A handful of retail stocks stand to benefit more than others as the holiday shopping season gets underway in earnest on Black Friday, if history is any guide. This holiday shopping season might see strong consumer spending, according to Goldman Sachs. Nearly 60% of 1,000 consumers surveyed plan to spend the same or more on holiday shopping compared to last year, analyst Brooke Roach wrote in a report released Sunday. Lower income households plan to raise their spending, Roach added. Citigroup analyst Paul Lejuez also pointed to a encouraging consumer spending trends heading into Black Friday. “Overall, our survey paints a favorable picture for holiday spending,” Lejeuz wrote late last week. Against this backdrop, CNBC Pro screened for retail stocks that have historically posted the strongest December performance compared to peers over the past three, five, 10 and 15 years, confining the search to members of the SPDR S & P Retail ETF (XRT) . Here are some of the companies that outperformed in the final month of the year. Bath & Body Works made the list. Shares of the retailer have advanced more than 15% in 2024, lagging the S & P 500. But Bath & Body Works has notched a gain of more than 8% in each December over the past three years, according to FactSet data, making it one of the best performing retail stocks in what’s often a make-or-break month. BBWI YTD mountain Bath & Body Works stock. The Columbus, Ohio-based chain raised its full-year forecast for adjusted profit on Monday, while also reporting a smaller-than-expected drop in annual sales. Executives cited strong holiday shopping trends as a tailwind. Clothing retailer Abercrombie & Fitch also turned up. Shares have soared more than 64% in 2024. Shares have historically gained nearly 3% in each December over the past three and five years, the FactSet data showed. The company’s third-quarter earnings on Tuesday surpassed analyst estimates on the top and bottom line, while Abercrombie also raised its year-over-year sales guidance, signaling strong holiday shopping trends. ANF YTD mountain Abercrombie & Fitch stock. Other notable stocks on the list include Macy’s , which revealed its own issues Monday and delayed reporting results , and Groupon .
