When Is It Time to Move Away from Retail and Become Professional?
Even though the apparel retail industry is expected to thrive in the coming months owing in-part to a recovery in brick-and-mortar store sales, with consumers returning to in-store shopping, not all stocks in this space are well positioned to gain. Shares of Stitch Fix (NASDAQ:SFIX) and Revolve Group (NYSE:RVLV) look significantly overvalued at their current price levels given their weak growth prospects. So, we think these stocks are best avoided now. Please read on for details.The halt in brick-and-mortar store sales last year caused by the COVID-19 pandemic, coupled with stiff competition from established e-commerce vendors, negatively affected the apparel retail sector significantly last year. But with the accelerating economic recovery, a gradual resumption of store operations, and increased consumer spending, the apparel retail industry is witnessing a solid recovery this year.