Nike, Lululemon and TJX Cos. Seen as Top Investments for 2020

Jane Hali & Associates LLC noted in its annual report that "wellness and comfort" remain key trends driving consumer decisions.

Published January 6,2020

In the firm’s annual outlook, Jane Hali & Associates LLC highlighted top stock picks for 2020 as well as some of the underpinning consumer trends that are expected to drive spending this year.

Among JHA’s long-term picks are Target Corp., TJX Cos. Inc., Nike and Lululemon. Overall, Jane Hali, principal of her namesake firm, said the target audience “for retail will continue to be generations Y (Millennials) and Z. They are buying the most in apparel and footwear.”

Hali also said the athletic segment will remain key this year. “The ath-leisure apparel and non-performance sneakers are used for full lifestyle dressing,” Hali said in her report. “The umbrella trend here involves wellness and comfort.”

Within this segment, JHA noted that Lululemon has “evolved its assortment to gain more consumers, without alienating its core customer or product.” Hali noted that Lululemon has its sights set on growing its footprint in Europe and Asia, which she sees “as a positive.” And with Lululemon’s expansion into “beauty, intimates and accessories, the brand is becoming a true lifestyle brand. With a focus on men’s as well, that business is growing at a faster rate than women’s.”

 

In regard to Nike, Hali said the athletic brand giant continues to “gain momentum in the sportswear market across sneakers and apparel” while also driving growth in “DTC channels, international and the women’s market.” JHA noted in the report that Nike offers “an excellent experience in-store and online” and it also does “a great job at localization globally and creating newness across all channels.”

With TJX Cos., Hali said, the off-price space is “the new department store” channel, and is where “the former department store [Baby] Boomer shops.” But it is also attracting Millennials and Generation Z, she said, reiterating TJX Cos. as the top, long-term stock pick for the sector.

Hali’s report also explored the relationship of the environment and sustainability within the consumer mind-set.

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