© Reuters. Moody's positive on apparel/footwear industry
- Moody's shifts to a Positive outlook on U.S. apparel and footwear manufacturers from Stable after watching the industry ride out a tough two-year stretch,
- "The positive outlook for the US apparel and footwear industry reflects faster-than-anticipated revenue and profit growth," updates Moody's Apparel Analyst Michael Zuccaro. "We expect nearly all our rated companies to show some form of profit growth next year as they realize benefits from cost-saving initiatives, acquisition synergies, new product introductions and targeted marketing, as well as improved macroeconomic conditions," he adds.
- Nike ( +1.6%), PVH Corp. ( +3.2%) and VF Corp. ( +1.7%) are singled out by Moody's as companies showing improved growth trends, while upside is seen across the apparel/footwear sectors from DTC initiatives and emerging markets (including China).
- Earlier this week, Under Armour (, ) showed trends that were encouraging enough to send shares up 20%.
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