Gildan

Gildan Activewear (TSX:GIL)(NYSE:GIL) will benefit from much of the same reasons as Canada Goose stock and other retail stocks. The recent jump in share price comes after Gildan stock sales increased 33% year over year to $801.6 million in the third quarter, with more to look forward to for investors.

Gildan stock can state it’s now recovered from the pandemic losses of 2020 during lockdowns. But now it’s on a tear, with sales attributed to growing demand and in-store sales, as well e-commerce growth. Adjusted operating income more than doubled to $172.4 million, improving its cash flow to $464 million from $123 million. The company beat both revenue and sales estimates for the quarter.

But it’s not over. Gildan stock continues to climb due to a boost among retail stocks. The combination of retail, consumer technology, and e-commerce all drive further sales in the near future. Its Back to Basics campaign worked for the t-shirt, socks, and underwear company, and will likely mean more sales increases in the near future. Even with supply chain and inflation demands taken into consideration.

Shares of Gildan stock are up 50% year to date, and 20% post-earnings.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool recommends GILDAN ACTIVEWEAR INC.

More on Investing

money cash dividends
Stocks for Beginners

The Best Stocks to Buy With $500 Right Now

Do you have $500 to spare after your Christmas shopping? Here are three top Canadian stocks that are primed to…

Read more »

tsx today
Energy Stocks

TSX Today: What to Watch for in Stocks on Thursday, December 8

TSX stocks may remain volatile ahead of the U.S. inflation data and the Fed’s interest rate decision, which are due…

Read more »

Pipeline
Dividend Stocks

Enbridge Is a High-Yielding Canadian Dividend Stock to Buy Now and Own Forever

Are you looking for a high-yielding Canadian dividend stock to buy? Enbridge (TSX:ENB) has plenty to offer investors.

Read more »

sale discount best price
Stocks for Beginners

3 TSX Growth Stocks You Can Buy at a Screaming Discount

These three growth stocks remain screaming buys, given their track records of growth and future opportunities for investors.

Read more »

Retirees sip their morning coffee outside.
Dividend Stocks

Why I’d Buy These 2 Healthcare Stocks Today (Besides the Cheap $10 Price)

Two small-cap stocks trading under $10 worth buying right now as promising healthcare plays in 2023.

Read more »

woman data analyze
Investing

Better Buy: Telus Stock or BCE?

Telus (TSX:T) and BCE (TSX:BCE) are dividend-growth stocks that seem like worthy pick-ups ahead of a recession year.

Read more »

Silver coins fall into a piggy bank.
Dividend Stocks

3 Dividend Stocks to Build Wealth in the New Year

These dividend stocks have proven they're set up for a strong future and have dividends you'll want to lock up…

Read more »

Dad and son having fun outdoor. Healthy living concept
Tech Stocks

Prediction: These Will Be 2 of the Strongest TSX Stocks in 2023

Tech stocks may have dropped during the last few years, but these two TSX stocks are bound for major growth…

Read more »