June 7 (Reuters) - Investors are scouring U.S. credit

card spending patterns to size up which, if any, trends could

give specialty retailers a boost in the summer months.

Recent quarterly results from retailers show shoppers are

selectively buying non-essential, nice-to-have products -

forgoing electronics, but not being shy about plunking down cash

on those wide-legged jeans they've been coveting.

That's been good for sales of in-vogue products such as

Birkenstock's ( BIRK ) shoes, Abercrombie and Fitch's ( ANF )

jeans and Vuori's athleisure clothing - and less so for products

from Home Depot ( HD ) and Best Buy ( BBY ).

"Consumers are being choosier about where and when they

spend. They are seemingly willing to splurge on items that are

not inexpensive, be (it) a pair of Hokas or Birkenstocks," said

research firm Emarketer analyst Zak Stambor.

Demand for on-trend products boosted sales growth in

clothing by 3.2%, sports goods by 1.9% and footwear by 0.4% in

the first quarter of 2024, compared to a year earlier, according

to market research firm GlobalData.

But big-ticket items, particularly related to living

spaces, fell off consumers' shopping lists. Sales of electronics

fell 1.9% for the quarter, while homeware purchases dropped

4.2% during the first quarter, versus the year earlier period.

"Outdoor grills, patio sets ...televisions, couches, beds,

it's all been a bit challenging as of late," Telsey Advisory

Group analyst Joseph Feldman said. "There was a pull-forward of

demand during the pandemic and we're still kind of coming off of

that high and so you're still seeing some softness there."

That divergence is evident in retailers' share prices.

Abercrombie & Fitch ( ANF ) shares have nearly doubled this year, while

Home Depot's ( HD ) stock is down 4.5%.

RETAILER RELEVANCE

Last week, Nordstrom ( JWN ) executives said the company's

first-quarter sales growth in active-clothing and -footwear was

led by a few hot brands, citing Vuori, Hoka and Adidas. The

department store chain set aside designated space in its stores

to tout Roger Federer-backed On sneakers, Sam Edelman sandals

and Birkenstocks.

Across the U.S. retail landscape, "some of the stronger

retailers are doing well. And then some of the brands that are

putting out innovative products are doing well. And then others

like department stores (are) just consistently trying to find a

way to be relevant," Morningstar analyst David Swartz said.

Dick's Sporting Goods noted in a conference call

with investors that it plans to continue its strategy of

offering sought-after brands such as Hoka and On Holding's ( ONON )

sneakers.

Last week, the sporting goods retailer raised its annual

profit and sales forecasts on robust demand for footwear and

athletic apparel. Its shares are up nearly 45% this year.

Other retailers including VF Corp ( VFC ), Victoria's Secret and

Under Armour ( UAA ), have not seen demand bounce back, according to

analysts who said shoppers may feel less urgency to shop at

their stores.

The three retail chains, which saw sales declines in the

recent quarter compared to a year ago, are adjusting their

merchandise to better attract shoppers.

Under Armour's ( UAA ) founder Kevin Plank, who returned as the

company's CEO in April said, "This is not where I envisioned

Under Armour ( UAA ) playing at this point in our journey. That said,

we'll use this turbulence to reconstitute our brand and

business."

After the mixed start to the year for retailers, credit card

data is offering investors clues on which products and brands

were hot or not as summer got underway.

Consumer Edge, a New York-based research firm with hedge

fund and private equity clients, said it analyzed data of about

40 million U.S. credit card transactions to find winners and

losers in the retail landscape. Shoppers spent about 30% more on

Vuori activewear over the six months through May 28, compared to

a year earlier, and 25% more on Skims underwear, it said.

Skims is an underwear clothing company owned by Kim

Kardashian, which is expected to go public later this year or in

2025. Last year, Reuters reported Skims was in talks with

investment firm Wellington Management to lead a new funding

round valuing the company at about $4 billion.

Spending on Abercrombie & Fitch ( ANF ) products, and on Hoka and On

Holding ( ONON ) shoes, also rose from a year ago, according to Consumer

Edge.

However, it said spending on Victoria's Secret products

was down in the mid-single digit percentage range, Under Armour ( UAA )

saw a high-single digit fall and North Face was down mid-double

digits.

In clothing and shoes, "newer, more niche companies are

doing better and we see that they are taking share from the more

established players," Consumer Edge Head of Insights Michael

Gunther said.