- CNBC’s Jim Cramer on Friday offered investors a list of clothing stocks that he believes will see upside as workers continue returning to the office.
- “After the huge run in the apparel stocks, I recommend ringing the register on the lower quality ones, so that you can swap into something better,” he said.
CNBC's Jim Cramer on Friday offered investors a list of clothing stocks that he believes will see upside as workers continue returning to the office.
"After the huge run in the apparel stocks, I recommend ringing the register on the lower quality ones, so that you can swap into something better," he said.
Shares of PVH, the parent of Calvin Klein and Tommy Hilfiger, surged on Thursday after the company reported better-than-expected results for its latest quarter and strong quarterly guidance.
Other apparel companies including Abercrombie & Fitch and American Eagle also delivered upside surprises this week, sending their stock higher.
Here are Cramer's favorite apparel stock picks:
Cramer said he likes PVH because it's holding steady in a tough economic environment, and expects the company's performance to get stronger when macroeconomic headwinds including the strong U.S. dollar, the Federal Reserve's aggressive interest rate increases and China's Covid restrictions eventually wind down.
"Given that the stock's currently selling for less than nine times earnings, you've got my blessing to own it if you believe something can go right here," he said.
Cramer praised Ralph Lauren's pricing power and its handle on expenses. He added that he expects tailwinds from the continued reopening of the economy and return to the office.
"People need nicer clothes if they're not going to be stuck at home all the time," he said.
Lululemon has a stamp of approval from Cramer, who has praised its management and loyal customer base.
He said that he expects investors to be "downright ecstatic" when Lululemon reports its quarterly results next week.
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