Their Stores Are Closed, but These 2 Apparel Stocks Are Still Buys
Apparel stores have been closed for weeks, and it might be several more months before the industry returns to the sales mark it had reached before the pandemic. Those facts make it a risky time to consider buying clothing stocks, which will be reporting slumping revenue for at least the fiscal second quarter -- and perhaps beyond.
The sports apparel niche has a brighter outlook, in part because the leading companies have already built up robust e-commerce networks. Their inventories are less seasonal, too, meaning there's reduced risk of costly writedowns ahead.
With that in mind, let's look at why Nike (NYSE: NKE) and lululemon athletica (NASDAQ: LULU) look like good buys today even as most of their stores sit empty.
Source Fool.com
