August was a good month for fashion retailers.

The default risk for apparel retailers as a sector fell to 2.2 percent from 3 percent last month, according to data from S&P Global Market Intelligence. The data was also good for broadline retailers, primarily department stores, which as a category saw its default risk decrease to 2.7 percent from 2.9 percent.

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In other fashion categories, the risk for footwear retailers inched down to 0.6 percent from 0.7 percent last month. Fashion luxury retailers saw their default risk inch up to 1.5 percent from 1.4 percent in July.

S&P’s data, compiled Aug. 15, 2024, produces scores that represent the median odds of default on debt within one year based on volatility of share prices for public companies on major U.S. exchanges, industry-related risks, and other macroeconomic factors.

The overall default risk for retail in general is 2.4 percent, unchanged from July. The retail sector with the highest level of default risk at 8.9 percent is drug retail, slightly better than the 9.0 percent last month. Personal care products was second at 5.2 percent, up from 4.9 percent in July. Consumer electronics saw the highest increase in the median probability of default, rising to 3.4 percent from 2.9 percent over the same period.

U.S. retail bankruptcies so far in 2024 total 24, up from a tally of 19 over the same year-ago period through Aug. 15, 2023. Among the bankrupt retailers that filed within the last month were home retailers Conn’s Inc. on July 23 and LL Flooring Holdings Inc. on Aug. 11.

Among the fashion retailers that went bankrupt earlier this year were Eastern Mountain Sports, National Wholesale Co. Inc., New Rue 21 Holdco Inc., Express Inc., and JLM Couture Inc.