Yoga apparel sales grew 45% last year while participation in yoga the sport was only up 4.5%, according to industry tracking.
The disparity indicates the impressive momentum built up by the athleisure category is beyond just a fad.
Barclays forecasts that the broader retail athletic apparel market will grow by around 50% to exceed $100B by 2020.
The trend is positive for early adopters Lululemon (NASDAQ:LULU), Under Armour (NYSE:UA), Gap (NYSE:GPS), Nike (NYSE:NKE) - while a host of other retailers (LB, DKS, TJX, TGT) and department store chains (KS, BONT, DDS, M, JCP) say they will try to carve out space in the athleisure market for themselves.
On tap: Designers have their eyes on creating more men's lines and hybrid yoga-business outfits that will fly in the C-suite.
Channel checks from Deutsche Bank indicate the promotional cadence in the retail sector has been dialed back a notch from the level seen in Q1.
The investment firm sees less promotional activity from retail beasts Wal-Mart (WMT +0.3%) and Target (TGT +0.2%) - while department store chains such as Kohl's (KSS +0.7%), Nordstrom (JWN +0.6%), and Dillard's (DDS -0.1%) have also shown some improvement.
J.C. Pennney (JCP +1%) is a tougher nut to crack for DB with its radical changes in pricing strategy making the year-over-year comparison less informative.
Some out-of-favor department store stocks are showing tidy gains today, led by J.C. Penney (JCP +8.3%) and Sears Holdings (SHLD +3.3%).
Though there have been a few positive signs in the retail sector that momentum has picked up following a sluggish Q1, today's action is tied to some momentum buying following an extended beating on the sector from investors.
Dillard's (DDS +0.7%), Macy's (M +1.1%), and Bon-Ton Stores (BONT +1.9%) are also out-performing mildly on the day.
Gutting out high-end merch: $10 shirts! = margin, Q1 & Q2 kill. Bet negative comps too boot.$DDS
Apr 9, 10:30 AM
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DDS vs. ETF Alternatives
Dillard's, Inc., operates as fashion apparel, cosmetic and home furnishing retailer. The Company also operates a general contracting construction company engaged in constructing and remodeling stores of the Company.