EWCZ - Baird starts shopping early for apparel/footwear picks in disruptive season

Baird has some attractive names for focus into the Q3 earnings season for active lifestyles companies in apparel, footwear and fitness - a sector which is absolutely feeling the wider market's supply pains. Those apply to most industries, but apparel/footwear has been particularly pressured, the firm says, considering timing of key holiday shopping periods along with concerns about product availability and inflation into 2022. Stocks in global apparel/footwear brands fell about 22% below 52-week highs through the first week of October, underperforming most other sectors before recovering some last week. And "While we acknowledge company-by-company risks are somewhat difficult to quantify, we think sentiment across the sector has been lowered enough (especially after bellwether Nike's (NYSE:NKE) mid-September disappointment) to support selective buying ahead of Q3 reporting," the firm's Jonathan Komp says. But as for a "Supply-mageddon," investors are fearing some significant cuts to companies' prior guidance, and "we think stocks

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Baird starts shopping early for apparel/footwear picks in disruptive season