{"id":4158,"date":"2023-10-22T05:42:32","date_gmt":"2023-10-22T05:42:32","guid":{"rendered":"https:\/\/infundpros.com\/investment\/opinion-revenge-travel-is-over-shoppers-are-spending-on-goods-again-and-these-3-retailers-could-benefit\/"},"modified":"2023-10-22T05:42:33","modified_gmt":"2023-10-22T05:42:33","slug":"opinion-revenge-travel-is-over-shoppers-are-spending-on-goods-again-and-these-3-retailers-could-benefit","status":"publish","type":"post","link":"https:\/\/infundpros.com\/?p=4158","title":{"rendered":"Opinion: \u2018Revenge travel\u2019 is over. Shoppers are spending on goods again and these 3 retailers could benefit."},"content":{"rendered":"

With summer travel season winding down and holiday gift-giving season ahead, consumers are shifting their spending to goods from services. So, this is a good time to buy retail stocks. Corporate insiders certainly agree. They\u2019ve buying at several retail sector companies, including the three highlighted below.\u00a0<\/p>\n

But first, more on that spending shift.\u00a0\u201cIt\u2019s time for goods to be good,\u201d JPMorgan Chase economist Bruce Kasman wrote in a recent research note. \u201cA broader rebound in global consumer goods spending is underway. The case for a rebound in global industry is building.\u201d\u00a0<\/p>\n

\n

Kasman points to several signposts. For starters, supply chain disruptions continue to ease, which puts downward pressure on prices, making goods more attractive. Global auto sales bottomed last quarter. Orders for goods in general are up, around the world. <\/p>\n

Shoppers have increased spending at stores by a surprising amount. U.S. retail sales grew 0.7% in September compared to the month before, against an estimated 0.3% gain, the Commerce Department reported this week. Growth was strongest at miscellaneous retailers (up 3% vs. August), auto dealers (up 1.1%) non-store retailers (1.1%).\u00a0<\/p>\n

Putting these trends together, Kasman notes that he expects a 3% rise in global manufacturing in the second half of this year.\u00a0<\/p>\n

Meanwhile, service-sector demand appears to be weakening. September airfare increased 0.3% compared to a 4.9% jump in August, notes Charles Schwab Chief Investment Strategist Liz Ann Sonders. A look ahead to the holiday travel season confirms the trend.\u00a0<\/p>\n

\u201cEarly data about holiday travel indicates revenge travel may have run its course,\u201d notes Ed Yardeni of Yardeni Research. Prices for holiday air travel and car rentals are down a lot compared to last year. Flights around Christmas are 12% cheaper than in 2022. Thanksgiving airfares are 14% lower and car rentals 17% lower than last year.\u00a0<\/p>\n

Travel-related stocks tell the same story. They are down a lot from the summer, predicting weaker business trends ahead. Here\u2019s a chart from Yardeni Research:\u00a0<\/p>\n

<\/p>\n

<\/p>\n

<\/p>\n
<\/div>\n<\/figure><\/div>\n

Not to get too wonky, but upstream indicators for services also point to a cooling off. Institute for Supply Management (ISM)\u00a0service sector data for September show signs of cracks in demand. The percentage of service sector companies saying business activity was lower was elevated in September and August at 10.7% and 16.5%, vs. 7.5% in July and 9.7% in June.\u00a0<\/p>\n

Retail stocks also look interesting because they have underperformed this year, notes Goldman Sachs chief U.S. equity strategist David Kostin.\u00a0<\/p>\n

The bottom line: Consumers continue to have a lot of buying power because of ongoing jobs and wage growth \u2014 plus elevated savings. Cash socked away was recently revised up threefold to $1.2 trillion, by the Bureau of Economic Analysis. Boomers collectively have net worth of $77 trillion. Going forward, consumers will be deploying more of this spending power on goods vs. services, benefitting retailers. I look at insider buying closely; here are three stocks that stand out:\u00a0<\/p>\n

1.<\/strong> Victoria\u2019s Secret (VSCO)<\/strong><\/p>\n

Victoria\u2019s Secret
\n VSCO,
\n +8.06%<\/bg-quote>
\n sells lingerie, apparel and personal care products under the Victoria\u2019s Secret, PINK and Adore Me brands.\u00a0 International sales growth has been strong, but U.S. sales were recently quite weak and that\u2019s pulled the stock down more than 60% from its February peak. Overall, second quarter sales (for the quarter ending in July) fell 6%, to $1.4 billion compared to the year before, and comparable sales (at stores open more than a year) decreased 11%.\u00a0<\/p>\n

