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.
