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The apparel retailer’s stellar price performance can be attributed to its solid second-quarter earnings, which beat consensus estimates. In addition, the company witnessed sustained strength in e-commerce during the quarter and raised its full-year outlook for revenue and profits.
The stock is currently trading 3.2% below its $434.22 all-time high, which it hit on September 9. Although the company’s continued momentum across all its business segments and improved product offerings boosted its revenue in its last reported quarter, the stock’s significantly higher valuation than many of its peers in the retail sector is a concern. Furthermore, supply chain headwinds and pandemic-related challenges could lead to bearish investor sentiment.