The travel craze probably had something to do with this. Likewise, the shift back to goods spending going forward should perk up sales.\u00a0Victoria\u2019s Secret managmeent expresses high hopes for the rest of the year, citing several fresh tactics. \u201cOur outlook calls for improving sales trends throughout the fall season,\u201d CEO Martin Waters has said. \u201cWe entered the third quarter with relatively lean inventory levels, and I am encouraged by August sales trends which were better than July.\u201d\u00a0<\/p>\n

The company adds that it has improved its loyalty program. A new marketing campaign for PINK is being launched, and its September Victoria\u2019s Secret World Tour \u201923 may boost sales. As for insider support, finance chief Timothy Johnson bought $343,000 worth of stock recently at $17.16.\u00a0<\/p>\n

2. Five Below (FIVE)<\/strong><\/p>\n

Five Below
\n FIVE,
\n -0.58%<\/bg-quote>,<\/span>
\n a Philadelphia-based specialty retailer, offers clothes and other goods mostly priced at $5 or lower \u2014 targeting the teen and tween markets. Besides clothes, it offers jewelry, hair accessories, \u201cattitude\u201d t-shirts, sports merchandise, art supplies and candy.\u00a0<\/p>\n

The company posted second-quarter sales of $1.48 billion. Most of that was due to 67 store openings. Still, comparable sales increased by 2.7% which isn\u2019t bad. Management expects similar growth ahead. \u201cAs we look to the second half of the year, our merchants have sourced a terrific line-up of fresh, trend-right product at outstanding value for the holiday season,\u201d CEO Joel Anderson said.\u00a0<\/p>\n

Managers are always bullish. I like to look for the ones backing their words with cash. In early September Anderson bought $500,000 worth of stock at $161.50. The stock is higher now at $176, but the trend towards buying more goods again should still help move it up from here. Insiders do not buy for short-term moves.\u00a0<\/p>\n

3. Crocs (CROX)<\/strong><\/p>\n

Since peaking at $150 back in April, the shares of this ugly shoe company have fallen 42% to $87. In the pullback the right kind of insiders have shown up to purchase Crocs
\n CROX,
\n +1.31%<\/bg-quote>
\n shares in a way that provides a powerful buy signal.\u00a0<\/p>\n

Crocs sells casual footwear and accessories. Most of its footwear is made out of its proprietary Croslite\u00a0material, which gets good reviews for comfort. Crocs has been making shoes since it rolled out its original clogs in 2002. It has expanded into sandals, wedges, flips, and slides. It also sells Jibbitz charms. It recently purchased Hey Dude, a shoe company.\u00a0<\/p>\n

Crocs posted solid second-quarter sales growth of 12%, with 31.4% earnings growth. That was fueled by sales in Asia. Recently, investors have been clearing out of China stocks on concerns about economic growth there. This \u2013 plus the focus on revenge travel spending \u2014 might help explain Crocs\u2019 share-price weakness.\u00a0<\/p>\n

In the pullback, a cluster of company insiders purchased more than $2 million worth of stock in August. Such concerted buying is a bullish signal in insider analysis. The buyers also have good records for timing. The buying happened in the $95 to $111 range, and the stock is lower now.\u00a0<\/p>\n

Michael Brush is a columnist for MarketWatch. At the time of publication, he owned CROX. Brush has suggested CROX in his stock newsletter,\u00a0Brush Up on Stocks. Follow him on X @mbrushstocks<\/em><\/p>\n

More: <\/strong>What\u2019s fueling consumers\u2019 \u2018surprising\u2019 spending power? Refinanced mortgages play a role, NY Fed says<\/p>\n

Plus: <\/strong>Birkenstock\u2019s IPO was one of the worst debuts for a billion-dollar deal in a decade<\/p>\n<\/p><\/div>\n

