Clothing retail stocks have been hit-or-miss for investors over the past decade. This is in large part due to the massive shake-up we have seen in the retail sector. Today I want to look at two clothing stocks that are worth paying attention to in November.
Gildan Activewear (TSX:GIL)(NYSE:GIL) is a Canadian manufacturer of branded clothing. Shares have plunged 34% over the past three months as of mid-afternoon trading on October 31.
The stock took a plunge after a disappointing Q2 2019 report. Shares were largely static today after the company released its third quarter 2019 earnings in the morning. Sales fell 2% year-over-year to $740 million and adjusted diluted earnings per share decreased 7% quarter-over-quarter to $0.53. The company said that it is now evaluating the full phase-out of its direct ship-to-the piece imprintables business.
Gildan still offers a quarterly dividend of $0.134 per share, representing a 2.1% yield. The stock last had an RSI of 19, putting it well into technically oversold territory.
Aritzia (TSX:ATZ) is a Vancouver-based women’s fashion brand. Shares have climbed 14% so far this year. In its second quarter fiscal 2020 results, Aritzia saw net revenue rise 17.4% year-over-year to $241.2 million and the company posted comparable sales growth of 8.4%.
Adjusted EBITDA climbed 10.1% to $36.4 million and adjusted profit increased 8% to $19.8 million.
Shares went into technically overbought territory after its earnings release but have since retreated below an RSI of 70. Still, the stock possesses a high price-to-earnings ratio of 24 and a price-to-book value of 7.6.
