Fashion and Retail COVID-19 Stock Soar – WWD

Feel better? You’re not the only one.

There’s been a collective sigh of relief in C-suite fashion since the crash of the initial pandemic lockdown turned into an unlikely stock rally – fueled by government stimulus, e-commerce sales, and hope for the future.

While the COVID-19 pandemic is raging in many parts of the world, the US and Europe appear to be emerging from the worst with vaccination rates rising and many people returning to shopping again.

What a difference a year has made is evident in WWD’s survey of fashion and retail stocks since the midpoint of 2020.

L Brands Inc., parent of Victoria’s Secret until it plans to spin off this summer, won the stock rally, rising 382 percent to $72.06 over the past year.

Revolve Group Inc. and Abercrombie & Fitch Co. also quadrupled gains, while Capri Holdings and Tapestry Inc. saw their stock tripled.

The hike says a lot about how investors felt last summer—with malls closing, rents piling up again, inventory stale and no end in sight.

David Bassuk, global co-leader of retail practice at AlixPartners, said apparel had the deepest decline and fastest rebound.

But there’s more to it than just getting back up.

Bassuk said companies that are truly performing and rewarded by the stock market have moved in the pandemic and are shifting to a digital mindset, playing the power of omnichannel sales and sharpening their ability to respond to demand.

“The way to win in the financial markets is that you have to perform,” Bassuk said. “You really have to make sure that the market sees you leaning in and really takes a firm footing [on those three dimensions].”

Retailers have been talking for years about reaching these points and becoming more agile or more digital or taking a more holistic approach to stores — seeing its value as a return center and marketing tool. And while some embrace the approach and are seen as innovators, others are taking more measured steps toward what is widely seen as the future of retail.

COVID-19 turned that migration into a struggle.

“Many have been forced to use the pandemic as a coercive function to do what should have been done time and time again,” Bassuk said. “Now many have positioned themselves for the new world.”

But not everyone.

“There are still a lot of retailers trying to catch up and figure out what happened and how to organize and what to do going forward,” Bassuk said.

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