Target As the plates try to convince more shoppers to buy clothing and other discretionary merchandise-Champion, there will soon be another brand to hang.
On Wednesday, the cheap fashion retailer announced a multi-year deal with long-time sportswear brand associated with hoodies and sweatpants. Authentic Brand Group Buy the champion from there Hanesbrands last year.
Starting in August, Target will carry more than 500 items in most stores and online stores, including adult and children’s clothing, sports goods, accessories and bags. It will also be available for the champions’ limited-time collection in September. The company said most items will be priced under $40.
Target’s deal with Champion is due to the Minneapolis-based retailer trying to improve its stock performance and sales, especially in more profitable categories such as clothing and household goods. middle. company Improved sales forecasts For Drew Holiday shoppers in November and December, there was no profit outlook in the fourth quarter of fiscal year 4.
The large retailer said in January that it expects sales in the holiday quarter to be comparable Growth about 1.5%. The metric includes sales on the Target website, with stores open for at least 13 months.
For Target, clothing trends grew year-on-year in the second quarter. Sales in the category fell by about 4 percentage points in the third quarter, but company leaders accused challenging the weather and announced their strength in their women’s clothing business.
The motivation for clothing sales helps Company Hiking Chief Business Officer Rick Gomez said his holiday quarter sales forecast was in January.
Target will report its full holiday quarter results on Tuesday.
As retailers’ shares have fallen by about 16% over the past year, compared with retailers about 17% over the same period, the result will be 16%.
In an interview with CNBC, shoppers are still selective after years of confusion over inflation. But he said the goal attracted the attention of customers and the dollar for fresh items.
He said, for example, customers responded in November, when Target started selling all the gaiters in motion, with the bundles lit with bright colors and shiny patterns for $25. He said shoppers also responded to the redesign of the bra for Auden, its intimacy and pajama range.
“When we have the novelty of style, trends at reasonable prices, consumers are willing to shop.”
Target has long used brand collaboration as a competitive differentiator. It’s with Li Wei, Ulta Beauty And Kendra Scott Limited time collection with other brands such as Diane von Furstenberg.
This is not the first time Target has carried a championship. The big retailer sold the C9 for about 15 years, but replaced it With all the movement, Target’s own training clothing brand, in 2020.
Gomez said the new champion collection will have a more stylish feel, premium fabrics and unique details, such as Target’s iconic red champion logo. It is made up of sportswear designed to rest or live, rather than performance outfits for gyms, he said.
Items will cover a wide range of items including baseball caps, sweatshirts, short slip bags and duffel bags. The limited-time collection will include items such as patches for sale with a varsity-themed cardigan that customers can add to customize the look.
According to the company’s fiscal year 2023 filing, Target drew about 15% of annual sales from clothing and accessories, which is the latest.
The apparel category has been in a bumpy state over the past two years, said Kristen Classi-Zummo, an industry analyst at market research firm Circana. Consumers withdraw their purchases as they refreshed their closets at the end of the Covid pandemic. Then, she said, fees were hit in 2023 as families were looking for ways to reduce their budgets, as prices for necessities such as groceries and housing rose.
According to Circana data, clothing sales totaled US$240.6 million in 2024, down 2% year-on-year. This is a 6% increase compared to pre-pandemic in 2019. However, this is a stark contrast to 2021, when sales increased by 32% year-on-year.
Classi-Zummo said American consumers tend to find ways to save basic knowledge, such as new pajamas and underwear, and waving stylish statement pieces. She said, for example, men’s lingerie backpacks are under $20 According to Circana’s analysis, women’s denims over $150 are driving sales growth.
“They are very strategic about what they spend,” she said. “It’s really about the value they find, and some people may find the value of investing in what people notice.”
