Morgan Stanley retail analyst Kimberly Greenberger appeared on Wednesday's "Power Lunch" on CNBC to discuss the power and influence of Amazon regarding apparel.
Greenberger was a part of a team that published a report conducting an analysis of the apparel market which is one of Amazon's large push areas.
"What we discovered was that the department store share of the apparel market over the last 10 years has fallen by about $30 billion. Amazon and the other internet retailers share of the U.S. apparel market have grown by about $28 billion. The share shift looks to be coming straight out of department store pockets to internet retailers and the number one leader there is Amazon," she explained.
The fact remains that only 8% of all shopping is done online. However, Greenberger noted that the 8% is looking at the total, and is not differentiated by category especially those easily transacted online.
"That 8% number I believe is of all consumer expenditures, there are obviously certain categories where there's low penetration online. If you specifically at the apparel market, we are at the mid-teens, 15% of all apparel expenditures are online. That's a really high number, and we expect that to continue to rise," she said.
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Separately, TheStreet Ratings team rates the stock as a "buy" with a ratings score of B-.
Amazon.com's strengths such as its impressive record of earnings per share growth, compelling growth in net income, robust revenue growth, expanding profit margins and good cash flow from operations strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.
You can view the full analysis from the report here: AMZN
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.