Bank of America Securities reported that spending during the back-to-school season in August showed notable strength across most retail categories, with apparel standing out.
The firm based its findings on aggregated debit and credit card data, pointing to resilience in consumer activity despite ongoing inflationary concerns.
According to the note, total retail sales excluding autos rose 1.9% year over year in August, compared with 1.1% in July.
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Clothing purchases climbed 4.4% versus 3.5% the prior month, underscoring demand as families prepared for the new school year.
Research highlighted that households with higher incomes increased their apparel spending, while those with lower incomes reduced purchases, widening the consumption gap.
Analysts cautioned that this divide may be linked to price pressures that are hitting budget-conscious consumers harder, especially as new tariffs begin to ripple through the supply chain.
Spending at discount apparel outlets accelerated to 1.3% growth in August from 0.8% in July.
Analysts said off-price retailers are well-positioned as shoppers trade down from full-price chains. Department store sales, however, weakened further, contracting 0.8% after falling 0.4% in July.
Specialty running channels also cooled sharply compared to July, while direct-to-consumer footwear cut its decline from earlier levels.
Jewelry purchases grew 8.6% and beauty sales expanded 9% in August, maintaining their position as the top-performing retail categories.
Athletic footwear and apparel lagged, sliding 2.4% in August after a smaller decline the month before.
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