The MAGIC Apparel Trade Show Just Shed Light On These Stocks

After attending this year’s MAGIC apparel trade show, Buckingham Research Group analyst David Glick released a new report that includes his key takeaways from the conference.

“Our meetings at the MAGIC apparel trade show in Las Vegas earlier this week reveal an industry undergoing tremendous and rapid change, as apparel brands contend with the channel shift from department stores to off-price and online retailers,” Glick explains.

Related Link: El-Erian: Chinese Concerns 'Legitimate,' Market Reaction 'Excessive'
 

Here’s a rundown of his five key takeaways:
1. Fall department store orders are very conservative, and mid-tier department stores are leading the growth.
2. Buckingham got positive impressions from meetings with G-III Apparel Group, Ltd. GIII and PVH Corp PVH, but an impression of uncertainty from Ralph Lauren Corp RL.
3. Apparel product costs could fall in the low-to-mid single digits in Fall 2016.
4. The biggest overall theme of this year’s conference was the role that Amazon.com, Inc. AMZN will play in the future of apparel retail.
5. The off-price sector is well-positioned to continue its out-performance in 2016.

Glick names the following six Buy-rated stocks as Buckingham’s top apparel stock picks:
G-III Apparel
PVH
Burlington Stores Inc BURL
Ross Stores, Inc. ROST
TJX Companies Inc TJX
J C Penney Company Inc JCP

Disclosure: the author holds no position in the stocks mentioned.