Economy on the mend? Check your closet
Posted
Apr 21 2009, 11:38 AM
by
Kim Peterson
Rating:
Does the economic recovery have any, ahem, legs? Perhaps jeans sales may hold the answer.
Sales of jeans rose 2.3% for the three months ending in February, MarketWatch reports, even as total apparel sales dropped 6.3%. And the brightest sales in the category belonged to premium jeans, which cost $100 or more.
That's making some analysts feel more optimistic about the economy. Underwear, shoe and denim sales have been leading indicators in the past five recessions, MarketWatch reports, because they're often the first purchases made by people sprucing up their wardrobes.
"Denim is always at the forefront of a recovery period," one analyst told the site. "It eventually turns into growth after a recovery."
The economic downturn has brought some jeans shoppers down to Earth. In the past, spending $300 on a pair of premium jeans was the norm. Now, experts say, that average price has dropped to around $125. Premium designers are responding by pushing out lower-priced jeans, and that in turn is cutting into brands like Levi Strauss.
The companies benefitting from the latest uptick in jeans sales, according to MarketWatch, include VF Corp. (VFC), Phillips-Van Heusen (PVH) and Polo Ralph Lauren (RL).
Image credit: Nes Jeans, public domain release
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