Record $41.5 Billion Back-to-School Spending Is a Goldmine for This One Stock

Cutting the crust off a PB&J and making sure buses are caught means the majority of households are in back-to-school mode, with 85% of American students back in the classroom by Labor Day weekend.

But while these routines aren’t anything new for seasoned parents this time of year, there was something a little different in 2023 – bank accounts may look a little less full than in previous years.

Back-to-school spending is set to hit a new high of $41.5 billion. Per household, that shakes out to an average of $890.07 for school-aged children.

And for the university-goers, add in a new laptop, tablet, and dorm furnishings, and you’re looking at a hefty $1,366.95 average spend – taking this year’s expected total to $94 billion.

That’s nearly double the spending we saw in 2019…

Making 2023 the most robust back-to-school season we’ve ever seen.

As investors, we can tap into all that spending to make money of our own by targeting the companies capturing the most consumer dollars.

There are electronics and school supplies, of course…

But students also need to update their wardrobes with fresh threads. It’s the second-biggest budget item on parents’ list:

The trick is knowing which companies, brands, and trends are playing well with consumers on Main Street – before Wall Street catches on.

That’s something we’ve gotten good at.

As soon as someone takes to social media to share their schoolyard or campus fashion statement, our database captures their message in real-time and maps it back to the company and/or brand they’re buying from to help us ID those emerging opportunities.

We’ve spotted more than a few winners in the apparel realm this way:

• In July 2020, next-gen fashion retailer Revolve (RVLV) was all the rage as students headed back to class; with both demand and Consumer Happiness growing, our RVLV buy recommendation led MegaTrends subscribers to a 90% return in less than two years.
• In July 2021, we pegged Crocs (CROX) as an early back-to-school winner at $117; we saw Purchase Intent mentions maintaining high levels of demand… and by November, the stock had rocketed 54% to $180.
• And last year, sustainable shoemaker On Running (ONON) was the dominating fall fashion force – making our MegaTrends subscribers 66.34% gains and counting, as of this writing.

(By the way: You’re free to learn more about MegaTrends right here.)

As famed fashion columnist Diana Vreeland once said, “Fashion is the part of the daily air and it changes all the time, with all events.”

Don’t worry – we’re keeping up.

We can show you the coveted “back-to-school” look for 2023 – and how you can invest in it – right now…

“Barbiecore” and the Return of Ralph Lauren

This year, the coveted look on campus is “Barbiecore.” Aka, all things pink, preppy, and most importantly, Barbie doll-inspired.

Folks are looking to emulate the style statement so perfectly captured by Margot Robbie and Ryan Gosling as Barbie and Ken in this year’s summer blockbuster, “Barbie.”

The film raked in over $1 billion in just a month at the box office, making it one of the top 20 highest-grossing movies of all time.

But it’s not just about what Gosling and Robbie wore during the movie – it’s also about what they’ve been sporting before and after, which helped ignite the trend on social media.

For example, back in May, GQ featured a pink-clad Ryan Gosling in a photoshoot that set the internet ablaze.

It was a strategic move by “Barbie” filmmakers to garner interest in his upcoming role as Ken. And it worked.

LikeFolio has captured an astronomical 868% surge in Barbie buzz since its expertly executed marketing campaign kicked off earlier this summer:

No doubt, “Barbie” helped usher in a larger cultural shift towards preppy men’s and women’s clothing here in 2023.

And that shift is breathing new life into a global fashion icon that made its brand synonymous with preppy: Ralph Lauren (RL).

Luxury Makes a Comeback

Ralph Lauren is a luxury brand at its core. At one point during Gosling’s Ken-inspired photoshoot, he sports a $7,995 Ralph Lauren Purple Label jacket.

Despite the higher price point, we’re seeing Ralph Lauren become a favorite among trendsetting high school and college students.

In a post-earnings interview, RL CEO noted consumers are “gravitating towards higher-priced items.” The company has been seeing steady demand this year in line with the outperformance of high-end apparel tied to its affluent customer base.

And surprisingly, it’s the younger generations paying up for luxury goods: 60% of Gen Z and 63% of millennials making luxury purchases in the past year, outpacing Gen X and Baby Boomer shoppers.

This shift is driven by increased exposure to luxury brands through social media, with 78% of Gen Z and 70% of millennials following high-end brands online.

Ralph Lauren is expertly targeting this group through savvy celebrity appearances. Jennifer Lopez’s Met Gala appearance in May delivered over 8 billion global media impressions, and her look landed on multiple best-dressed lists across TV, digital, social, and print outlets.

And the influence of social media personalities is playing a significant role in purchasing decisions: Half of Gen Zers rely on influencers to identify luxury trends.

They see Beyoncé in Ralph Lauren – and that’s what brand they want to show up to campus in.

Retail spending was unexpectedly robust in July, and LikeFolio data shows Purchase Intent mentions for Ralph Lauren pacing 78% higher year-over-year.

Looking forward, Ralph Lauren should garner even more buzz this September, when it returns to New York Fashion Week after a four-year hiatus.

The news helped boost the RL stock price to an 18-month high earlier this summer.

And now that the stock has pulled back to around $115, we believe Ralph Lauren could be in for a surprise next quarter.

Ralph Lauren is one of five back-to-school winners featured in a special bonus report for LikeFolio Investor subscribers released earlier today.

With four more fresh opportunities ready and waiting, go here now to find out how you can join today and unlock the full report.

Until next time,

Andy Swan
Founder, LikeFolio