In a year that has seen retail stocks revving up their engines, anticipation is building over which companies will lead the pack in 2024. In the bustling landscape of retail investment, pinpointing the top contenders is akin to finding the brightest stars in an ever-expanding galaxy. On a recent segment of CNBC’s “Squawk On The Street,” Dana Telsey, CEO of Telsey Advisory Group, shone a light on several retail stocks she believes are poised for a stellar 2024. With a keen eye on innovation and value, let’s explore these potential market leaders and the driving forces behind their ascendancy.
The fashion powerhouse Ralph Lauren Corporation (RL) stands out on Telsey’s radar. With a projected low to mid-single digit sales growth, Telsey forecasts an optimistic target of $165 per share for Ralph Lauren in 2024, up from its trading price around $145 per share at the time of announcement. This growth trajectory is rooted in Ralph Lauren’s persistent pursuit of brand elevation and its strategic focus on global consumer experiences.
Bath and Body Works, Inc. (BBWI) is another brand with a fragrance of growth in the air. Telsey highlighted the brand’s robust loyalty program, boasting 41 million members eager to embrace new products and categories. This community of dedicated shoppers could be a significant propellant for the brand’s expansion in 2024.
Target Corporation (TGT) is also on the list for a bullish outlook, with Telsey spotlighting the retailer’s imminent brand collaborations and merchandise enhancements. After a year that pressured margins, Telsey believes 2024 will be a time for Target to bounce back and recover profitability through strategic partnerships and product innovation.
However, it’s not all smooth sailing in the retail sea. Telsey foresees a “messy year” for Estee Lauder Companies, Inc. (EL) in 2024, with continued earnings pressure exacerbated by market challenges in China. Nevertheless, the potential revitalization lies ahead in the second half of the year with new product innovations on the horizon, potentially positioning Estee Lauder for a late-year rebound.
In contrast, the luxury goods sector sparkles with opportunity. Telsey sees promise in companies such as LVMH, recommending investors to leverage the current weakness as a chance to tap into the conglomerate’s diversified strength across various luxury categories. Furthermore, Tapestry, Inc. (TPR), with its recent business combination with Michael Kors, is named as one to watch closely for growth prospects in the upcoming year.
As we take stock of these insights, it’s crucial to consider the broader context. The retail industry’s ability to innovate, adapt to shifting consumer behaviors, and navigate global economic changes will define success. Retailers that have shown resilience and agility in the face of adversity are setting themselves up as attractive investment opportunities.
We invite our readers to dive deeper into these retail picks. What strategies do you think will drive growth for these companies? Are there other under-the-radar retail stocks on your watchlist for 2024? Join the conversation and share your thoughts.
Moreover, staying abreast of the latest retail trends and market shifts is imperative. As news unfolds, we encourage readers to follow credible sources, engage with expert analyses, and participate in investor forums to remain well-informed.
To conclude, the retail landscape for 2024 appears to be a blend of established brands making a comeback and luxury players continuing to shine. With the right strategy and management, companies like Ralph Lauren, Bath and Body Works, and Target could outperform, while the luxury sector offers a haven for those seeking resilience in quality and brand power. So, keep these stocks on your radar and consider how they might fit into your investment plans as we edge closer to 2024.
FAQs
What is the sales growth projection for Ralph Lauren Corporation (RL) in 2024? The sales growth projection for Ralph Lauren Corporation in 2024 is in the low to mid-single digits, with an expected stock value target of $165 per share.
How does Bath and Body Works, Inc. (BBWI) plan to support its growth in 2024? Bath and Body Works plans to support its growth in 2024 through its strong loyalty program with 41 million members and by introducing new products and categories.
What challenges does Estee Lauder Companies, Inc. (EL) face in 2024? Estee Lauder is expected to face a “messy year” in 2024 with continued earnings pressure, especially due to struggles in the Chinese market.
Why does Telsey Advisory Group believe luxury goods sector stocks, like LVMH, offer investment opportunities? Telsey Advisory Group believes that the luxury goods sector, including stocks like LVMH, offer investment opportunities due to their diversified strength across various luxury categories and the current market weakness presenting a buying opportunity.
Which companies are anticipated to have potential growth driven by business combinations? Tapestry, Inc. (TPR) is anticipated to have potential growth in 2024 driven by its business combination with Michael Kors.
Our Recommendations: “Expert Picks: Retail Gems of 2024” As we peer into the crystal ball of retail, certain brands emerge as potential frontrunners for 2024. With innovation and consumer value at their core, Ralph Lauren and Bath and Body Works are setting the pace with strategic initiatives and strong brand loyalty. Meanwhile, Target’s focus on collaborations and merchandise enhancements heralds a recovery phase after a challenging 2023. The luxury sector remains a realm of untapped potential, with LVMH and Tapestry poised for growth amid current weaknesses. At Best Small Venture, we concur with Telsey Advisory Group’s outlook and suggest keeping a close eye on these stocks as they navigate the retail odyssey of 2024.
What’s your take on this? Let’s know about your thoughts in the comments below!
