Summary of US Softlines Retail Industry Outlook Industry Overview - The report focuses on the **US Softlines Retail** industry, indicating a positive outlook for 2026 based on consumer sentiment and spending intentions [2][4]. Core Insights 1. **Consumer Sentiment Improvement**: Recent survey data shows US consumers are feeling more optimistic, leading to a more bullish stance on Softline stocks compared to the previous month [2][3]. 2. **Holiday Season Expectations**: A satisfactory finish to the 2025 Holiday season is anticipated, with few companies expected to miss consensus EPS expectations for Q4 [2][4]. 3. **Spending Intentions**: Consumer spending intentions for softgoods over the next 90 days are projected to increase by **2.9%** year-over-year, with a **535 basis points** acceleration month-over-month [4][14]. 4. **Fiscal Stimulus Impact**: The potential for US fiscal stimulus is expected to drive sales growth in the Softline industry, contributing to stock momentum into January 2026 [2][3]. Financial Metrics 1. **P/E Ratio Analysis**: Softline stocks currently have a P/E ratio **10% above** the past 10-year average, yet a **24% potential upside** is identified, suggesting further P/E expansion as spending growth rates improve [3][4]. 2. **Stock Recommendations**: Analysts favor stocks such as ONON, RL, GIL, LEVI, and others, while advising against NKE and Sell-rated M, KSS, and DDS [3]. Consumer Behavior Insights 1. **Spending Plans**: **27.0%** of consumers plan to spend more this Holiday season, compared to **23.2%** who plan to spend less, marking a **380 basis points** improvement from the past 11-year average [8]. 2. **Post-Christmas Shopping**: **70.1%** of shoppers intend to participate in post-Christmas sales, slightly down from the previous year but above the 10-year average [8][91]. 3. **Shopping Completion Rates**: **44.2%** of consumers had completed their Holiday shopping by the survey date, an increase of **160 basis points** year-over-year [8]. Economic Outlook 1. **Consumer Confidence**: Confidence among consumers has increased across all income demographics, with notable improvements in spending intentions among middle-income consumers [9][28]. 2. **Financial Security**: **42%** of respondents feel they are saving enough for future needs, up **120 basis points** month-over-month, indicating improved financial security [9][79]. 3. **Wealth Perception**: **22%** of consumers feel wealthier than the previous year, the highest percentage since 2019, with the average value of financial assets (excluding homes) at **$472K**, up **8%** year-over-year [9][66]. Additional Insights 1. **Concerns Over Economic Factors**: Consumers are less worried about macro issues like inflation and tariffs, which may contribute to their improved willingness to spend [5][9]. 2. **Demographic Spending Trends**: Upper- and middle-income consumers, who account for approximately **90%** of industry spending, are showing stronger spending intentions compared to lower-income households [9]. 3. **Political Influence on Spending**: The report notes differences in spending intentions based on political affiliation, with Democrats showing lower confidence and willingness to spend compared to Republicans [99][100]. This comprehensive analysis highlights the positive trajectory of the US Softlines Retail industry, driven by improved consumer sentiment, spending intentions, and potential fiscal stimulus effects.