2 Apparel Retail Stocks Rated 'Strong Buy' to Grab Now

NASDAQ: SCVL | Shoe Carnival, Inc. News, Ratings, and Charts

SCVL – As the apparel retail industry is expected to continue growing with increased consumer spending and reopening of stores, it could be wise to bet on quality apparel retail stocks Shoe Carnival (SCVL) and Tilly’s (TLYS). In our proprietary rating system, these stocks are rated ‘Strong Buy.’’.

The retail industry recovered last year with the reopening of physical stores amid increased vaccinations. Also, a surge in consumer spending led to digital retail platforms witnessing record sales. According to an NBC news report, until December 16, 2021, retailers announced 5,083 store openings compared to 5,079 store closures.

The apparel retail industry is also witnessing increasing demand as people go out of their homes with the easing of pandemic-related restrictions. According to a Market Research report, the global clothing and clothing accessories stores market is expected to reach $1,549.69 billion in 2025, growing at a CAGR of more than 6%.

Given this backdrop, fundamentally sound apparel retail stocks Shoe Carnival, Inc. (SCVL) and Tilly’s, Inc. (TLYS) could be solid additions to your portfolio now. These stocks have an overall A (Strong Buy) rating in our proprietary POWR Ratings system.

Shoe Carnival, Inc. (SCVL)

SCVL, together with its subsidiaries, operates as a family footwear retailer in the United States. Currently, the company operates 383 stores in 35 U.S. states and Puerto Rico. It also sells its products through online shopping at shoecarnival.com.

On December 3, 2021, SCVL announced the substantial acquisition of all of the assets of privately-held, family-owned Shoe Station, Inc. Mark Worden, SCVL’s President and CEO, said, “We are excited to welcome Shoe Station to the Shoe Carnival team. Coming on the heels of our best quarter of our best year in our 43-year history, this deal accelerates our journey toward becoming a multi-billion-dollar retailer in the years ahead.”

SCVL’s net sales came in at $356.34 million for the fiscal quarter ended October 30, 2021, up 29.8% year-over-year. The company’s net income came in at $46.84 million, up 219.1% year-over-year. Moreover, its EPS came in at $1.64, representing a 221.6% year-over-year rise.

SCVL’s revenue is expected to come in at $1.29 billion in fiscal 2022, representing an increase of 32% year-over-year. Its EPS is expected to increase 819.6% year-over-year to $5.15 in fiscal 2022. Also, it surpassed the consensus EPS estimates in each of the trailing four quarters. Over the past year, SCVL has gained 115.5% to close yesterday’s session at $39.89.

SCVL has an overall A grade equating to a Strong Buy in our POWR Ratings system. It has an A grade for Momentum and Quality and a B grade for Growth and Value. Again, it is ranked #2 of 63 stocks in the A-Rated Fashion & Luxury industry. Click here to see the additional ratings for SCVL (Stability and Sentiment).

Tilly’s, Inc. (TLYS)

TLYS operates as a specialty retailer of casual apparel, footwear, accessories, and hard goods for young men, women, boys, and girls in the United States. The company operates through 238 stores across 33 states and online through tillys.com.

On December 2, 2021, Ed Thomas, the company’s President and CEO, said, “The fourth quarter is off to a strong start and, despite all of the challenges in the current environment, we remain optimistic about our business prospects for the remainder of fiscal 2021 and into fiscal 2022 at this time.”

For the fiscal third quarter ended October 30, 2021, TLYS’ net sales came in at $206.10 million, representing a 46.9% year-over-year rise. Its net income came in at $20.83 million, up 886% year-over-year. Moreover, its EPS increased 842.9% year-over-year to $0.66.

Analysts expect TLYS’ revenue to increase 47.5% year-over-year to $783.68 million in fiscal 2022. Its EPS is expected to increase 5,450% year-over-year in fiscal 2022 to $2.14. It surpassed the EPS estimates in each of the trailing four quarters. Over the past year, the stock has gained 99.3% to close yesterday’s trading session at $16.44.

It’s no surprise that TLYS has an overall A rating, which equates to a Strong Buy in our proprietary rating system. In addition, it has an A grade for Momentum and Sentiment and a B grade for Growth and Value.

TLYS is ranked #7 in the Fashion & Luxury industry. We have also rated the stock for Stability and Quality. Click here to get all the TLYS ratings.


SCVL shares were trading at $38.01 per share on Wednesday afternoon, down $1.88 (-4.71%). Year-to-date, SCVL has declined -2.74%, versus a -1.39% rise in the benchmark S&P 500 index during the same period.


About the Author: Nimesh Jaiswal


Nimesh Jaiswal's fervent interest in analyzing and interpreting financial data led him to a career as a financial analyst and journalist. The importance of financial statements in driving a stock’s price is the key approach that he follows while advising investors in his articles. More...


More Resources for the Stocks in this Article

TickerPOWR RatingIndustry RankRank in Industry
SCVLGet RatingGet RatingGet Rating
TLYSGet RatingGet RatingGet Rating

Most Popular Stories on StockNews.com


:  |  News, Ratings, and Charts

How to Beat the Market the Rest of the Year?

The easy gains that came at the start of this new bull market are fading away fast. In fact the stock market (SPY) has become quite volatile with 2022 starting off with a nasty correction. Gladly there are easy solutions as will be shared in this commentary to get you on the right path to outperform the market the rest of the year. Read the rest below...

:  |  News, Ratings, and Charts

3 Stocks that Are Thriving in an Inflationary Environment

Inflation is one of the biggest threats facing the economy. One profitable strategy during this period of high inflation is to focus on stocks that have pricing power, as these companies’ margins will continue to expand. In contrast, stocks without pricing power are likely to underperform as margin compression erodes EPS. Therefore, investors should consider buying these 3 stocks that are thriving in this inflationary environment: Olin (OLN), Nucor (NUE), and Chemours (CC).

:  |  News, Ratings, and Charts

Stock Market “Nausea Index” Going Off

The stock market (SPY) has seen fresh lows this week scaring many investors into selling their positions. On the other hand, 40 year investment veteran shares a proprietary market indicator that points to a significant bounce coming soon. Is he right? You be the judge by reading below.

:  |  News, Ratings, and Charts

4 Best Value Stocks to Buy in January

In times of high inflation, value stocks tend to outperform growth stocks and have done so over the past year. Amid the rising inflationary pressure and looming interest rate hikes, fundamentally sound value stocks ArcelorMittal (MT), Covestro (COVTY), KT Corporation (KT), and Nature’s Sunshine (NATR) could be solid bets.

:  |  News, Ratings, and Charts

Stock Market “Nausea Index” Going Off

The stock market (SPY) has seen fresh lows this week scaring many investors into selling their positions. On the other hand, 40 year investment veteran shares a proprietary market indicator that points to a significant bounce coming soon. Is he right? You be the judge by reading below.

Read More Stories

More Shoe Carnival, Inc. (SCVL) News View All

Event/Date Symbol News Detail Start Price End Price Change POWR Rating
Loading, please wait...
View All SCVL News