Ethereum, the blockchain technology platform best known for its native cryptocurrency Ether or ETH, topped out at $4,761 in November 2021. The second-largest cryptocurrency dipped down 7% and dropped below $3,000 for a short time on Monday. After recovering some losses, it was still 2.02% lower at the close.
On the other hand, the retail industry experienced booming holiday spending. According to Mastercard Incorporated (MA) SpendingPulse, holiday spending rose 8.5% year-over-year, posting its biggest annual increase in 17 years. Moreover, the global apparel market is expected to grow at a CAGR of 5.5% between the forecast period of 2020 to 2025.
Apparel retail stocks of Destination XL Group, Inc. (DXLG) and J.Jill, Inc. (JILL) might be solid bets, given their sound fundamentals. Additionally, these stocks have outpaced Ethereum USD (ETH-USD) gains of 386.7% over 2021.
Destination XL Group, Inc. (DXLG)
DXLG is a specialty retailer of big and tall men’s clothing and shoes in the United States and Canada. The company’s offerings include sportswear and dress wear, accessories, fashion-neutral items like jeans and t-shirts, blazers, and dress shirts.
On January 6, DXLG announced the expansion of its portfolio of exclusive brands for the spring season with the joining of global designer Nautica sportswear and lifestyle brand vineyard in its brand list. This should benefit DXLG by leveraging the brand names that resonate with global customers. The company also declared January as the official Big + Tall month.
For the fiscal third quarter ended October 30, DXLG’s sales increased 42.6% year-over-year to $121.49 million. Gross profit rose 96.2% from the prior-year quarter to $60.96 million. Net income and net income per share came in at $13.66 million and $0.20, respectively, up substantially from their negative year-ago values.
The consensus EPS estimate of $0.14 for the quarter ending April 2022 indicates a 180% year-over-year increase. Likewise, the consensus revenue estimate for the same quarter of $117.70 million reflects a rise of 5.6% from the same period prior year.
The stock has gained 2,003.7% over 2021 to close yesterday’s trading session at $5.43. It has gained 39.9% over the past six months.
DXLG’s strong fundamentals are reflected in its POWR Ratings. The stock has an overall A rating, which equates to Strong Buy in our proprietary rating system. The POWR Ratings are calculated by considering 118 different factors, with each factor weighted to an optimal degree.
DXLG has a Growth, Sentiment, and Quality grade of A and a Value and Momentum grade of B. In the 46-stock Specialty Retailers industry, it is ranked #1. The industry is rated B. To see the additional POWR Rating for Stability, click here.
J.Jill, Inc. (JILL)
JILL is an omnichannel retail operator for women’s apparel in the United States. The company, operating under the J.Jill brand name, offers knit and woven tops, bottoms, and dresses, as well as sweaters, footwear, and accessories.
JILL’s net sales increased 29.4% year-over-year to $151.73 million in the fiscal third quarter ended October 30. Gross profit improved 51.5% from the same period prior year to $104.54 million. Adjusted net income and adjusted net income per common share stood at $9.22 million and $0.65, registering a substantial increase from their negative year-ago values.
Analysts expect JILL’s EPS to increase 108% from the prior-year quarter to $0.02 for the quarter ending January 2022. Likewise, Street revenue estimate of $155.70 million for the same period reflects a 29.3% year-over-year improvement. Moreover, JILL has an impressive surprise earnings history as it has topped consensus EPS estimates in three out of the trailing four quarters.
The stock has gained 414.2% over 2021 and 17% over the past month to close yesterday’s trading session at $18.00.
It’s no surprise that JILL has an overall A rating, which translates to Strong Buy in our POWR Rating system. JILL has an A grade for Sentiment and a B grade for Growth, Value, Momentum, and Quality. It is ranked #1 out of the 63 stocks in the Fashion & Luxury industry. The industry is rated A. Click here to see the additional POWR Rating for JILL (Stability).
DXLG shares were trading at $5.86 per share on Tuesday afternoon, up $0.42 (+7.72%). Year-to-date, DXLG has gained 3.17%, versus a -1.23% rise in the benchmark S&P 500 index during the same period.
About the Author: Anushka Dutta
Anushka is an analyst whose interest in understanding the impact of broader economic changes on financial markets motivated her to pursue a career in investment research.
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