Read the full article here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

With summer travel season winding down and holiday gift-giving season ahead, consumers are shifting their spending to goods from services. So, this…<\/p>\n","protected":false},"author":1,"featured_media":4159,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[24],"tags":[],"class_list":{"0":"post-4158","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-investment"},"yoast_head":"\nOpinion: \u2018Revenge travel\u2019 is over. Shoppers are spending on goods again and these 3 retailers could benefit. | inFundPros<\/title>\n<meta name=\"description\" content=\"With summer travel season winding down and holiday gift-giving season ahead, consumers are shifting their spending to goods from services. So, this is a\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/infundpros.com\/?p=4158\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Opinion: \u2018Revenge travel\u2019 is over. Shoppers are spending on goods again and these 3 retailers could benefit. | inFundPros\" \/>\n<meta property=\"og:description\" content=\"With summer travel season winding down and holiday gift-giving season ahead, consumers are shifting their spending to goods from services. So, this is a\" \/>\n<meta property=\"og:url\" content=\"https:\/\/infundpros.com\/?p=4158\" \/>\n<meta property=\"og:site_name\" content=\"inFundPros\" \/>\n<meta property=\"article:published_time\" content=\"2023-10-22T05:42:32+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-10-22T05:42:33+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/infundpros.com\/wp-content\/uploads\/2023\/10\/1697953352_social.jpeg\" \/>\n\t<meta property=\"og:image:width\" content=\"1280\" \/>\n\t<meta property=\"og:image:height\" content=\"640\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Press Room\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Press Room\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"5 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/infundpros.com\/?p=4158#article\",\"isPartOf\":{\"@id\":\"https:\/\/infundpros.com\/?p=4158\"},\"author\":{\"name\":\"Press Room\",\"@id\":\"https:\/\/infundpros.com\/#\/schema\/person\/87f7e632b195ea95c91503d9281f5eff\"},\"headline\":\"Opinion: \u2018Revenge travel\u2019 is over. Shoppers are spending on goods again and these 3 retailers could benefit.\",\"datePublished\":\"2023-10-22T05:42:32+00:00\",\"dateModified\":\"2023-10-22T05:42:33+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/infundpros.com\/?p=4158\"},\"wordCount\":1110,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/infundpros.com\/#organization\"},\"articleSection\":[\"Investment\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/infundpros.com\/?p=4158#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/infundpros.com\/?p=4158\",\"url\":\"https:\/\/infundpros.com\/?p=4158\",\"name\":\"Opinion: \u2018Revenge travel\u2019 is over. Shoppers are spending on goods again and these 3 retailers could benefit. | inFundPros\",\"isPartOf\":{\"@id\":\"https:\/\/infundpros.com\/#website\"},\"datePublished\":\"2023-10-22T05:42:32+00:00\",\"dateModified\":\"2023-10-22T05:42:33+00:00\",\"description\":\"With summer travel season winding down and holiday gift-giving season ahead, consumers are shifting their spending to goods from services. So, this is a\",\"breadcrumb\":{\"@id\":\"https:\/\/infundpros.com\/?p=4158#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/infundpros.com\/?p=4158\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/infundpros.com\/?p=4158#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/infundpros.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Opinion: \u2018Revenge travel\u2019 is over. Shoppers are spending on goods again and these 3 retailers could benefit.\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/infundpros.com\/#website\",\"url\":\"https:\/\/infundpros.com\/\",\"name\":\"Fintech Advance\",\"description\":\"Latest Finance and Tech News and Updates\",\"publisher\":{\"@id\":\"https:\/\/infundpros.com\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/infundpros.com\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/infundpros.com\/#organization\",\"name\":\"Fintech Advance\",\"url\":\"https:\/\/infundpros.com\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/infundpros.com\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/infundpros.com\/wp-content\/uploads\/2023\/10\/tech-logo.png\",\"contentUrl\":\"https:\/\/infundpros.com\/wp-content\/uploads\/2023\/10\/tech-logo.png\",\"width\":409,\"height\":70,\"caption\":\"Fintech Advance\"},\"image\":{\"@id\":\"https:\/\/infundpros.com\/#\/schema\/logo\/image\/\"}},{\"@type\":\"Person\",\"@id\":\"https:\/\/infundpros.com\/#\/schema\/person\/87f7e632b195ea95c91503d9281f5eff\",\"name\":\"Press Room\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/infundpros.com\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/infundpros.com\/wp-content\/uploads\/2023\/10\/avatar_user_1_1697230663-96x96.png\",\"contentUrl\":\"https:\/\/infundpros.com\/wp-content\/uploads\/2023\/10\/avatar_user_1_1697230663-96x96.png\",\"caption\":\"Press Room\"},\"sameAs\":[\"https:\/\/infundpros.com\"],\"url\":\"https:\/\/infundpros.com\/?author=1\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Opinion: \u2018Revenge travel\u2019 is over. Shoppers are spending on goods again