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5 Spring Spending Splurges To Avoid

Stocks in this article: GPS ARO F GM KNOT

Seasonal apparel
Is it better to be broke and in fashion than a year behind and flush?

If consumers are wearing the current spring lines but have nothing in their pockets, they may want to re-evaluate how they're answering that question. Spring usually gives apparel sales a bit of a boost, with the National Retail Federation saying that 39.6% of Easter shoppers spent a portion of the $118.60 they parted with last holiday season on clothes. However, the bump doesn't tend to be that big, as consumers spend only an average of $19 on apparel and only 7% do so in specialty clothing stores such as The Gap (GPS), Aeropostale (ARO) or American Eagle (AEO).

"Because the prices are higher than during post-holiday sales, they kind of bring in revenue that way," says IBISWorld analyst Nikoleta Panteva. "It's kind of iffy this year because it's uncertain if consumers are willing to pay full price or if they are watching their budget."

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