RBC Capital Markets has predicted slow growth rate for US retailers this years. According to the report, Ascena Retail Group which owns Lane Bryant, Ann Taylor, Dress Barn, and Catherines likely to face 49 per cent decrease in its growth rate.
An 11 per cent decrease in revenue growth for next year has also been predicted for Under Armour, the American sports clothing and accessories company. This is expected in view of consumer’s decreasing interest in athleisure. According to RBC analysts, yoga-inspired apparel athletic company Lululemon Athletica’s growth rate can also drop by 5 per cent. A 6 per cent decline in sales growth for this fiscal year for Coach is also expected.
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The increasing popularity of online shopping has also hit the retailers hard as consumers are opting to shop on e-commerce sites over more brick-and-mortar stores, resulting in reduced traffic in stores. Fitch Ratings has also stated that the augmented number of discounted retailers has given a blow to more traditional and single-brand brick-and-mortar retailers.