and these 3 retailers could benefit. | inFundPros","description":"With summer travel season winding down and holiday gift-giving season ahead, consumers are shifting their spending to goods from services. So, this is a","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/infundpros.com\/?p=4158","og_locale":"en_US","og_type":"article","og_title":"Opinion: \u2018Revenge travel\u2019 is over. Shoppers are spending on goods again and these 3 retailers could benefit. | inFundPros","og_description":"With summer travel season winding down and holiday gift-giving season ahead, consumers are shifting their spending to goods from services. So, this is a","og_url":"https:\/\/infundpros.com\/?p=4158","og_site_name":"inFundPros","article_published_time":"2023-10-22T05:42:32+00:00","article_modified_time":"2023-10-22T05:42:33+00:00","og_image":[{"width":1280,"height":640,"url":"https:\/\/infundpros.com\/wp-content\/uploads\/2023\/10\/1697953352_social.jpeg","type":"image\/jpeg"}],"author":"Press Room","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Press Room","Est. reading time":"5 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/infundpros.com\/?p=4158#article","isPartOf":{"@id":"https:\/\/infundpros.com\/?p=4158"},"author":{"name":"Press Room","@id":"https:\/\/infundpros.com\/#\/schema\/person\/87f7e632b195ea95c91503d9281f5eff"},"headline":"Opinion: \u2018Revenge travel\u2019 is over. Shoppers are spending on goods again and these 3 retailers could benefit.","datePublished":"2023-10-22T05:42:32+00:00","dateModified":"2023-10-22T05:42:33+00:00","mainEntityOfPage":{"@id":"https:\/\/infundpros.com\/?p=4158"},"wordCount":1110,"commentCount":0,"publisher":{"@id":"https:\/\/infundpros.com\/#organization"},"articleSection":["Investment"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/infundpros.com\/?p=4158#respond"]}]},{"@type":"WebPage","@id":"https:\/\/infundpros.com\/?p=4158","url":"https:\/\/infundpros.com\/?p=4158","name":"Opinion: \u2018Revenge travel\u2019 is over. Shoppers are spending on goods again and these 3 retailers could benefit. | inFundPros","isPartOf":{"@id":"https:\/\/infundpros.com\/#website"},"datePublished":"2023-10-22T05:42:32+00:00","dateModified":"2023-10-22T05:42:33+00:00","description":"With summer travel season winding down and holiday gift-giving season ahead, consumers are shifting their spending to goods from services. So, this is a","breadcrumb":{"@id":"https:\/\/infundpros.com\/?p=4158#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/infundpros.com\/?p=4158"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/infundpros.com\/?p=4158#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/infundpros.com\/"},{"@type":"ListItem","position":2,"name":"Opinion: \u2018Revenge travel\u2019 is over. Shoppers are spending on goods again and these 3 retailers could benefit."}]},{"@type":"WebSite","@id":"https:\/\/infundpros.com\/#website","url":"https:\/\/infundpros.com\/","name":"Fintech Advance","description":"Latest Finance and Tech News and Updates","publisher":{"@id":"https:\/\/infundpros.com\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/infundpros.com\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/infundpros.com\/#organization","name":"Fintech Advance","url":"https:\/\/infundpros.com\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/infundpros.com\/#\/schema\/logo\/image\/","url":"https:\/\/infundpros.com\/wp-content\/uploads\/2023\/10\/tech-logo.png","contentUrl":"https:\/\/infundpros.com\/wp-content\/uploads\/2023\/10\/tech-logo.png","width":409,"height":70,"caption":"Fintech Advance"},"image":{"@id":"https:\/\/infundpros.com\/#\/schema\/logo\/image\/"}},{"@type":"Person","@id":"https:\/\/infundpros.com\/#\/schema\/person\/87f7e632b195ea95c91503d9281f5eff","name":"Press Room","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/infundpros.com\/#\/schema\/person\/image\/","url":"https:\/\/infundpros.com\/wp-content\/uploads\/2023\/10\/avatar_user_1_1697230663-96x96.png","contentUrl":"https:\/\/infundpros.com\/wp-content\/uploads\/2023\/10\/avatar_user_1_1697230663-96x96.png","caption":"Press Room"},"sameAs":["https:\/\/infundpros.com"],"url":"https:\/\/infundpros.com\/?author=1"}]}},"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/infundpros.com\/index.php?rest_route=\/wp\/v2\/posts\/4158","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/infundpros.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/infundpros.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/infundpros.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/infundpros.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=4158"}],"version-history":[{"count":1,"href":"https:\/\/infundpros.com\/index.php?rest_route=\/wp\/v2\/posts\/4158\/revisions"}],"predecessor-version":[{"id":4160,"href":"https:\/\/infundpros.com\/index.php?rest_route=\/wp\/v2\/posts\/4158\/revisions\/4160"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/infundpros.com\/index.php?rest_route=\/wp\/v2\/media\/4159"}],"wp:attachment":[{"href":"https:\/\/infundpros.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=4158"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/infundpros.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=4158"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/infundpros.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=4158"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}