GO
Loading...

Underwear Sales Are Rising. You Know What That Means

Thursday, 21 Apr 2011 | 1:10 PM ET

Shares of Hanesbrands, Warnaco, Limited and Maidenform are thriving, and two analysts see higher underwear sales as a sign the economy is recovering.

The Underwear Indicator
Discussing whether consumers replenishing their essentials is an economic indicator, with Eric Beder, Brean Murray, Carret & Co.; Michael Yoshikami, YCMNET Advisors and CNBC's Steve Liesman.

Even during the 2008 downturn, "the underwear area was very strong," Eric Beder, retail analyst at Brean Murray Carret, told CNBC Thursday.

"People still wanted to spend money. So they could spend money on underwear if they were feeling good about themselves, even though for most people they wouldn’t show that off."

Michaell Yoshikami, YCMNET Advisors CEO, said many put off purchases for as long as possible and now want to replenish the underwear drawer.

"I think there is a cyclical recovery that you’re going to see and it does suggest that the economy is recovering (and) consumers are spending more money," he said.

  Price   Change %Change
HBI
---
LB
---
MFB
---
WRC
---

Still, consumers might not be willing to spring for really expensive underwear right now.

"You’re going to see a separation between the high-end makers and the more Costco-like makers. We’re a buyer of Costco for exactly this reason," he said, while shares of Hanes and the like "don't appeal at the current prices."

  Price   Change %Change
COST
---
M2P
---
LB
---

Featured

Contact U.S. News

  • CNBC NEWSLETTERS

    Get the best of CNBC in your inbox

    › Learn More

Don't Miss

U.S. Video