Interesting Action in Retail Apparel Plays (HBI, NAKD, LULU)

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Hanesbrands Inc. (NYSE: HBI) is a consumer goods company that designs, manufactures, sources, and sells a range of basic apparel for men, women, and children in the United States. The company operates through three segments: Innerwear, Activewear, and International. It sells bras, panties, men’s underwear, children’s underwear, activewear, socks, hosiery, intimate apparel, shapewears, and home goods; and T-shirts, fleece, sport shirts, performance T-shirts and shorts, sports bras, and thermals, as well as licensed logo apparel in collegiate bookstores, mass retailers, and other channels. The company licenses its Champion name for footwear and sports accessories.

Shares of the stock have been searching for a key bottom in recent action and may have found one over the last 10 days, as the stock broke down under the key $18.50 level, tagged $18 per share, and then ripped back higher to retake the key level. Traders and investors will be watching this one closely to see if it can successfully test the 50-day moving average near the $20 per share level.
Naked Brand Group Inc (NASDAQ:NAKD) promulgates itself as an apparel and lifestyle brand company that is currently focused on innerwear products for women and men. The company manufactures and sells men’s and women’s underwear, intimate apparel, loungewear and sleepwear through retail partners and direct to consumer through an online retail store.

Naked Brand Group Inc. designs, manufactures, and sells men’s and women’s underwear, intimate apparel, loungewear, and sleepwear products in the United States and Canada. It offers various innerwear products for men, including boxer briefs, trunks, briefs, undershirts, T-shirts, lounge pants, lounge shorts, and robes; and loungewear and sleepwear products for women, such as boyshorts, hipsters, lounge pants, camisoles, tank tops, pajamas, chemises, and sleepshirts primarily under the Naked brand name, as well as French terry robes, Alpaca throws, and Double Gauze woven cotton sleepwear.

The company sells its products to consumers and retailers through wholesale channels; and direct-to-consumer channel, which consists of an online e-commerce store, wearnaked.com, as well as through various online retailers and department stores.

The stock has been locked in a tight sideways range after recently breaking above its 50 day and 200 day simple moving averages. The chart has an overall bullish posture, and at just $1.45 per share, it could be a bargain in this space as new interest comes in searching for a resolution to the company’s historic merger with New Zealand iconic clothing brand Bendon Group.

Lululemon Athletica inc. (NASDAQ: LULU) is an athletic apparel company that, together with its subsidiaries, designs, distributes, and retails athletic apparel and accessories for women, men, and female youth. It operates through two segments, Company-Operated Stores and Direct to Consumer.

The company offers pants, shorts, tops, and jackets for healthy lifestyle and athletic activities, such as yoga and running; other sweaty pursuits; and athletic wear for female youth. It also provides fitness-related accessories, including bags, socks, underwear, yoga mats, and water bottles.

The company sells its products through a chain of company-operated stores; outlets and warehouse sales; a network of wholesale accounts, such as yoga studios, health clubs, and fitness centers; license and supply arrangements; and showrooms, as well as directly to consumer through lululemon.com and ivivva.com e-commerce sites.

Shares of the stock have been ripping higher in recent action, recently breaking out sharply above the $80 per share level, with momentum carrying over above the $90 per share level. Momentum in this trend is huge right now, and longtime investors are finally seeing a major payoff.

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