Despite falling consumer confidence, a new report from Deutsche Bank analyst Mike Baker shows that retailers are springing back with increased sales in Q3 over Q2, specifically, Dick’s Sporting Goods (DKS):
DB: Sales indicators show improvements Industry sales trends were better in 3Q than in 2Q and supplier commentary followed the same pattern. For instance, industry sales are tracking up 0.3% in 3Q compared to down 3.1% last quarter. Similarly, Under armour’s sales grew 16% versus 5% last quarter, and North Face was up 10% versus 4%.
While the report focuses on Dick’s, increased sales with three major apparel manufacturers in one quarter is a sign that consumers may be ready to start spending some disposable income again. Under Armour specifically has tripled its sales at Dick’s in one quarter and with Black Friday and the holiday season fast approaching, I expect that Q4 will show a boost in sales as well.