Black Friday, the biggest shopping day of the year in the U.S., set a record this year for online shopping.Typically, Black Friday, the day after Thanksgiving, is a huge day for in-store shopping, but this year marked a sizable shift in shopping patterns.Instead of shopping en masse in stores on Friday and buying online during “Cyber Monday,” the Monday after the Thanksgiving weekend, U.S. shoppers did more online shopping on Black Friday. That’s because retailers started their sales early, offering online discounts starting the Monday before Thanksgiving in what was dubbed Black Friday Week.As a result, shoppers spent a record $10.8 billion online from the comfort of their homes, according to Adobe Analytics. That was 10.2% more than 2023, and twice as much as was spent online on Black Friday in 2017.In-store traffic, on the other hand, was down about 8.2% on Black Friday, according to Sensormatic Solutions. For the full Black Friday week, in-store traffic fell 3.9% compared to last year.Obviously, it was a good week for retail stocks, especially those with a major online presence. Here are some of the retail stocks that performed the best.
Apparel and footwear stocks among Black Friday winners
The biggest winners during Black Friday week were not the big box stores, like Walmart or Target, or the ecommerce giants like Amazon (Nasdaq: AMZN). Rather, it was the specialty retailers that got the most traction.“Categories like Apparel, Footwear, and Jewelry saw notable traffic increases on the Saturday following Black Friday, indicating that consumers are spreading out their purchases,” Joe Shasteen, global head of advanced analytics at RetailNext, said. “Retailers who successfully connect their physical stores with digital platforms will be better positioned to capture value this holiday season and beyond.”To his point, apparel retailers like American Eagle (NYSE: AE) and Urban Outfitters (Nasdaq: URBN) saw their stocks spike on Friday. American Eagle stock rose 3.6% on Friday and jumped 9.4% last week. Urban Outfitters soared 2.6% on Friday and rose a ridiculous 26% for the week.Urban Outfitters has been the better performer, up 37% YTD while American Eagle is down around 9% YTD. The stock got an $8 price target upgrade on Friday from BMO Capital to $47 per share, which is slightly below its current price of $50 per share.American Eagle is considered to have more upside among analysts, with a median price target of $22.50. That would be 15% higher than the current price. Its P/E ratio has dropped from $28 in April to $15 now, with a forward P/E of 9. Analysts also anticipate steady earnings growth in 2025 and 2026.Footwear retailers, including Birkenstock (NYSE: BIRK), Deckers Outdoor (NYSE: DECK) and Steven Madden (Nasdaq: SHOO), also soared last week. Birkenstock stock rose 2.3% on Friday and 5.3% for the week, while Deckers stock jumped 2.2% on Friday and 3% for the week. Steve Madden rose 1.7% on Black Friday and 5.5% last week.Birkenstock, up just 5.8% YTD, has by far the most upside, with a median price target of $65 per share, which would be a 30% rise. But it has a high P/E ratio of 82, so keep an eye on that. But the forward P/E is a more reasonable 27.
Ulta Beauty, Bath and Body Works, and Best Buy shine
Two other retail stocks that performed well last week were Ulta Beauty (Nasdaq: ULTA) and Bath and Body Works (NYSE: BBWI). Ulta Beauty soared 3.1% on Black Friday and 13.5% for the week, while Bath and Body Works climbed 1% on Friday, but skyrocketed 22% last week.Both of these stocks have been beaten down this year, falling 21% and 13% YTD, respectively.Bath and Body Works is the cheaper of the two, with a P/E ratio of just 8, and it has more upside, according to analysts. It has a 12-month price target of $42 per share, which would be an 11% increase.Also of note, Best Buy (NYSE: BBY) had a strong Black Friday with its stock up 2%. The stock has gained about 15% YTD and has a median price target of $100 per share, suggesting an 11% increase over the next 12 months. It has a P/E ratio of 15.More By This Author:Cryptocurrency Is “Basketcase Asset” With “No Intrinsic Value”, Wealth Experts ArgueSpirit Airlines Files For Bankruptcy, To Delist From NYSE3 Top Crypto Stocks To Buy
