BROADCASTS.com

In this episode, Tracey is joined by Maddy Johnson, Zacks Stock News Reporter, to discuss the trends in women’s retail. All is not doom and gloom in retail right now, despite the pessimism in the air. There are two trends dominating women’s retail that are hot for 2016: 1. The rise of women’s athletic wear; and 2. The popularity of lower-priced accessories, make-up, hair care, sunglasses, and jewelry. How can investors play these two strong trends? The leisure wear market is exploding with active wear sales for both men and women expected to be over a $40 billion market in 2016. But companies are only now realizing the potential, especially with women shoppers. Nike (NKE) says its women’s business is growing at twice the rate of its men’s business. In the last fiscal year, women’s grew at 20% compared to just 9% for men’s. It’s a $5.7 billion business for Nike, expected to nearly double to $11 billion in the next five years. Competitor Under Armour is also focusing on women as 30% of its sales are now from that group. But the specialty retailers are head of the game and have already been cashing in and you can too. According to Tracey and Maddy, lululemon (LULU) is still the industry-leader in yoga wear despite its management shake-ups and its yoga pant fiasco. Hot on its heels, though, is the Gap’s (GPS) Athleta brand. Athleta is slowly rolling out nationwide and now has 118 stores. But to invest in Athleta, you’ll have to buy the Gap’s other brands, all of which have been struggling including Banana Republic, Gap and Old Navy. Is this a risk worth taking? L Brands (LB) may sell a lot of lingerie through its Victoria’s Secret brand and a lot of hand lotion and soap in Bath & Body Work, but it’s the PINK line, specifically aimed at tween and teenage girls, that is the diamond in the rough. Maddy and Tracey explain what makes it so popular and why it makes L Brands a formidable competitor. But it is Ulta (ULTA), the beauty retailer, which is the leader of the pack. Same-store-sales in the third quarter soared 12.8% with retail up 10.9%, including 10.9% in their salon sales. E-commerce sales jumped 56.3% and now make up 190 basis points of the same-store-sales comp. Tracey and Maddy discuss just what it is that makes women shop, and then shop again, at Ulta instead of their local drugstore. Ulta has a secret weapon. And when WILL Ulta finally get some stores in Manhattan? They also gush about one chain declaring it “their favorite.” Listen to the podcast to find out which retailer they love and why you should make a bet on the stocks of the hottest women’s retailers. Nike: http://www.zacks.com/stock/quote/NKE?cid=cs-soundcloud-ft-pod Lululemon: http://www.zacks.com/stock/quote/LULU?cid=cs-soundcloud-ft-pod Gap Inc: http://www.zacks.com/stock/quote/GPS?cid=cs-soundcloud-ft-pod L Brands Inc: http://www.zacks.com/stock/quote/LB?cid=cs-soundcloud-ft-pod Ulta Salon: http://www.zacks.com/stock/quote/ULTA?cid=cs-soundcloud-ft-pod Follow us on StockTwits: stocktwits.com/ZacksResearch Follow us on Twitter: twitter.com/ZacksResearch Like us on Facebook: www.facebook.com/ZacksInvestmentResearch Find past episodes and show notes at www.zacks.com/podcasts