The fashion industry faces significant economic and geopolitical challenges, such as declining consumer spending, mounting expenses, high borrowing costs, and supply chain disruptions aggravated by the Russia-Ukraine war. Against this backdrop, it could be wise to steer clear of fundamentally weak fashion stocks Hanesbrands Inc. (HBI), Allbirds, Inc. (BIRD), and Express, Inc. (EXPR). Let’s discuss why.
The past month witnessed a 0.4% decline in retail sales, indicating consumers’ emphasis on value and restrained discretionary spending. The expanding view of the consumer spending slowdown, the looming recession, and added concerns over bank collapses have contributed to a shift in consumer purchasing behavior.
