This Was Retail’s Best Holiday Season In 6 Years

Investors may be spooked, but shoppers sure aren’t.

Between November 1 and Christmas Eve, retail sales in the U.S. were up 5.1% to more than $850 billion, according to Mastercard SpendingPulse, which monitors spending in stores and online with all forms of payment. Online sales during this time were also up just over 19% from a year ago.

This comes amid turmoil in the stock market over concern about a slowing economy, the trade war, rising interest rates, and the partial government shutdown. Despite all this, consumer confidence has clearly remained strong which has translated into the strongest retail sales in six years.

Steve Sadove, former CEO of Saks and current advisor to Mastercard said that over the past few weeks, “many retailers were able to give consumers what they wanted,” resulting in stronger sales.

According to Mastercard, the strongest retail sectors included apparel, where sales were up nearly 8% during the holiday season—the best growth since 2010,—and home improvement, where spending was up 9%.

Analysts said that apparel companies had done a better job this year in managing inventory and keeping products fresh, though there will be still “losers” in the space.

“Not all apparel is doing great,” said Craig Johnson, president of retail advisory firm Customer Growth Partners.

Growth was the strongest among activewear retailers like Nike (NYSE: NKE) and discount companies like T.J. Maxx (NYSE: TJX), Johnson said. Winners like Lululemon (NASDAQ: LULU), Abercrombie (NYSE: ANF), and Old Navy (NYSE: GNP) started the season on a high note with strong sales over Black Friday weekend.

A few of these stocks climbed on Wednesday after the preliminary data was released by Mastercard. Lululemon is up nearly 7% since Wednesday and Abercrombie shares are up 11%.

Amazon (NASDAQ: AMZN) shares were up as much as 7.7% Wednesday after the online retail giant reported that it had another record holiday season, buoyed by demand for its devices, including the Echo Dot, and the Fire TV Stick 4K.

Department stores continued to struggled, and sales were down 1.3% from November 1 through Christmas Eve, Mastercard said, though department store e-commerce sales were up 10.2%.

“Department stores in aggregate have been losing market share and not performing like other sectors,” Sadove said.

In the coming weeks, stores will begin to report holiday sales figures and analysts will be watching to identify those companies that saw the most benefit from a stronger holiday season.

Trending Ideas

Featured Stocks On The Move

Daily Rundown

Top 3 Stocks in Leading Sectors
  • 3 Electric Power Stocks To Buy Now

    Featured Content Hawaiian Electric Industries, Inc. (HE) Hawaiian Electric Industries, Inc. is a holding company that provides electric utility services and financial services in Hawaii. Through its subsidiaries, it supplies... Read More

  • 3 Bank Stocks To Buy Now

    Featured Content Comerica Incorporated (CMA) Comerica Incorporated is a financial services company headquartered in Dallas, Texas, offering a range of banking products and services, including commercial and retail banking, wealth... Read More

  • 3 Machinery Stocks To Buy Now

    Featured Content Alta Equipment Group Inc. (ALTG) Alta Equipment Group Inc. is an integrated equipment dealership platform in the United States, operating through three segments: Material Handling, Construction Equipment, and... Read More

  • 3 Silver Stocks To Buy Now

    Featured Content Gatos Silver, Inc. (GATO) Gatos Silver, Inc. is a precious metals mining company primarily focused on silver and zinc production. Its flagship Cerro Los Gatos mine in Mexico... Read More

  • 3 Metal Production Stocks To Buy Now

    Featured Content Century Aluminum Company (CENX) Century Aluminum Company is a primary aluminum producer, with operations that include the production of high-purity, low-carbon aluminum used in automotive, aerospace, and industrial... Read More

  • 3 Medical Drug Stocks To Buy Now

    Featured Content Teva Pharmaceutical Industries Limited (TEVA) Teva Pharmaceutical Industries Limited is a global pharmaceutical company specializing in generic and specialty medicines. The company provides a wide range of treatments... Read More

  • 3 Paper Product Stocks To Buy Now

    Featured Content AptarGroup Inc. (ATR) AptarGroup Inc. is a global leader in providing innovative dispensing and packaging solutions, serving diverse industries like beauty, personal care, and pharmaceuticals. They focus on... Read More

  • 3 Restaurant Stocks To Buy Now

    Featured Content Brinker International, Inc. (EAT) Brinker International, Inc. operates well-known restaurant brands such as Chili’s Grill & Bar and Maggiano’s Little Italy. The company is a leader in the... Read More

  • 3 Investment Brokerage Stocks To Buy Now

    Featured Content Robinhood Markets, Inc. (HOOD) Robinhood Markets, Inc. is a financial services company known for its commission-free trading platform, which allows users to trade stocks, options, cryptocurrencies, and ETFs.... Read More

  • 3 Shipping Stocks To Buy Now

    Featured Content ZIM Integrated Shipping Services Ltd. (ZIM) ZIM Integrated Shipping Services Ltd. is a global container shipping company that provides cargo transportation services worldwide. The company operates a modern... Read More

  • 3 Mining Stocks To Buy Now

    Featured Content Perpetua Resources Corp. (PPTA) Perpetua Resources Corp. is a mining company focused on the exploration and redevelopment of the Stibnite Gold Project in Idaho, which is one of... Read More

  • 3 Airline Stocks To Buy Now

    Featured Content General Electric Company (GE) General Electric Company is a global industrial conglomerate with operations spanning sectors such as aviation, healthcare, power, and renewable energy. GE is known for... Read More