Retail stocks rallied Monday on the back of a busy Black Friday shopping holiday. Burlington Stores broke out above a buy point, while Williams-Sonoma surged into a buy range. Lululemon and Five Below also jumped ahead of their earnings reports this week.
Mastercard's SpendingPulse reported that Black Friday retail sales rose 3.4% compared with last year, not adjusted for inflation. Online retail sales increased 14.6% vs. last year, while in-store sales ticked up 0.7%, according to Mastercard. Data indicates that jewelry, electronics and apparel remain the top gift sectors for the holidays. Mastercard noted there was particular strength in e-commerce apparel shopping during Black Friday.
"Black Friday was a good indicator of how the holiday season is positively shaping up," Michelle Meyer, chief economist at the Mastercard Economics Institute, said in the release. "Consumers are comfortably in the gift-giving spirit as price reductions and deals occur across sectors, supporting budgets for holiday shopping."
Steve Sadove, senior advisor for Mastercard, added that "shoppers are making the most of seasonal deals and enjoying a balance of experiences spending and gifts for all loved ones. They're more strategic in their shopping though, prioritizing promotions that they believe hold the greatest value — opening their wallets, but with more intentional distribution."
Retail Stocks Rally
BURL stock rose 3% Monday to trade near the top of a buy range, above a 279.51 buy point for a cup-with-handle base.
Burlington shares have jumped more than 49% so far this year and are trading at three-year highs.
Williams-Sonoma shares swung 3.1% higher Monday to climb into a buy zone, above a 174.25 buy point.
WSM stock is up almost 77% in 2024 and is trading near record highs.
Dick's Sporting Goods popped 3.9% Monday with a strong bounce off its 200-day moving average. DKS stock is consolidating with a 239.30 buy point and is up about 47% so far this year.
Hoka shoemaker Deckers climbed 3%, extending further from its recent cup-with-handle breakout on Nov. 22. DECK stock has sprinted 82% higher so far this year.
Legacy department-store giant Macy's surged 4.3% Monday, paring some of its 16% decline in 2024.
Five Below popped 7% Monday with its Q3 earnings due late Wednesday. Analyst see earnings falling to 17 cents per share from 26 cents last year. Revenue for the extreme-value chain is expected to increase about 9% to $801 million.
Lululemon jumped about 4.3% Monday with a strong move off its 200-day line. The athleisure retailer reports its Q3 results late Thursday.
FactSet expects Lululemon earnings to increase 7.1% to $2.71 per share on 6.9% revenue growth to $2.36 billion.
You can follow Harrison Miller for more stock news and updates on X/Twitter @IBD_Harrison
