With Americans spending more money than ever on footwear it is the perfect time to invest in stocks that offer a channel into this growth. We have recommended two companies, Boot Barn & Shoe Carnival, that we believe could support your feet as well as your investments.
A study posted by the U.S. Bureau of Economic analysis stated that revenues for both clothing and footwear increased almost 30% in the last 8 years from $322 billion in 2009 to a record high of $418 billion in 2017. Furthermore, Statista stated that revenue in the footwear market alone will amount to $83.7 billion in 2018.
With the popular stereotype and opinion being that women are shoe crazed, the following statistic may surprise you – men are are a very large part of the market. Research firm NPD Group Inc. reported that in 2016 men in the United States spent about $26.2 billion on shoes which increased from $23.8 billion in 2014. The new trend in men’s fashion is to dress from the shoes up, with the footwear being the center of the outfit.These numbers are in comparison to women’s statistics, where spending on shoes have lingered around the $30 billion dollar mark.
There are a fair amount of footwear companies benefiting from the new found growth in the industry. With that in mind, we want to highlight two companies, Boot Barn & Shoe Carnival, that possess very strong fundamentals and financial metrics.
The foundation of our recommendations is to identify companies that hold the collective characteristics of value, growth, EPS revisions, profitability, and LT momentum. The CressCap systematic trading model gathers data daily on 6,500 companies globally and assigns academic grades (A – F) for each financial metric. These grades are scored relative to its region/sector.
